City vs Outer Boroughs: Finding the Right Office Space in London

Location can make or break your business strategy! Choosing the right workspace environment is vital to business productivity, but it can be overwhelming. Hefty rents, long commutes, and limited availability often leave businesses struggling to balance budget, location, and team needs.

Each workspace option comes with alternatives, from transport links to amenities, catering to different business requirements. Securing a suitable location significantly boosts your brand’s credibility, while a wrong decision can hinder productivity, limit client access, and restrict growth.

This guide explores the key factors for selecting office space in London, helping you compare city and suburban options to find the perfect fit for your business.

Why Does Location Matter When Choosing Office Space in London?

London’s office market offers diverse office options, each catering to distinct business needs. For instance, Central areas are hubs of finance, tech, and creative industries, offering prestige and unmatched accessibility. In contrast, suburban boroughs are popular for startups and small teams seeking cost-effective, flexible solutions without the hefty price tags of the City.

Choosing the right location directly influences your brand perception, client relationships, and your team’s daily commute. Each choice has alternatives, from commuting ease to building amenities, so evaluating these factors carefully is crucial for long-term success.

Central vs Outer Boroughs: Picking the Best Fit for Your Business

Understanding what each location type offers will help you match your workspace to business goals and team needs.

Central London: Access, Prestige, and Networking Opportunities

Office spaces in Central London put your business in the centre of growth. Locating here means getting surrounded by high-profile companies, which opens doors for networking and client meetings. The area offers excellent transport links, from the Tube to mainline trains, making commutes easier for employees and visitors.

In Q1 2025, prime office rents in the City of London typically ranged between £80/sq ft and £100/sq ft. In the West End, rents were significantly higher, often between £140/sq ft and over £160/sq ft for core locations, driven by the intense “flight to quality” trend, with premium central deals exceeding £200/sq ft. High demand means most offices are occupied, so securing good space demonstrates a business’s credibility and success to clients and partners.

Outer Boroughs: Cost-Effective and Spacious Options

Outer London offices give you more value and space at affordable prices. Rent in many suburbs, such as Whitechapel, Hackney, and Stratford, falls between the high £30s and £45 per square foot, which makes a significant difference for growing teams and startups.

These locations often feature larger layouts, parking spaces, and emerging business communities. They offer a chance to build a productive workspace without breaking the bank, making them appealing for expanding companies.

Key Considerations for Selecting Between Central and Suburban Office Spaces in London

When deciding where to set up, it’s helpful to weigh financial, operational, and employee factors. Below is a concise summary before diving deeper: central locations offer prestige and connectivity, while suburban spaces offer room to grow and lower costs.

• Cost Considerations: City Centre vs Suburbs

Rent is a significant factor when choosing an office space in London. Central London comes with high headline rents, as well as service charges, utilities, and parking. Suburban locations are much more affordable, giving companies financial breathing room.

Prime City Rates and Hidden Costs

City rents are steep, sometimes as high as £250 per square foot, depending on the grade. Beyond the headline rent, expect substantial additional charges, including service charges, utilities, and high parking fees. These factors combine to form the Total Occupancy Cost, which can be 40-60% above the headline rent. 

Furthermore, prime Central buildings often command a premium due to their ESG compliance (e.g., high BREEAM or LEED ratings), a non-negotiable factor for many large companies this year.

Outer Borough Savings and Value Opportunities

In outer boroughs such as Hackney and London Fields, rents typically range from the high £30s per square foot, rarely surpassing £50. Affordable costs allow you to invest resources in other areas of your business or secure a larger, more comfortable office, which is ideal for growing teams.

• Amenities and Workplace Quality

Office layout significantly influences employee satisfaction and efficiency. A well-equipped space with modern amenities can make a massive difference in attracting and retaining talent.

City Offices: High-End Facilities and Modern Workspaces

Central offices include premium facilities such as meeting rooms, event spaces, networking lounges, and high-speed internet. Many spaces are tech-enabled, seamlessly supporting hybrid work and client-facing events.

Suburban Offices: Emerging Facilities with Flexibility

Outer borough offices may not have the same luxury as the city, but they’re catching up. Many sites offer sufficient meeting areas, parking, and hybrid-ready setups. Some of them even feature creative interiors and coworking hubs, making them perfect for contemporary professionals seeking adaptable spaces.

• Employee and Workforce Considerations

Your team’s daily experience affects your business productivity. While you’re searching for perfect office space in London, consider commuting times, transport options, and lifestyle preferences.

City Offices: Easy Access for Professionals

City locations are a magnet for talent due to excellent transport connectivity, nearby restaurants, retail, and other convenient amenities. Both clients and employees prefer offices near major transport links, which leads to shorter commutes for those living centrally and easier access for clients during meetings.

Outer Boroughs: Lifestyle and Affordability Balance

Suburban offices provide larger workspaces, less congestion, and better parking. While public transport can be slower, many teams find that a quieter environment and reduced stress levels improve morale and productivity.

Trends Shaping the Choices for Office Spaces in London

Post-pandemic, hybrid work has reshaped the demand for office spaces. Many companies are now splitting teams between central offices and suburban hubs, balancing prestige with cost-efficiency. Emerging boroughs like Hackney, Deptford, and Barnet are becoming attractive alternatives due to flexible leases, growing business communities, and improving transport links.

This trend is inspiring landlords to offer modern amenities and adaptable spaces outside the city, making suburban offices an effective long-term solution for many businesses.

How to Decide Between City and Outer Boroughs?

Creating a checklist can simplify the decision-making process:

By evaluating budget, team size, client proximity, and long-term growth plans, you can choose a location that aligns with both your operational and cultural goals.

The Final Verdict

Choosing the right office space in London requires balancing prestige, cost, amenities, and workforce needs. City centres offer visibility, networking, and convenience, while outer boroughs provide affordable, spacious options suited for growing teams.

Careful consideration ensures your office supports productivity, boosts your brand’s image, and positions your business for growth. Take time to compare locations, visit spaces, and compare the alternatives. Your choice can define your company culture and success for the coming years.

Now is the time to explore your options and secure a workspace that matches your goals. Research thoroughly, tour potential sites, and consult experts, such as Office Hub, to make an informed decision.

Your perfect office space in London awaits! Chat with Office Hub’s experts to arrange a free tour to your desired locations.