New research predicts substantial growth in global flexible office market

The flexible workspace trend is on the rise, not only in London but all over the world, with predicted growth of no less than 18% in 12 months. In central London, a desk will cost anything between £500-£1100 per month. The Instant Group – a flexible workspace specialist – has found that New York City remains the most expensive place in the world to rent a desk on a flexible basis, with San Francisco and Chicago following closely behind. London, one of the most expensive cities in the world, is also included in this top tier.

These main cities, and their constant supply of new offices, show healthy growth rates; in the last 12 months there has been an average increase in supply of around 16%. There has also been an increase of 12% in desk rates, as the occupier demand for space remains strong.

WeWork – a major player in the serviced office industry – has recently taken the world by storm. Just after launching a new space in the South Bank, London, building there are now talks for taking up a whopping 100,000 sq ft in Hammersmith.

Independent research from Knight Frank predicts that industry growth in London will reach 16% between 2015 and 2016. In Central London, the office market accounts for 4% of the total office stock.

Eugene O’Sullivan, London’s leading Chartered Surveyor and Managing Director at Morgan Pryce, says; “The 21st century is the ‘start-up generation’. More often than not, start–ups and small businesses can’t cough up the hefty deposits required by landlords, and are therefore attracted to flexible offices”.  

With an average growth rate of 20% across the emerging markets in the UAE and Asia-Pacific regions, the new markets for co-working are showing greater proportional growth than the larger, more established cities such as New York and London.

O’Sullivan explains; “The world has become agile, fast-paced and younger; the flexible workspace ‘trend’ suits our current market.”

This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.