Desk rates and occupancy rates rose across the UK’s flexible workspace market in the six months to the end of March, according to new data from the Workspace Intelligence Network (WIN).
In London, prices increased by +2.1% with occupied private office revenue hitting an average of £174/sq ft, whilst occupancy was up 1.2% to 83.8%, with the West End and City Core running above 87% occupancy.
The flexible workspace market in London’s West End is now generating £220/sq ft per annum in revenue – 26% above the London average – and occupancy rose 2.3% in the six months to the end of March. In the City core, revenue also rose (3.4%) with occupancy up by 3.3%, demonstrating continued strength in core demand.
Outside London, the data paints a mixed picture in the UK’s key regional cities. Bristol has seen occupancy rise 8.4% in the six months to the end of Q2, while Birmingham has seen occupancy drop by 6.8%.
Jonathan Bevan, co-chair of WIN and CEO of Techspace, said: “The latest WIN data shows a flexible workspace market that continues to perform well, in London’s core markets but also across the UK. It’s also encouraging to see London’s Midtown beginning to recover as demand catches up with the significant increase in new supply delivered over the past two years.
“Reliable market data helps everyone make better decisions. By bringing together actual trading data from more than 35 operators, WIN is giving operators, landlords, lenders and investors a much clearer picture of how the market is performing, helping to support better decisions and the continued growth of the sector.”
Becky Gardiner, co-chair of WIN and director of partnerships at Fora, added: “What is most valuable about WIN’s data is the depth and granularity it brings to a market that has often lacked consistent, reliable benchmarks. This latest dataset shows clear strength in flexible workspace demand, particularly in London’s core locations, while the submarket and regional trends give unrivalled insight on a much more local level. For operators with a significant footprint in the West End, the strength of that market provides a much sharper evidence base for decisions on pricing, investment and future growth.”
