The Coworking Boom is Reshaping the London Office Market

The Coworking Boom is Reshaping the London Office Market

updated July 8, 2019

The rapid growth of the flexible office and coworking markets over the last five years is evident, with more than 4 million sq. ft. of space leased to flexible office providers in Central London, according to a new report from Hubble in partnership with JLL.

Although WeWork often dominates the headlines, the London market remains highly fragmented, with more than 150 providers offering some form of flex or coworking space in more than 650 separate locations.

At the end of 2018, flexible offices had a 6.3 per cent share of the Central London market (14.7 million sq. ft.) and this figure is set to keep growing. By 2023, flexible offices are projected to grow to an 11 per cent share of overall office stock in London.

The report analyses areas which have seen the highest demand, and in turn increases in prices, and where tenants can secure cheaper space. Temple has seen the greatest increase in cost per desk (69 per cent) between 2017 to 2018. The regeneration of Victoria has been reflected in desk price with an increase of 30 per cent, closely followed by Hoxton (25 per cent) and Marylebone (25 per cent).

Elaine Rossall, Head of UK Offices Research & Strategy at JLL, said:

“The flexible office market in Central London is by far the largest and most developed in the UK. The sector has seen its footprint expand rapidly over the five years from 2013, increasing by 26 per cent per annum, compared to just 9 per cent per annum in the previous five years. Looking forward, we anticipate that the sector will expand further, in response to growth in demand from larger companies and changes to the way we work – we estimate that by 2023 it will account for 11 per cent of the office stock.”

 

 

Original Source: Workplace Insight

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