London has long been known for high rents, but in recent years, it’s climbed right to the top of the global office market; especially when you focus on the most expensive spaces in the best buildings. So, what’s driving this, and how does it compare to other major global cities?

Let’s start with the facts. In 2024, premium Grade A office space in London’s West End, particularly Mayfair and St James’s was hitting upwards of GBP £250 per sq. ft. per year (around $315). Thats not the average, thats the peak. And that puts London ahead of the usual heavyweights like Hong Kong, New York, and Tokyo.

Here’s how the top cities stack up by highest office rents per sq. ft. per year (as of 2024):

London (West End) GBP 250 / $315
Hong Kong (Central) GBP 220 / $275
New York (Midtown Manhattan) GBP 210 / $265
Tokyo (Marunouchi/Otemachi) GBP 190 / $240
Singapore (Marina Bay) GBP 180 / $230
Paris (8th arrondissement) GBP 170 / $215
San Francisco (Financial District) GBP 165 / $210
Zurich GBP 160 / $200
Dubai (DIFC) GBP 150 / $190
Shanghai (Pudong) GBP 140 / $180

So why is London at the top?

Its a mix of supply, demand, and prestige. The top tenants hedge funds, private equity firms, family offices, elite consultancies are all fighting for a very limited amount of best-in-class space. These buildings are fully refurbished, tech-enabled, energy-efficient, and beautifully designed. Theyre also in postcode perfect locations with Michelin-starred restaurants, five-star hotels, and discreet private access.

On top of that, London has unique global appeal. It’s politically stable, culturally vibrant, and a hub for finance and global business. And despite Brexit and some economic uncertainty, the capital still draws in serious investment both from occupiers and international landlords.

Another big factor? ESG. The best companies want the best space and that means green
credentials, air quality, wellness features, and future-proofed infrastructure. Landlords who can offer all that in a central London setting are pushing rents to record highs and still seeing demand.

So, is it worth it? For some businesses, absolutely. Being in the best building in the best part of town isn’t just about square footage. It’s about brand, staff attraction, client perception, and long-term positioning.

But for others, especially growing firms, these top-end rents are out of reach. Thats pushing demand into fringe markets, flex space, and emerging locations where the value per square foot is much more sustainable.

Still, when it comes to peak pricing, no one’s beating London right now.