The number of enquiries for flexible office space has increased by 206% compared with pre-Covid levels, according to new data published by Workthere.
The flexible office specialist reported a 14% year-on-year increase in the number of enquiries in H1 2024, with demand fuelled by occupiers looking for larger workplaces and companies establishing themselves in new markets.
Swing space and project space requirements accounted for only 13% of enquiries in the first six months of 2024, down from 20% in H1 2023.
The average cost of a private desk in London rose 12% year-on-year to £805, with pricing across the rest of the UK at £379 per private desk – marginally up on H1 2023 figures.
Workthere’s research found the average contract term length in H1 2024 was 15.6 months, which is up 27% year-on-year, with a notable increase in companies seeking 24-month contracts.
Tom Leahy, co-head of Workthere UK, said: “The strong increase in demand that we have seen is testament to the resilience that the flex market has shown over the last few years, indicating strong appetite and confidence in the sector. This increased demand is resulting in upward pressure on desk prices, especially for best-in-class space in London. There has been an overall slight fall in occupancy, which is a reflection of the increasing size of the market and the growing polarisation against more secondary space.
“Desks throughout the rest of the UK remain competitively priced as operators seek to retain occupancy against growing competition. In addition, we have also seen a need from operators across the market to pass on some of the rising costs they are facing to occupiers as a result of inflation, which is also pushing up the desk prices. In the second half of the year, we are expecting no let up in the popularity of the flexible office market and continued delivery of exciting new schemes across the whole of the UK.”
