What's a typical lease term in London?

10 years for institutional Class A. Shorter terms are achievable on smaller floor plates with stronger covenants.

How is rent quoted in London?

In GBP/sqft/year. We also publish a USD-normalised view ($121/sqft/yr) for cross-market comparison.

London leases are predominantly Full Repairing and Insuring (FRI).

Typical lease length: 10 years.
Typical rent-free: 24 months.
Vacancy: 8.6%; trend rising.
London leases are predominantly Full Repairing and Insuring (FRI).

London office lease norms

London leases are predominantly Full Repairing and Insuring (FRI).

TL;DR

Typical lease length: 10 years.
Typical rent-free: 24 months.
Vacancy: 8.6%; trend rising.
London leases are predominantly Full Repairing and Insuring (FRI).

Structure

London leases are predominantly Full Repairing and Insuring (FRI). Tenant pays service charge and is responsible for dilapidations on lease end. Rent reviews to open-market rent every 5 years are standard. Rent-free periods of 18-30 months on a 10-year term are typical, with 'capped' rent-free for break-clause certainty. Personal guarantees are uncommon for institutional tenants; rent deposits are common for younger covenants.

Negotiating levers

Free rent and TI remain the most negotiable line items; landlords prefer concessions to face-rent cuts because they preserve headline rent and implied valuation. Always model effective rent (face minus PV of concessions).

Key facts

city	London
country	United Kingdom
region	EMEA
classARentLocal	95 GBP/sqft/yr
classARentUsd	$121/sqft/yr
vacancy	8.6%
typicalLeaseYears	10
typicalRentFreeMonths	24
submarkets	7
primeYieldPct	4.5%

Frequently asked questions

What's a typical lease term in London?: 10 years for institutional Class A. Shorter terms are achievable on smaller floor plates with stronger covenants.
How is rent quoted in London?: In GBP/sqft/year. We also publish a USD-normalised view ($121/sqft/yr) for cross-market comparison.

Editorial provenance

Reviewed by Samuel Okafor — EMEA contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.

Primary sources for this page

CBRE Marketview reports — CBRE
JLL Office Insight — JLL
Cushman & Wakefield Marketbeat — Cushman & Wakefield
Savills World Research — Savills
Colliers Global Office Outlook — Colliers

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