Flexible office occupancy rates in central London have returned to pre-pandemic levels, according to a survey of the largest flex space operators in the capital undertaken by Knight Frank.
The majority (86%) of respondents said occupancy levels across their flex assets were currently above 60% – the pre-pandemic average in London. Of the companies surveyed 76% said clients use the office four to five days a week in varying capacities and 88% of clients said they intend to grow their office footprint or number of sites in the coming year.
Flex office operators said the key driver of demand this year has been financial services companies with tech companies also embracing flex space.
Amanda Lim, head of flexible offices at Knight Frank, said: “With availability of traditional office space in prime, well-connected City and West End locations limited, flexible offices have witnessed a post-pandemic surge from the sectors that have traditionally driven office demand in those submarkets.
“Companies of all sizes, from start-ups to larger established businesses, increasingly value the option to move straight into a workspace and easily upsize depending on headcount trends and how much their employees use the office. Flexible office providers also offer a range of amenities, including hospitality facilities, breakout areas and fitness features, that have helped companies attract their staff back to the office to enable the workplace synergy not possible with remote working.”
