[Updated March 2023]
Welcome to this overview of the Mayfair district of central London.
This overview discusses Mayfair as a district and the office space options within it. For further information regarding Mayfair office space check out this Mayfair office listings page where you will find information on serviced office space, managed offices, co-working spaces and private member business clubs in Mayfair. You will also find details on free office finding services.
Mayfair is one of the most exclusive real estate districts in the world. It is an area of central London sat between Hyde Park and Oxford Street and is also bordered by Piccadilly and Regent Street. It is located in the West End of London and has the postcode districts of W1J, W1K and W1S.
It is a 300-acre district with a 300-year history – it actually dates back a bit further, to 1686, as the location of the annual ‘May Fair’ – and is home to internationally renowned institutions, first-class hotels, Michelin-starred restaurants, luxury boutiques and international embassies.
It is also home to some of the most expensive real estate in London, and the world.
Why is real estate in Mayfair so expensive?
Mayfair is one of the top 3 most expensive real estate locations in the world and often takes the top spot.
In 2019, the UK’s record for the highest rent was broken when hedge fund, Steadview, agreed to pay £250 per square foot for its London headquarters offices at 30 Berkeley Square.
The previous highest UK office rent record was in the neighbouring prime West End district of St James’s where fashion investment tycoon Lawrence Stroll paid £190 per square foot in 2017. Stroll is famous in the fashion world for bringing Pierre Cardin fashionwear and Ralph Lauren clothing to Canada, and is the father of Formula racing driver Lance Stroll.
The capital values of non commercial properties in Mayfair average £2,000 per square foot with some super-prime new properties exchanging for well in excess of that.
So, why is it so expensive?
There is a large number of Grade II listed properties in Mayfair, both residential and commercial. There are many modern, premium office spaces that are within these Grade-II listed properties that retain original period facades and other features. But this isn’t unique to central London and certainly not the West End.
There are also several Grade I listed town garden squares which are certainly very pleasant features of a district, however, there are other districts in central London that also have garden squares.
Is it expensive because of its central location? Maybe, but other locations such as Soho, Marylebone and Covent Garden and so on are just as central, some may be more so, yet are considerably cheaper.
Is it because of its proximity to green spaces such as Hyde Park and Green Park? Possibly, but many other parts of central London have green spaces, too.
It is home to Bond Street, home of designer boutiques and high-end luxury goods, it is also the home of ornate Victorian shopping arcades such as the Burlington Arcade, and also some historical five-star institutions such as The Ritz, Claridge’s and The Connaught, which in turn would go hand-in-hand with first-class restaurants and private clubs, of which there are several.
It is close to both Buckingham Palace and St James’s Palace but neighbouring St James’s is closer to both of those.
Mayfair has a history dating back to the 1700s as being home to the aristocracy and members of the upper classes. It has been home to dukes and duchesses, earls, viscounts and so forth. Indeed, Queen Elizabeth II, the UK’s current reigning monarch was born in Mayfair, on Bruton Street to be precise, in 1926.
It also features in many pieces of literature from Jane Austen to Oscar Wilde to P.G. Wodehouse – the creator of Jeeves and Wooster.
It would appear, therefore, that the unique combination of all of the above factors, plus others, is the reason that Mayfair remains the most expensive real estate district in central London and the rest of the world.
What occupiers are there in Mayfair?
Mayfair is renowned for its internationally acclaimed hotels such as Claridge’s and the Ritz, its Michelin-starred restaurants, of which there are many, its boutique designer stores, elegant Victorian shopping arcades and private members clubs such as Annabel’s, The Conduit, Morton’s and Harry’s Bar.
There is quite a mix of office space occupiers in Mayfair, also, publishing house Vogue had its headquarters offices in Mayfair for years. There are also many hedge funds, particularly boutique funds based here. There are international and luxury real estate advisory firms based in the district and also private banks and wealth management companies.
