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London’s Flexible Workspace Sector Continues to Expand with Shoreditch/Old Street Experiencing 79% Increase in Desk Prices
LONDON, Feb. 26, 2024 /PRNewswire/ — Central London has seen growth in the flexible workspace sector, particularly in the areas of St James’s, Mayfair, and Shoreditch.
A Flexible Office Rental Price Report from world’s first flexible office broker Office Freedom property consultancy Carter Jonas, in collaboration with Carter Jonas, property consultancy, examines key drivers of the UK’s flexible office market. Findings from the report indicate that despite WeWork’s recent filing for administration, the flexible office industry remains well-positioned for growth.
In the capital, St James’s, Mayfair, Kensington and Fulham stood out as the highest cost districts in 2023, with average cost per desk amounting to £926, £834, and £725, respectively. However, these average costs vary between locations, with SE1, Liverpool Street, and Aldgate recording average rents of £448, £427, and £411, respectively. Notably, over the last three years, Shoreditch/Old Street has seen a surge in desk prices. The area experienced a 79%, from £371 in 2020 to £664 in 2023.
The lease term for flexible space has been on an upward curve in central London, moving from 347 days in 2020 to 438 days in 2023. Desk per deal analysis reveals that Canary Wharf has increased from 4.6 desks in 2020 to 17 desks in 2023.
Jon Posener, COO of Office Freedom said: “Growth in the flex industry has been due to managed office spaces. Landlords are now offering fitted, all-inclusive, self-contained spaces, on shorter-term deals which will lead growth at pace throughout 2024.”
Beyond the capital, other significant cities in the UK are also seeing a marked interest in flexible workspaces. Locations such as Reading, Aberdeen, and Cambridge are carving out significant niches in the flexible workspace sector. Supported by the opening of the Elizabeth line, Reading recorded a significant uptick in desk costs, from £190 in 2020 to £309 in 2023.
Richard Smith, COO of Office Freedom concluded: “The pandemic has undeniably acted as a catalyst, accelerating the transition towards flexible workspaces. Regardless of what happens with WeWork, there is now a large amount of established flex office operators who continue to grow.”
About Office Freedom:
Office Freedom is the world’s first flexible office broker, hosting the largest marketplace for offices across the world. It specialises in the serviced, managed and leasehold industries. OfficeFreedom.com
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