According to a recent Knight Frank survey, a large number of property firms are considering growing their flexible office footprints in London in 2024 as space demand continues to rise. For the report, 25 landlords and operators in the capital — including British Land, Landsec and Landmark — were surveyed by the real estate consultant.
Although individual corporate replies were not disclosed, the survey indicated that 84% of participants increased the size of their flexible workspace in London during the previous year. Furthermore, the vast majority (96%) said they intended to increase the size of their portfolios in the sector in the upcoming year with West End appearing to be the most favored area.
The company also discovered that 88% of its venues had noted improvements in occupancy from year to year. Likewise, demand for tenants had increased as more businesses look for more flexible lease alternatives as they adjust to the post-pandemic hybrid work styles.
“Premium workspace operators have captured a growing market of nimble companies opting for more flexible leases in newer, personalized offices that remove various administrative hurdles and offer customer-centric amenities,” said Knight Frank’s UK Head of Flexible Offices, Amanda Lim. She also mentioned that “Businesses can also be based in prime locations, such as the West End, Bishopsgate and similar sought-after addresses, where securing long-term space remains challenging for some.”
Fitzrovia is among the most recent examples of where the industry has grown. Although the BBC is leaving Wogan House, the office building will be renovated and turned into a flexible workspace.
Meanwhile, the flexible office space operator Landmark Space — which caters to both larger and start-up companies — announced that it had signed a lease for 99 Great Portland St., which will open in the spring of 2024.
