Landlords sweeten rent-free office deals in London, as scores of people continue to WFH

Numerous office staff in London have worked from home since March 2020

29 January 2021

Would-be office tenants are being offered improved rent deals in London, as landlords grapple with the impact working from home has had on the property market.

Research from property agent Carter Jonas said in the fourth quarter some firms were able to get 2.5 years rent free on some new and revamped office buildings in the capital.

That is based on a 10-year lease and for lettings that are 5000 square feet or higher.

The sweeteners in the fourth quarter in all parts of central London were higher than typical rent free periods offered in the same period a year earlier.

In the City 28 months were typically given rent free, up from 24, and in the Docklands up to 30 months was given, up from 26.

Michael Pain, head of Carter Jonas’ tenant representation team, said: “Landlords have responded to the fall in demand for London office space, following the onset of the Covid-19 pandemic, by offering longer rent-free periods.”

The office leasing market suffered in the capital last year as the government urged people to work from home for lockdowns, and some companies are expected to embrace remote or more flexible working longer term.

But landlords think there will still be good demand for some of the most modern offices.

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Landlords sweeten rent-free office deals in London, as scores of people continue to WFH

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