Bristol has been named the most expensive UK city outside London for renting office space, with businesses paying an average of £30.73 per square foot a year.
New analysis by money.co.uk of almost 4,000 commercial property listings across 18 major cities found Bristol’s office costs are 94 per cent higher than Glasgow’s, 54 per cent higher than Leeds’ and 27 per cent higher than Manchester’s.
The city also has the joint most expensive prime office space across the UK’s “big six” markets.
Prime rates have risen 39 per cent since the end of 2019, with a further 15 per cent increase forecast by 2027.
Brighton is the second most expensive city at £27.30 per square foot, followed by Birmingham on £24.84 and Manchester on £24.17. Sunderland is the cheapest at £11.25.
The research also highlights a sharp premium for smaller premises. Small offices cost an average of £52.55 per square foot nationally, more than three times the £16.60 average for larger offices of 10,001 square feet or more.
For small businesses considering an upgrade, that means a 116% increase in annual rent, even though the per-square-foot cost falls.
Joe Phelan, business loans expert at money.co.uk, said competitive cities such as Bristol were seeing “soaring operational costs” drive rents higher, leaving many small businesses facing a steep premium.
He warned firms to factor in the full cost of expansion, including rent, fit-out and working capital, and said external finance could help fund growth but must remain affordable alongside existing commitments.
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