The district of Mayfair has been a thriving commercial area since the late nineteenth century. Mayfair is conveniently located in the heart of central London and offers easy access to some of the capital city's most important landmarks, as well as to other key business and retail districts, such as Oxford Circus, Westminster, Bond Street, Piccadilly Circus, Oxford Street, and Knightsbridge. Today, Mayfair is one of the most exclusive residential and commercial areas in London and a highly sought-after district by business owners and entrepreneurs who are looking to set up business or to relocate to one of the world's most prestigious postcodes.
The Business Environment in Mayfair
Mayfair is an established business district that has a diverse and prosperous economic base. The interests of local businesses are represented by the Mayfair & St James' Association, which has been active for over 40 years. The association is a great starting point for prospective occupiers who are looking to obtain reliable information about the local business environment or to network with other business owners.
There is a wide variety of business occupiers in Mayfair. The district is home to several high-end retailers, many of which are clustered around Burlington Arcade. A number of foreign embassies are based in Mayfair, most notably the Canadian High Commission, the American Embassy, and the Embassy of Japan. There are also several exclusive private members clubs located in Mayfair, such as the prestigious Carlton Club, the Cavalry & Guards Club, and the Naval and Military Club.
The banking and financial sector also has a strong presence in Mayfair, as there are several hedge funds that have chosen to set up their headquarters here. The number of private equity firms and hedge funds present in Mayfair doubled between 2013 and 2014, and according to a recent real estate agent's report, this sector accounts for 31 per cent of all Mayfair businesses.
There are 18 luxury hotels in Mayfair that provide accommodation to high-profile businessmen from all over the world in renowned venues like The Dorchester, Claridge's, the Grosvenor House Hotel, The Dukes, The Cavendish, and The Ritz. The high-end hospitality industry is further represented in Mayfair through more than 30 Michelin-starred restaurants. Tourism is also an important sector here, as there are several renowned arts centres and museums in the district, including the Royal Academy of Arts and over 100 art galleries that are mainly clustered around the neighbourhood's northern end, near Bond Street.
Other noteworthy business sectors in Mayfair include real estate companies catering to both residential and commercial occupiers and the professional business services industry, which includes legal, asset management, and accountancy firms, among many others.
Office Space in Mayfair
Mayfair is often hailed as the ultimate office and business address. The district is home to many historic buildings and mansions built as far back as the 17th century, which have now been converted into exclusive business premises. A large number of these converted premises are being leased as premium office space. All in all, it is believed that the commercial property market in Mayfair generates £1 billion per year through office transactions. It is estimated that a further £1.3 billion will be invested in this area over the coming five to ten years thanks to the development of the London Luxury Quarter, which is expected to absorb surplus demand from surrounding areas. While the Luxury Quarter mainly offers retail floor space, the area also contains over 715,000 square feet of luxury office space.
Mayfair is known for having some of the most expensive office space in the United Kingdom and in the world. Rental values of £115 per square feet are not uncommon, particularly in the streets leading to Grosvenor Square, Charles Street, Hanover Square, Curzon Street, Berkeley Square, and Savile Row. Lower rents tend to be clustered around the western end of Mayfair, and especially in areas like South Street, Upper Brook Street, Old Park Lane, and Park Street.
Another key characteristic of the office market in Mayfair is its limited availability, given that strict planning and development restrictions apply to this area. With the exception of the London Luxury Quarter, there aren't any new speculative developments in the pipeline, which means that demand for Grade A office space outstrips supply. However, over the past few years serviced office space has become an increasingly convenient alternative to conventional office premises in Mayfair. Serviced offices in this area are often located in modern and/or purpose-built premises that do not carry the premium of period office buildings. In fact, the W1 postcode (which includes the district of Mayfair) has the highest number of business centres and serviced offices of the British capital. Average costs per workstation are in the region of £600 per calendar month.
As for the future of the office market in Mayfair, expert analysts affirm that the district will continue to grow. The arrival of Crossrail service to nearby Oxford Street is likely to drive further investment into the area, which will in turn result into higher demand for high-quality office space in this exclusive London district.
