Socially distanced measures in offices could cost UK business owners over £5,450 per person

• Across the UK, it costs on average £394.90 per sqm for prime office space
• Required social distancing measures could mean UK business owners are paying on average £5,450 extra, per person, per year
• City of London is the most expensive place to rent office space at £787 per sqm followed by Reading at £418 per sqm
• In Newcastle it will only cost £266 per sqm

The introduction of socially distanced safety measures in UK based offices, could be costing business owners on average £5,450 extra per person per year.

New research by property website Bayut, has identified the current average cost of prime office space by square meter across the UK^[1] and worked out the financial impact the introduction of social distancing measures will have on businesses.

With many UK workers heading back to the office, YouGov released data on how businesses in the UK expect to change due to COVID with the results showing 59% of UK businesses expect their physical space to either increase or stay the same – proving there is still adequate demand for office space.

Across the UK, it costs on average £394.90 per sqm for prime office space. The legal requirement of space in a UK office is five sqm per person^[2] – meaning on average UK businesses spend £1,974.50 per year per person. However, the recommended size for a standard workspace is nine sqm per person^[3] putting the average up to £3,554.10.

Doubling this to allow for social distancing and extra safety measures to be put in place, could cost business owners a staggering £5,450 extra per person per year.

Top 10 most expensive cities for prime office space in the UK, with and without social distancing measures:

City	Price per sqm	UK legal requirement per person (5 sqm)	Standard workspace (9 sqm)	Individual cubicles (18 sqm)	Price difference between legal requirement and individual cubicles
City of London	£        787.00	£            3,935.00	£             7,083.00	£   14,166.00	£  10,231.00
Reading	£        418.00	£            2,090.00	£             3,762.00	£     7,942.00	£    5,852.00
Manchester	£        396.00	£            1,980.00	£             3,564.00	£     7,524.00	£    5,544.00
Bristol	£        391.00	£            1,955.00	£             3,519.00	£     7,429.00	£    5,474.00
Edinburgh	£        379.00	£            1,895.00	£             3,411.00	£     7,201.00	£    5,306.00
Birmingham	£        368.00	£            1,840.00	£             3,312.00	£     6,992.00	£    5,152.00
Glasgow	£        347.00	£            1,735.00	£             3,123.00	£     6,593.00	£    4,858.00
Leeds	£        326.00	£            1,630.00	£             2,934.00	£     6,194.00	£    4,564.00
Cardiff	£        271.00	£            1,355.00	£             2,439.00	£     5,149.00	£    3,794.00
Newcastle	£        266.00	£            1,330.00	£             2,394.00	£     5,054.00	£    3,724.00
Average	£        394.90	£            1,974.50	£             3,554.10	£     7,503.10	£    5,449.90

It’s no surprise to see City of London take the top spot, but it’s interesting to see Reading come in second. At £418 per sqm, businesses could be paying on average £7,942 per person per year for their office needs. Manchester follows closely behind at £7,524.

On the other end of the spectrum, Newcastle and Cardiff come in at the cheapest places to rent prime office space even when allowing extra space for social distancing at £5,054 and £5,149 respectively.

Sahar Khan, Director of Marketing at Bayut, said: “With offices starting to open their doors and welcome back workers, we have a pretty clear picture of what’s happening with different businesses in the UAE, but wanted to evaluate the financial implications that social distancing measures could have on businesses across the UK.

“It was no surprise that London was the most expensive, as it has always been seen as the number one location for businesses for many reasons. However, with so much uncertainty and pressure to keep staff safe and well, it is natural that business owners are adapting to the new norm, are open to looking at what other options are available to them across the UK, and hence are keeping an open mind to the effects this will have on their bottom line.”