The demand for flexible office spaces has seen a substantial rise since pre-Covid times, highlighting a significant shift in workplace preferences.
- According to Workthere, there has been a 206% increase in UK enquiries for flexible office space compared to pre-pandemic levels.
- This surge in interest is driven by larger companies seeking spaces with over 20 desks and businesses entering new markets.
- The trend is contributing to a rise in desk prices, especially in London, where the cost for a private desk has increased by 12% year-on-year.
- Occupancy rates have slightly decreased, reflecting the expanding size of the flexible office space market.
The appeal of flexible office spaces has dramatically increased, with enquiries in the UK surging by 206% when compared to pre-Covid figures. This shift is attributed to companies seeking more adaptable work environments to accommodate a changing business landscape.
Interest primarily comes from larger occupiers requiring over 20 desks, as well as businesses establishing presence in new markets. These needs accounted for 24% and 18% of enquiries, respectively, in the first half of 2024. Meanwhile, the demand for swing and project spaces dropped to 13%, suggesting a long-term preference for flexible office arrangements.
In London, the cost for a private desk has risen to £805, a 12% increase from the previous year. This price growth is described as a ‘flight to quality,’ driven by high-end offerings that attract businesses seeking premium workspaces. Across the UK, the average desk price sits at £379, showing modest growth.
Despite the higher prices, occupancy levels have slightly fallen, with London’s flexible offices showing a decrease to 82% occupancy from 88%. Similar trends are noted across the UK, where occupancy dipped from 86% to 83%. This change indicates a burgeoning market with increasing space availability.
Tom Leahy of Workthere UK points out that although occupancy has declined, the sector’s resilience is demonstrated through continued demand and the expansion of new schemes. The average contract term in H1 2024 was 15.6 months, with more firms opting for 24-month contracts, signaling the integration of flexible office space into core business strategies.
The ongoing demand for flexible office space underscores its critical role in modern business strategies.
