The City of London is the most active flexible office market in Europe, accounting for 13% of all office take-up in H1 2023, according to the latest research from Savills and its flexible office specialist Workthere.
Prague (8%), Amsterdam (6%), Madrid (5%) and Warsaw (4%) were the next most active markets, with flex offices accounting for 4% of total European office take-up during H1 2023.
Ed Bouterse, head of Workthere, Europe, and flex portfolio management, EMEA, said: “Across Europe, we are seeing the flex office sector bounce back from the pandemic as companies continue to focus on cost management while trying to secure the best available space. Overall, we believe flex office operator expansion will increase in 2024 to circa 5-8% of take up in Europe, once contract occupancy approaches the 85% mark.
“As a result of stable demand and higher occupancy, London, Amsterdam and Warsaw have reported 10% growth in flexible office desk prices year on year, and we are seeing costs in other European markets increase too for the same reasons.”
Mike Barnes, associate director, Savills European research, added: “Given employer hiring sentiment has shown signs of weakening over the last three to six months, flex contract occupancy growth will be supported by companies looking for flexible terms to ensure they optimise the right level of workspace.
“We are also seeing a shift in demand for best in class flex space, both for ESG reasons and to attract and retain talent which often includes a desire for an enhanced amenity offering.”
