London Tops Global Fitout Costs: Why Leasing Makes More Sense Than Ever

According to recent research by Turner & Townsend the cost of fitting out high specification commercial space in London is higher than anywhere in the world. The research also found that Birmingham, Manchester, Glasgow and Edinburgh had the highest commercial construction costs in the UK.

Analysing fit-out costs across 50 global locations they discovered that after London, the next most expensive location is New York followed by Zurich and San Francisco.  Whilst this might be surprising as these cities have much more expensive basic costs of construction, the Grenfell disaster has a huge part to play in this.  Increased building safety and fire regulations are driving this cost spike in London, particularly in high-rise buildings.   A lack of specialist skilled workers in the UK in this area means fees are around double the equivalent cost in New York.

As businesses struggle to align their aspirations for office space with the increasing costs, leasing becomes even more attractive.

Spreading the cost over 5 years allows them to transform empty spaces into fully new and customised spaces, ready to welcome team members back to the office.