Take-up of flexible office space across the UK reached just over 1.06m sq ft in 2024 – the highest level since 2019 and 12% above the total reached in 2023, according to new research from Savills and its flex office specialist Workthere.
Transaction levels were also up 35%, despite a 12% drop in enquiries from a peak in 2023. Workthere reported a 7% increase in the number of businesses entering a new market and a 33% increase from businesses outgrowing their current space.
The number of enquiries resulting from a lack of satisfaction with occupier’s current space doubled to more than 10% reflecting the continued flight to quality trend.
Outside of London, private office desk pricing increased 17% with the average price per desk per month reaching £384. In London, pricing remained on par with 2023 at £776 per desk per month.
Contract lengths rose by more than 20% in 2024 compared with the previous two years with average contract lengths now standing at just under 16 months compared with 13 months in 2022.
Tom Leahy, co-head of Workthere UK, said: “2024 reflected a year of stability for the flexible office sector with take-up remaining robust across the board from operators. Whilst demand was down at a headline level, this appears consistent with the wider office market, and the fact that transactions increased demonstrates an improved quality of demand over the course of the year. In addition, we saw pricing remain stable in London with growth across the regions.”
Faith Robins, head of occupier advisory at Workthere, added: “All in all the flex market is well set to perform healthily this year with good underlying fundamentals off the back of significant growth in many areas relating to contract length, desk price and take up. We expect the market will continue to evolve this year with operators and landlords offering a greater diversification of products and amenities for customers.”
