Demand for flexible office space in London rose by 40% in Q1 2025 when compared with the previous quarter, with the City and Southbank markets seeing demand increase by more than a half.
London’s West End still leads with the greatest volume of stock available and the highest average rents, the latter of which tents to come at a 15-20% premium above the wider average for the capital, according to research by Savills’ flex business Workthere.
While the West End saw an increase in demand of 39%, the City and SE1/Waterloo areas saw greater jumps, with 77% and 67% increases when compared with the previous quarter, while Midtown saw a more meagre increase of 17%.
Average rents now range from £150-£240 per sq ft, while the average deal size is for 2,000-4,000 sq ft.
Dan Brown, director at Workthere, said: “The strong increase in demand that we have witnessed during the first quarter of this year is indicative of the strength of the flexible office market as it continues to mature. The heightened demand is putting upwards pressure on desk prices, especially for the best space, but there’s a solid pipeline of supply as more landlords look to offer flexible solutions.
“Q1 is always a busy time for the flexible office market because it coincides with the setting of businesses’ budgets, which typically run to either December or March. We would expect to see the strong demand continue into the rest of H1.”
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