There is actually quite a variety of office occupiers in the area and the diversity has increased with the introduction of flexible workspace options in Mayfair.
What sort of office space options are there available in Mayfair?
Leased office space in Mayfair is the same as any other UK location in the sense that the tenant signs, in most cases, a full repairing and insuring (FRI) lease and then is responsible for the maintenance, repairing and insuring of the office space that they occupy, also known as a tenant’s ‘demise’.
They are also responsible for contributing towards the servicing of the common areas of the property and so pay a ‘service charge’. The service charge covers items such as maintenance, cleaning, furnishing of the common areas, utility costs of the common areas, security, sinking funds for large repairs such as the roof, lift maintenance and so on. The service charge is priced on a square footage basis and is therefore related to the size of the demise.
A leased office space tenant will be responsible for paying the ‘Business Rates’ which are similar to council taxes. When it comes to office space, the demise is referred to as the ‘hereditament’ and the ‘Rateable Value’ of the hereditament is based on a multiplier known as the ‘Uniform Business Rate’ multiplier, and the value that the Valuation Office Agency (VOA) has previously determined.
The tenant will also be responsible for setting up and paying for all items within the demise including utility bills, cleaning, decorating, furnishings, broadband and so forth.
There are an increasing number of flexible workspace options available including serviced offices in Mayfair as well as managed office spaces, co-working space centres and private member business clubs.
These all provide their own individual offerings but what they have in common is the lack of onerous leases as they are, more often than not, arranged via a relatively simple licence.
They are easy to arrange and relatively easy to terminate, too which provides a great amount of flexibility and agility. This is useful if an occupier wishes to move into a larger or smaller space within the same building – something that most office providers in Mayfair are happy to facilitate.
Most flex space options in Mayfair are on all-inclusive rental bases so the one-monthly licence fee that is paid covers the rent, service charge and business rates.
The fee also, in most cases, covers furnishings, utilities, decoration and maintenance, cleaning, secretarial services, and other items. Some flex workspace properties have extra inclusions such as allowing signage to be placed on the directory in reception and providing complimentary refreshments.
Most include free local and national telephone calls and broadband although this can vary from provider to provider.
What are the office rental costs in Mayfair?
Costs of leased office space in Mayfair:
The average cost of Mayfair office rent is £90 per square foot per annum.
The typical business rates for Mayfair office space is £42 per square foot per annum.
The average service charge for office space in Mayfair is £9 per square foot per annum.
Cost of flex space options in Mayfair:
Typical all-inclusive serviced office costs in Mayfair are £850 per desk per month.
There are 25 flex space providers in Mayfair offering a diverse range of workspace options including private serviced offices, managed office suites and coworking desk space membership options for companies and individuals. Each of these operators is profiled in this directory.
How would you go about finding and securing an office in Mayfair? What’s the process?
If you are opting to take leasehold office space in Mayfair then we would always recommend instructing an RICS-accredited office agent that has a proven track record within the Mayfair office space market. You can find such agents on the RICS website.
In most cases, the fee for the agent will be 10% of the first year’s rent. You will also need to instruct a solicitor to finalise the lease.
If you are undecided between leasehold offices and a flexi space solution then it is important to use a company that understands the two different products.
For instance, it can be difficult to make a clear side-by-side comparison of flexible workspace and leasehold space pricing.
One price is solely for rent and is based on a square footage basis per annum and the other is per desk per month.
*Shameless plug alert!*
This is a service that we provide, we are independent and impartial and simplify the process for our clients and, for instance, explain that a ‘desk space’ is equivalent to approximately 75 square feet and then help them make the comparisons from there.
We also look at the unique requirements of a company and help them to decide the best solution for them.
We come to understand your requirements, scan the market, and produce a report, we can arrange viewings and can then provide negotiation support, too.
This is a free service that we provide because we are funded by the providers of the office space.
We are also an RICS-regulated company.
