London managed offices now command a 40% premium over serviced offices and their supply increased 5.5% in Q4 2025, Property Week can reveal.
Data from online marketplace Rubberdesk shows managed offices cost an average £230 per desk more than their serviced counterparts, as demand for flexible workspace remains strong, particularly for the fit-out control and tailored terms managed spaces offer.
The data found that serviced office prices in the capital fell 4% year-on-year in Q4, while managed office prices largely held firm.
However, serviced offices continue to draw occupiers, with serviced office operators competing largely on the basis of price reductions, which led to strong take-up for serviced space in Q4, as stock levels contracted 7.3% year-on-year.
London desk rates comparisons. Source: Rubberdesk
Rubberdesk said competitive pricing among serviced office operators would continue to drive strong occupancy in 2026, while the expanding managed sector seems set to continue capturing a growing share of the market.
Tom Petryshen, Rubberdesk vice-president of growth and analytics, said: “The 40% rate premium managed offices command over serviced offices isn’t a luxury tax. Businesses are willing to pay for bespoke, branded workspace that reflects their identity and operational needs.
“The fact that managed rates held firm while serviced office rates fell 4% amidst economic turmoil says a lot about where the market is heading.”
Prices differed greatly based on location, with the premium for managed offices standing at 96% in Mayfair but just 13% in Holborn, where the managed office model is less established.
In Mayfair, the average managed rate of £1,787 is more than double the serviced equivalent, a difference Rubberdesk attributes to the ultra-premium, institutional-grade managed stock that has entered the West End over the past year, causing managed office rates to surge 47.4% year on year.
The data also shows the central London serviced office market shifting towards smaller teams, as operators increased spaces in their portfolios with between one and four desks by 31%, compared with 17% for five-to-10-desk spaces. In contrast, provision of all office sizes with more than 10 desks shrank.
Rubberdesk chief executive Jim Groves said: “Serviced operators are focused on filling smaller units, which means mid-size occupiers can command better terms than the headline rates suggest. At the same time, managed supply is expanding faster than it’s being taken up.
“Smart businesses should be playing both sides of that equation. They can get competitive pricing from serviced offices while using the managed surplus to negotiate on amenities and term flexibility.”
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