Flex office demand more than triples since pandemic

Demand for flexible office space has increased by more than 200% in the UK compared to pre-Covid levels, with a 14% increase year-on-year in the first half of 2024, according to Workthere, a flex office listings site run by Savills. This increase was driven both by existing flex occupiers seeking larger workplaces and companies taking their first space to break into new markets. Over the first half of the year, flex occupiers constituted 24% of enquiries, up 12% year-on-year, while companies using flex space to enter new markets accounted for 18% of enquiries, an increase of 10%. In terms of the pricing, the average monthly cost for a private office desk in the UK reached £614 in H1, up by 3%. Growth was highest in London, where per-desk rates rose by 12% to £805. Several new office developments in London have driven the overall price growth of the market, according to Workthere, but older schemes have experienced a drop in occupancy. Tom Leahy, co-head of Workthere, said: “The strong increase in demand that we have seen is testament to the resilience that the flex market has shown over the last few years, indicating strong appetite and confidence in the sector. This increased demand is resulting in upward pressure on desk prices, especially for best-in-class space in London. “There has been an overall slight fall in occupancy, which is a reflection of the increasing size of the market and the growing polarisation against more secondary space. Leahy said that desks throughout the rest of the UK remained competitively priced as operators sought to retain occupancy against growing competition. He added: “We have also seen a need from operators across the market to pass on some of the rising costs they are facing to occupiers as a result of inflation, which is pushing up the desk prices. “In the second half of the year, we are expecting no let-up in the popularity of the flexible office market and continued delivery of exciting new schemes across the whole of the UK.” See how Savills compares with other agents with our On-Demand Rankings >> Photo © REX/Shutterstock