The flexible workspace sector enjoyed a 13% increase in turnover and was home to around 11% more workers in 2015 and 2016, according to research by the Business Centre Association and CBRE.
The sector is worth around £3.3bn in terms of turnover, up from £2bn in 2013, despite initial fears about the impact of Brexit on the sector and increasing competition from new entrants into the market.
The UK Business Centre Market report surveyed 580 business centres, representing 23% of the sector across the country, to assess the current state of the market.
Overall, the report found the UK-wide business sector is now home to 93,000 individual small businesses which employ over 480,000 people, supporting around £18bn of GDP.
The research comes amidst a flurry of recent acquisitions and new entrants into the market.
In June 2017 alone, Blackstone has acquired a majority stake in BCA member The Office Group, while Carlyle Group has made three acquisitions to boost its “Uncommon” flexible workspace venture.
British Land have also launched Storey, a new flexible workspace concept.
The report also found:
■ The amount of space taken by businesses per worker in a business centre has fallen by 8% year-on-year between 2013 and 2016.
■ 74% of businesses in business centres have five employees or fewer.
■ 39% of businesses stay in business centres for more than three years, up from 14% in 2013, providing further evidence that the sector is seen as a long-term option for those seeking flexible workspace for their business.
More than 90 new centres opened in 2015 and 2016, providing a home for thousands of new and growing companies.
The report suggests that this trend will continue regardless of Brexit, as more people take advantage of the terms, services and technology provided by business centres.
As part of the report, 38% of operators sampled said Brexit had a slightly negative impact on their business, 34% of operators sampled said it had no impact and 20% said it had a positive impact.
While it was felt there was an initial pause in activity after Brexit, demand for space has recovered.
Miles Gibson, head of UK research at CBRE, said: “Our annual survey of flexible space providers confirms that the workplace is now changing very rapidly.
“Business centres are turning the very idea of the office upside down, and their model is proving very attractive, with growth in customers averaging 28% each year between 2013 and 2016.”
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