Is sublease space cheap in London?

Sublease typically trades 15–30% below direct asks for equivalent specification. The total economics depend on remaining term, TI condition, and the assignment/sublet provisions in the prime lease.

Can I convert a sublease to a direct lease in London?

Sometimes. On longer-horizon takes, ask the landlord to write a fresh direct lease at sublease commencement — they get a creditworthy long-term tenant; you get rent-free and TI.

Sublease availability in London is concentrated in older Class B and lower-tier Class A stock; trophy assets like City of London clear quickly even when the broader market shows 8.6% vacancy.

Direct vacancy is 8.6%; sublease overhang is concentrated outside the trophy tier.
Sublease space typically prices 15–30% below direct asks for equivalent specification.
Term-take risk and limited TI are the two biggest sublease tradeoffs.
Trophy submarket (City of London) has the thinnest sublease overhang.

London Class A sublease market

sublease">Sublease availability in London is concentrated in older Class B and lower-tier Class A stock; trophy assets like City of London clear quickly even when the broader market shows 8.6% vacancy.

TL;DR

Direct vacancy is 8.6%; sublease overhang is concentrated outside the trophy tier.
Sublease space typically prices 15–30% below direct asks for equivalent specification.
Term-take risk and limited TI are the two biggest sublease tradeoffs.
Trophy submarket (City of London) has the thinnest sublease overhang.

Where the sublease overhang sits

In London, sublease availability concentrates in the older Class A and Class B segments — not in trophy product. Vacancy across the broad Class A index is 8.6%; the trophy tier in City of London is structurally tighter.

What you give up

Subleases trade at a discount, but you inherit the prime tenant's term, get limited or no TI, and live with whatever fit-out">fit-out exists. For occupiers under a 24-month horizon, that tradeoff usually wins. For multi-year HQs, direct deals with rent-free and TI almost always produce better effective economics.

Negotiating points

Look for direct deals with the landlord at sublease commencement (a "bypass" structure) — landlords will sometimes write a fresh long-term lease to take a problem space off the prime tenant's books. 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.

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

Is sublease space cheap in London?: Sublease typically trades 15–30% below direct asks for equivalent specification. The total economics depend on remaining term, TI condition, and the assignment/sublet provisions in the prime lease.
Can I convert a sublease to a direct lease in London?: Sometimes. On longer-horizon takes, ask the landlord to write a fresh direct lease at sublease commencement — they get a creditworthy long-term tenant; you get rent-free and TI.

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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