Is there anything to watch out for when signing for office space in Mayfair?
As mentioned earlier, with leasehold office space, it is extremely important to instruct an office agent and preferably one that is accredited by the Royal Institution of Chartered Surveyors (RICS).
An RICS-accredited office agent is not always necessary; however, you will always need a solicitor/lawyer to run through and negotiate your lease terms on your behalf, looking for any onerous clauses in this lease, the sublease, the head lease, and to understand the proper procedures for serving notices, for explaining your obligations and so forth.
Flexible workspace licences are fairly simple but do not provide the same tenant protection as a lease. For instance, an occupier will not be protected by Part II of the 1954 Landlord and Tenant Act. That being said, that is the payoff of being able to sign for a shorter term.
It is still important to keep your eyes wide open when signing any contract and to look to see if there are any exclusions such as broadband or car parking costs that you weren’t expecting.
Again, we can help with this (another shameless plug!).
Are there good amenities in Mayfair?
Mayfair has almost every amenity and service imaginable. If it’s not in Mayfair itself, you will find it very close by on Oxford Street, Regent Street or elsewhere in the West End.
Although Mayfair is renowned for its 5-star hotels, exclusive restaurants and other premium offerings, it also has a wide range of other amenities including coffee shops, food shops and other retailers. There is a wide range of cafes, lunch spots and other types of eateries, too.
You’ll find art galleries, nightclubs, and a wide variety of bars and pubs.
There are gyms, yoga studios such as Kingya Therapy Suites on South Molton Street, and meditation centres such as the Emma Mills Meditation Centre on Bond Street.
There are also creches and childcare facilities in Mayfair such as Peek a Boo on Dover Street and Tiniehands on Maddox Street.
What are the transport links like in Mayfair?
There aren’t any underground tube stations within Mayfair itself but the stations of Green Park (served by the Jubilee, Piccadilly and Victoria lines), Bond Street (served by the Central and Jubilee lines) and Hyde Park Corner (served by the Piccadilly Line) are just on the border of Mayfair and are easily accessible.
Several bus routes run through and very close to Mayfair.
There 3 Transport for London (TFL) cycle docking stations in Mayfair – on Bruton Street, Curzon Street and Farm Street. From these, you can hire a bike 24 hours a day, 365 days of the year.
There are also quite a few car hire companies and there are various car parks including an NCP on Adam’s Row and a JustPark on Old Burlington Street.
Is it easy to recruit new staff in Mayfair?
It shouldn’t take much to convince your existing team to relocate to Mayfair or to recruit new staff to come and work at your office in Mayfair. It is, after all, one of the most exclusive districts in central London and, arguably, the world.
So, there’s the panache of the area that is a real draw. It is also very well connected with easy access to transport links. Its prestigious reputation is not a well-kept secret either due to its status as the most expensive property square on the London edition Monopoly board.
In terms of actually recruiting staff in Mayfair, there are recruitment agencies that are based close to Mayfair and operate in various sectors. Some examples include Bluefire Consulting on Berkeley Square, Pip Recruitment on Grosvenor Street and RMS Recruitment on Maddox Street, as well as many others.
What sort of business support is there in Mayfair?
London and the City of Westminster provide various levels of business support through grants, networking events, online information and other resources.
Your first port of call could be the City of Westminster website.
We have also produced a guide to Opening an Office in Mayfair with useful resources for any business looking to take workspace in the district and this can be found here
Outro
So, that is our overview of Mayfair, the office space available and how to go about searching for and securing an office for your business in Mayfair.
This is, of course, just an overview. Nothing replaces a conversation with an office space broker to allow them to understand your specific requirements but that being said, we hope this is of some use.
If you would like to discuss locating your office in Mayfair or would like any further information on how we can assist you in helping you find the best space for your business in a district, please just get in touch.
The audio version of Choosing Office Space to Rent in Mayfair is available on the link (Please note that this is audio for the original article and not the updated article).