The gap between office occupancy costs in central London and the UK’s regional cities has narrowed from its peak in 2016, according to Lambert Smith Hampton’s Total Office Cost Survey (TOCS).
The report, which factors in 22 different costs ranging from rents to business rates and waste management, shows that average occupancy costs across the ‘big six’ cities of Birmingham, Leeds, Bristol, Manchester, Edinburgh and Glasgow now stand 40% below the equivalent costs in London’s Midtown district, compared with 42% last year and 44% in 2016.
“This reflects the continuation of rental growth in the major regional cities, alongside stable rents in the capital,” says Oliver du Sautoy, head of research at LSH. “It means that while the West End of London is by far the most expensive office location, its relative cost premium erodes for a second year.”
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