London Flex Office Space Report
Despite the well reported problems with WeWork, the largest private tenant in London, take up of flex space (which covers coworking space, serviced offices and centres that have both shared and private space) is still high. A recent Guardian article discussing the problems suggests this is partly due to “office space (being) undersupplied and in demand”. M&G Prudential noting in the Financial Times, that this supply could remain limited “over the next four to five years” have recently bought a development site nicknamed ‘Gotham city’ at 40 Leadenhall. Adding to the 3 existing buildings will be a 34-storey skyscraper and one 14 storey providing more grade A offices.
During 2019 flexible workspace made up over a third of commercial property transactions in the capital. In fact research by CBRE, looking at the 10 largest cities in Europe puts London as the European capital of flexible offices and co-working with taking over 5% of total London office stock.
According to JLL’s Western Corridor Office Market Report 2019 the growth in flex space has contributed to the growing trend of Cat A+ office fit outs which are a fit-out standard sitting between existing Categories A and B, with a Category A fit out providing just basic and essential works and Category B filling an empty space with a customer’s personal requirements. Cat A+, a more speculative fit out, is seen by landlords as new way to market property and attract talent.
