# London Class A Office Market

> London Class A office rents around £95/sqft/yr · ≈ $121 PSF/yr USD, with 8.6% vacancy and 24 months of typical rent-free on a 10-year term.

**Canonical URL:** https://classa.info/cities/london
**Page type:** city
**Last updated:** 2026-04-15T00:00:00.000Z
**License:** CC BY 4.0 with attribution to Class A Atlas (https://classa.info).

## TL;DR
- Prime West End rents now exceed £150/sqft/year — historic highs in nominal terms.
- An ESG 'green premium' is now empirically priced into Grade A rents.
- Lease lengths have shortened: 10-year terms with five-year breaks are now standard.
- Service charge plus business rates can equal 30-40% of base rent.
- Pre-lets dominate the new-construction pipeline through 2027.

## Key facts
- **city**: London
- **country**: United Kingdom
- **region**: EMEA
- **classARentLocal**: £95/sqft/yr · ≈ $121 PSF/yr USD
- **classARentUsd**: $120.65/sqft/yr
- **vacancyPct**: 8.6%
- **typicalLeaseYears**: 10
- **typicalRentFreeMonths**: 24
- **submarkets**: 7
- **corporateTaxPct**: 25%
- **talentIndex**: 96

## FAQ
### What is the difference between FRI and a US gross lease?
Under a Full Repairing and Insuring lease, the tenant is responsible for the cost of internal repair, insurance reimbursement, and a proportional share of building maintenance via the service charge. A US modified-gross lease bundles base building services into base rent and escalates over a base year.

### What are dilapidations and how much should we budget?
Dilapidations are a tenant's contractual obligation to return the premises to the condition specified in the lease (commonly 'good and substantial repair', or to a CAT A specification). Provision £35-£75/sqft on a high-end fit-out at lease-end as a planning estimate.

### Are break clauses standard in London leases?
Yes. A 10-year lease with a tenant break at year 5 is the most common institutional structure today. Conditions on the break (vacant possession, no material breach, all rent paid) must be drafted carefully — they are the most litigated part of London office leases.

### How much rent-free is typical?
On a 10-year term, 18-24 months of rent-free is standard; trophy lease-ups can push to 30. On a 5-year term to a strong covenant, 9-15 months.

### Are business rates negotiable?
No — the rateable value is set by the Valuation Office Agency. Tenants can appeal a valuation and structure leases to allocate rates risk, but the underlying liability is statutory.

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Citation: Source: Class A Atlas (https://classa.info/cities/london), updated 2026-04-15T00:00:00.000Z.