November 27, 2018
Coworking and creative sectors help boost London office space
Take-up of office space in Central London has shown a year-on-year increase of 30 percent, reaching 1.3m sq ft in October, according to CBRE. Take-up was strong from creative firms, representing 18 percent of all deals, including the largest deal of the month which saw McCann Erickson take 146,400 sq ft at 135 Bishopsgate EC2. Flexible office operators took 122,300 sq ft of space during the month, bringing the proportion of take-up represented by the flexible office sector in the last 12 months to 19 percent. The largest flex acquisition in October saw Landmark Spaces acquire 37,800 sq ft at Portman House in the West End. (more…)
The level of demand for UK commercial property remains strong, despite continued lack of clarity over Brexit. According to the latest GVA review of commercial property investment market, European investors were more risk averse to the UK market because of the uncertainty caused by Brexit but demand from overseas investors, particular from China and the Far East, strengthened in 2018. Domestic investors have also made a ‘come-back’ to the UK market and have accounted for approximately 12 percent more acquisitions in 2018, compared to the previous year. In the North East, the lack of availability of investment property is one of the biggest factors affecting growth and there remains strong competition, particularly for prime well let assets. Regardless of political uncertainty, the fundamentals of the UK commercial property market will continue to make it an attractive place to invest, with London remaining the number one priority target of investors outside of Europe. Overall, the report concludes, the UK commercial property market will remain attractive with the exception of retail.
Investment in City of London offices is up by 7.6 percent for the same period last year reaching £9.47 billion as of the end of October 2018 – while the West End market is on track to reach at least £7.4 billion before the year is out. This is up on the £7 billion turnover seen in 2017, according to Savills. Stephen Down, executive director and head of Savills Central London investment team, says: “Demand for central London offices has remained buoyant throughout 2018. While we may not see the year set any new records, annual volumes look set to either surpass or draw very close to those of 2017. 
The gig economy has helped lead to the doubling in size of the flexible office space sector since 2014 and it’s set to grow by up to 30 percent per year over the next five years claims new research published by JLL. Disruption or Distraction, a report delving into the growth of flexible office space across Europe explores the main drivers of the sector’s boom – including evolutionary changes in how, when and where people work, shifts in lifestyle, and rapid advancements in technology – and provides unique insights into the risks and rewards for both companies and real estate investors in Europe. 
November 23, 2018
Communities are the key factor to rapid growth of coworking
by Petr Boruta • Comment, Coworking, Property, Workplace design
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