Take up of flexible office space hits highest levels since 2019

Research from Savills and its specialist firm Workthere claims that take-up of flexible office space from operators across the UK reached just over 1.06 million sq ft in 2024, which is the highest level since 2019 and 12 percent above the total reached in 2023. In line with this growth, Workthere suggests that transaction levels were also up 35 percent, despite a moderate drop in enquiries by 12 percent from a 2023 peak (based on a 2022 index).  There were also positive signs in the make up of demand with Workthere reporting a 7 percent increase in the number of businesses entering a new market and a 33 percent increase from businesses outgoing their current space.

The report also suggests that the number of enquiries resulting from a lack of satisfaction with their current space has doubled to over 10 percent reflecting a continued flight to quality trend as firms seek to attract and retain talent.

Tom Leahy, co-head of Workthere UK, comments: “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.”

Workthere reports that outside of London, private office desk pricing increased by 17 percent with the average at £384 per desk (per month). London was on par with 2023 at £776 per desk per month, and £209 per sq ft.

Contract lengths have also seen an encouraging increase rising by more than 20 percent in 2024 compared to the previous two years. Average contract lengths now stand at just under 16 months compared to 13 months in 2022.

Faith Robins, head of occupier advisory at Workthere, adds: “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.”