The fastest way to improve hiring outcomes is to reduce friction in how people work. Location does that. Pay a little more for the right address and the returns show up in productivity and momentum, not vanity.
Why does paying a premium for Old Street often pay back in productivity?
Old Street commands higher rents, but the talent math is compelling. McKinsey authors estimate a median S and P 500 company loses about 480 million dollars each year to skill, will and time gaps.
Their research shows top performers in critical roles deliver up to 800% more output than average peers. A premium location that pulls in and keeps these people is not a luxury, it is leverage.
The right setting narrows all three gaps. Skill improves through dense peer networks, faster feedback and easier access to learning. Will rises when people feel proud of where they work and can do their best work without friction.
Time is saved when layouts, tools and proximity make meetings shorter, decisions faster and context switching rarer. McKinsey also links strong performance cultures to three times the total shareholder returns of unhealthy ones.
Key points to consider are:
- Lost productivity is massive according to McKinsey authors Bryan Hancock, Bill Schaninger and Brooke Weddle who estimate a 480 million dollar annual hit for a median firm
- Superstar effects are real with top performers producing up to eight times more in critical roles according to the same McKinsey research
- Premium environments close the skill gap through better collaboration, learning access and network effects that Old Street offers
- Engagement lifts in high quality space which helps close the will gap and reduces the risk that star talent disengages and leaves
- Decision velocity rises when teams co-locate in well-designed offices which helps close the time gap and cuts meeting waste
Why does location quality change the hiring equation for startups?
Startups enter the market with a pay handicap. Research reports that startup employees typically accept about 17% lower pay in exchange for non-monetary benefits. That trade is fragile when the work experience feels second-rate. A premium Old Street office shifts the value equation.
It upgrades the daily environment. It compresses commute times for target talent pools. It embeds teams in a visible hub that signals momentum. It also expands informal learning and serendipitous connections that high-ability candidates value. In short, location becomes part of the employee value proposition rather than a cost line.
The stakes are highest for early joiners. J. Daniel Kim finds that losing non-founder employees in year one creates large negative effects on hiring and revenue that persist for at least a decade. That is hard scarring.
Firm-driven search can help lesser-known startups find candidates yet it often raises churn risk. Premium space acts like retention insurance. Better amenities, shorter trips, and community density make it easier to say yes and to stay. When you are asking people to accept lower cash, the experience must carry more weight.
Location also raises the odds you land and keep the outsized performers mentioned earlier. If these highly productive people are not recognized, they will disengage and leave. A standout Old Street setting signals standards, supports faster decisions, and makes recognition tangible.
It feeds the kind of strong performance culture that generates superior shareholder returns. In a market where large firms crowd out startups on salary, proximity and prestige are practical levers.
How should you time and target the Old Street premium?
Old Street Grade A rents run £70 to £77.50 per sq ft versus £55 to £70 for Grade B, based on Area’s London rent breakdown. That is a 20% to 30% uplift. The spend should track growth stage and role criticality.
Treat the office as talent infrastructure that removes meeting friction, improves cross-team flow, and speeds decisions.
Calibrate the premium by impact, not headcount. If product, engineering and go-to-market leaders must align daily, upgrade the space those people use most. For an 8,000 sq ft footprint, stepping up from Grade B to Grade A can add roughly £80,000 to £180,000 a year.
Reducing slow meetings and decision lag can repay that through faster launches and higher win rates. Area also notes a flight to quality, with limited Grade A supply supporting this focus.
Key moves that turn rent into performance are:
- Early-stage focus on collaboration density and flexible project zones
- Series A to B anchor a central hub near transport to cut commute time variance
- Prioritise rooms designed for decisions with reliable AV and clear ownership
- Right-size meeting ratios and add stand-up spaces to shorten cycles
- Create adjacency between product, design, engineering and revenue teams
- Provide quiet pods to protect deep work alongside high-energy zones
- Use data on meeting length and cycle time to iterate the layout
How ADAPT turns the Old Street premium into performance
The article surfaces a simple truth: lost output comes from friction-skill, will, and time gaps. Startups feel it most when early hires are on lower cash and high expectations.
Paying a premium for the right Old Street address only pays back if it’s targeted to the roles and rituals that drive collaboration and decision speed. That’s where ADAPT steps in as your 360° office partner.
We translate the problem into a practical plan. Our AI captures your requirements and delivers a curated Top 10 of spaces in minutes. Then we calibrate spend by impact and stage, not headcount-prioritising the rooms, adjacencies, and commute radius that matter for your critical teams:
- Focus Grade A options near transport to cut commute variance and boost attendance
- Design-for-decisions with reliable AV, clear ownership, and right-sized meeting ratios
- Create high-collaboration zones plus quiet pods to protect deep work
- Place product, design, engineering, and revenue teams in smart proximity
- Use flexible terms and off-market choices to de-risk commitment and scale as you grow
With 20+ years’ expertise and strong provider relationships, ADAPT secures exclusive deals and builds offices that act like talent infrastructure-spaces that raise engagement, accelerate decisions, and make it easier for high performers to say yes and stay.
Location is leverage when it removes friction. Our job is to aim the premium at the moments that matter-so the office becomes a multiplier for hiring, focus, and decision velocity.
Chris Meredith, ADAPT CEO & Founder
What can you do to get ahead of the Old Street premium?
If you’re hiring for mission-critical roles, battling slow meetings, or stuck in a lease that no longer reflects how your team works, now is the time to move. The right flexible space doesn’t just function better-it signals momentum and helps you win and keep the people who drive 8x impact.
ADAPT can help you find a smarter, perfectly fitted Old Street (and wider London) office and set you up with the best solution for what’s next. Explore how ADAPT can help you move into a space that fits your ambition, not just your headcount.
