Key findings – How much office space do I need?
- “Hybrid layouts can reduce space needs by 10–50%, translating into cost savings of up to £8,500 per employee/year.”
- “Office density directly impacts costs: There’s a 3–4× difference in space and cost allocation between call centres and finance firms.”
- “In 2024, the average London office footprint was 5,622 sqft — but sector demand varies widely, with financial firms averaging 10,262 sqft and creative agencies managing with as little as 500 sqft.”
- “77% of sub-70 desk lettings in West London were on flexible terms in 2024 — and flex leases below 5,000 sqft are more cost-effective than conventional leases under 5 years.”
Office requirements aren’t just about aesthetics or amenities; square footage is also a key factor that can help businesses operate efficiently, especially in demand-driven real estate markets like London.
Office Space Needs Will Vary by Industry/Sector
Different industries work in fundamentally different ways, and their square footage needs reflect that. Industry-specific workflows, employee density, tech infrastructure, collaboration style, and client interaction models all play a role in shaping how much office space is required.
In this article, we’ll look at the unique office space requirements of different sectors and at the factors you need to keep in mind to make informed leasing decisions that align your workspace strategy with your operational needs.
Office Space Requirements in London: General Guidelines & Trends
Across London’s serviced office market, businesses typically need a minimum floor area of 35-50 square feet per employee, and up to 85 square feet of floor space per employee in managed workspaces.
Firms based in conventional offices have a larger average floorspace requirement of 150-200 sqft / employee, a figure that has increased across the board post-pandemic, but especially in European markets where office-based businesses now require an average of 20 additional square feet per employee.
This translates into an increased overall footprint. In central London, 54% of businesses have a larger floorspace requirement for 2025, with the majority of demand being in the 5,000-25,000 sqft range, and the average being 5,622 sqft.
Demand for large workspaces with extra square footage is also on the rise: in early 2025, the City experienced the highest volume of office transactions of 50,000 sqft and above since 2019, and the rest of central London had a record high volume of requirements over 100,000 sqft.
Creative Agencies (Advertising, Marketing, Design)
- Average space: 100-200 sqft / employee
- Key factors: These companies prioritise collaboration and flexibility. The nature of creative work means that fixed desk arrangements are often replaced by agile setups to accommodate brainstorming sessions and cross-functional teamwork. Some creative teams also require dedicated space for AV equipment, editing rooms, or in-house production suites.
- Typical locations: Camden, Islington, Shoreditch and parts of East London like Dalston and Hackney, where the number of creative firms has surged by 60% since 2018.
Sales Teams (Real Estate, Pharmaceuticals, B2B)
- Average space: 150-250 sqft / employee. Pharma companies may have higher average space requirements due to the need for technical and specialist space, although some can do with below-average floorspace if no lab operations are needed, as is the case with this Heathrow-based company, which allocates 55 sqft / employee.
- Key factors: Meeting rooms, client-ready boardrooms, presentation zones. These firms typically need space that supports both internal collaboration and external-facing interactions, like client-ready boardrooms, quiet spaces for calls, and private areas for negotiations.
Compared to businesses without a heavy sales focus that might only require a small meeting room, sales-focused offices tend to allocate a great deal of space to their meeting rooms and presentation areas, resulting in larger space allocations per employee compared to other industries.
Financial Firms (Banking, Fintech, Insurance)
- Average space: 200-250 sqft / employee. Average office size is 10,262 sqft, although larger deals of 100,000+ sqft aren’t unusual in the EC2 area.
- Key factors: Finance firms typically need reception areas, dedicated desks, and private offices, especially for roles that require secure data handling. This need for compartmentalised space creates a higher average square footage per employee.
- Typical location: Best-in-class buildings in core CBD locations. Financial occupiers account for 23% of central London take-up in Q1 2025 and for more than 50% in the West End.
Call Centres (Telecoms, Customer Care)
- Average space: At averages ranging from 64-75 sqft, call-centre operations use nearly half the space per person compared to financial firms.
- Key factors: These companies rely on high-density seating, as they typically need to fit large teams into the most operationally efficient layouts. That means smaller desk footprints, limited meeting space, and minimal breakout areas. Additional space for IT and telecom infrastructure may be needed, as is training space, given the 26%-44% turnover rates in this industry.
Tech Firms (Startups, Scale-ups, Software Developers, Digital Agencies)
- Average space: 150-175 sqft / employee.
- Key factors: These companies prioritise spaces that facilitate project work and variable headcounts, blending open-plan desks with meeting rooms and agile collaboration zones.
- Typical location: Silicon Roundabout, Shoreditch, King’s Cross, and Fitzrovia. These firms tend to favour West End markets, where they accounted for 22% of all transactions within the first 3 months of 2025.
Why Data Matters — The Strategic View
For businesses operating in or relocating to London, the ability to right-size their office is a strategic advantage. With Grade?A rents averaging £70 / sqft in the City and £98 / sqft in the West End, and forecasts predicting annual growth rates of 4% through to 2030, every square metre must deliver tangible value.
Let’s look at how to use the data presented so far to calculate space requirements and optimise your office footprint strategy.
Calculating Office Floorspace Needs
1. Calculate your approximate footprint
Number of Employees × Standard Space Allocation by Industry (figures below)
2. Consider your processes and work culture
Collaborative (e.g. creative, tech startups)
Favour open-plan layouts, breakout spaces, and project areas.
Recommendation: 80–120 sqft per person.
Client-Facing (e.g. sales, legal, real estate)
Prioritise meeting rooms, client lounges, and private offices.
Recommendation: 100–150 sqft per person.
Process-Driven (e.g. call centres)
Optimise for high-density.
Recommendation: 50–80 sqft per person.
Confidential & Regulated (e.g. finance, insurance)
Account for high compartmentalisation.
Recommendation:150–200 sqft per person.
3. Factor in common areas
Meeting room: 100 to 150 sqft
Boardroom: up to 220 sqft
Training / Conference room: 300 sqft
Kitchen: 100 sqft
Server room: 120 sqft for every 4 server racks.
Reception: 200-300 sqft
Filing and storage: 50-100 sqft
Wellness / relaxation / communal areas: 100 to 150 sqft
General rule for amenities: +30-40% of required space.
4. Account for projected growth
Add 10-20% to your footprint estimate if you’re planning to expand within 2 years.
Cost & Space Optimisation Strategies
Hybrid layouts
Office-based firms can achieve 10-50% space savings using hybrid layouts that reduce rent, energy, and facilities costs. By tailoring space to actual office attendance based on remote work and hybrid schedules, companies can reduce underutilised square footage, reconfigure fixed desks for employees into bookable desk space options, and transform underused meeting rooms into multi-functional zones. This is especially valuable in London, where demand for flexibility and premium amenities is driving rents and tenant expectations upwards.
Flexible leases
Flexible office space is an attractive option for small and medium businesses. In West London, 77% of office lettings with less than 70 desks are on a flexible basis, whereas occupancy in flex spaces in City and Southwark reaches 88%.
Real estate analysts estimate that flexible space is more cost effective in leases shorter than 5 years for firms that have up to 50 desks and a footprint below 5,000 sqft. Average savings are estimated at £8,500 per employee / year.
Conclusion
Different major industries, sectors, and companies at varying growth stages will work in fundamentally different ways and have distinct physical space requirements alongside their specific tech infrastructure, layouts, and commercial property type. And as we’ve seen from our analysis, their square footage needs and the workspace floorplates they choose will reflect this difference.
Hopefully, you’ve come away with some practical advice on narrowing down floor plans on offer and how much space will be required for your particular business, including your future growth plans and projections.
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