The research predicts flexible workspace to account for 5.5% of Central London’s office market by the end of 2019.
Suggested Reading: “WeWork Becomes London’s Largest Office Occupier as UK Workspace Hits Record Growth” Cushman & Wakefield’s research found that since they publication of their last UK report, “Flexible workspace operators have accounted for the largest proportion of take-up in Central London”.
In 2018, for the second consecutive year, flexible workspace operators took up over two million square feet of office space.
Chusman & Wakefield estimates that “If letting activity progresses at the same rate for the remainder of 2019, flexible workspace take-up could well exceed two million square feet for a third consecutive year.” Decrease in Transaction Sizes According to the research report, WeWork is, in large part, to blame for the decrease in average transaction sizes between 2017 and 2018.
Central London’s Submarkets are Flourishing Cushman & Wakefield note that “The City Core has been the most active submarket since January 2018, with a total of 27 flexible workspace transactions totalling 691,570 square feet.” The City Core is closely followed by Canary Wharf, a submarket that was boosted by WeWork’s recent deal at 30 Churchill Place which accounted for nearly 290,000 square feet.
In Central London, “The continued leasing activity from flexible workspace operators has increased the overall stock of flexible workspace by 16%, with 12.95 million sq ft in operation at the end of H1 2019.” The proportion of flexible space compared to Central London’s total office market increased to 4.80% To put the above in perspective, the proportion of flexible space compared to Central London’s total office market increased to 4.80%. Bear in mind that Cushman & Wakefield’s previous report in late 2017 had estimated that flexible workspace would account for 5.5% of the Central London office market by 2022.
“The flexible workspace sector will account for at least 5.5% of total office stock in Central London by the end of 2019.” – Cushman & Wakefield, Coworking 2019: The Flexible Evolution Continues Unbalanced Growth While the UK flexible workspace industry has experienced significant growth over the past eighteen months, this growth has not been uniform across the region.