London-based prop tech firm observe increased demand for flexible office space

A London-based prop tech firm powered by Savills, has observed increased demand for flexible office space following recent research.

Workthere, founded by Cal Lee in 2016, helps startup and scaleup clients, as well as their existing corporate client base, with their flexible workplace needs.

Flexible office occupancy levels in London reached an average of 90 per cent in H222, which represents a 71 per cent year-on-year increase. Flexible office operators in the regional markets have also seen occupancy levels climb from 68 per cent at the end of 2021, to 88 per cent in H222.

The flexible office specialist has seen this increase in demand reflected in its own UK enquires which are up 72 per cent year-on-year, and 158 per cent higher than pre-Covid levels.

Cal Lee, global head of Workthere, said: “The recovery that we have seen in the flexible office sector since 2021 has been phenomenal and has predominantly been driven by occupiers looking for quality, flexibility and a diverse workspace that can meet the needs of their talent base.

“The continued rise in demand for flexible office space has resulted in good quality stock in particular becoming more constrained as occupiers contest for the best space. This has also generated more competition in the market with an uplift in desk prices and a decrease in discount levels from providers.”

Workthere’s research also shows that the increased demand for flexible office space has resulted in upward pressure on desk prices with the average cost of a private desk up 24 per cent year-on-year to £549.

This is reflected in both London and the regions which show a respective rise of 27 per cent (£674) and 37 per cent (£416) in H222, compared to the same period during the previous year. Workthere notes that this pricing is indicative of how much more limited the stock is in the regions compared to London.

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