Take-up in London from flexible office operators is expected to hit 1m sq ft by the end of 2023, with a rise in occupiers looking for space that will encourage staff back to the office, according to CBRE.
In the agency’s latest flex market report, it said it had acted on acquisitions or renewals of some 350,000 sq ft across the capital by the midway point of this year. The second quarter saw an “increase in requirements from corporate occupiers driven by businesses mandating their staff return to the office”, it added.
“Demand for flex is continuing to grow, not just in the capital but in other major UK cities, with more activity being recorded in both Manchester and Birmingham,” the report said. “This has prompted London-based operators to explore new sites across the whole of the UK to meet the increasing demand from occupiers.”
Top desk rates in the cities outside of London analysed by CBRE range from £120 a month in Bristol to £180 in Edinburgh, with London rates as high as £400. In the capital, rates are rising in Soho as well as Mayfair/St James’s but falling in Shoreditch and Whitechapel.
The firm singled out Leeds as a “market to keep a close eye on”. “Leeds is a city that is on the rise, but the demand for high-quality flex space is currently higher than the supply available,” it said.
“Demand from occupiers continues to grow and in many markets is outstripping current supply levels,” said Michael Glynn, CBRE’s head of flex for the UK. “In turn, we’re seeing operators across the UK looking to expand their footprints to keep up with this activity. Established providers alongside new-market entrants, and increasingly the landlord community, are accelerating the growth of the sector and providing more choice to tenants than ever before, especially at the premium end of the market.”
To send feedback, e-mail tim.burke@eg.co.uk or tweet @_tim_burke or @EGPropertyNews
