The average cost for a desk in the capital has reached £690 per month, an increase of 14% in comparison to last year. As such, the market for office space throughout London and surrounding areas has continued to grow.
Recently the number of requests for flexible office space has been on the rise and if recent demand is anything to go by, this won’t be slowing down anytime soon. Although average desk rates throughout the capital are £460 per month, the City of London and Westminster charge considerably more.
However, despite the fact the City of London and Westminster have the most expensive desk rates throughout the UK, over the last year they have also received the highest demand for flexible workspace than elsewhere in the UK. If you wish to rent a desk in Westminster, you’ll pay around £753 per month, while a desk in the City will cost approximately £747 per month.
Office Rates Throughout London
East London has also seen an increase in demand for flexible office options, with demand for space in areas like London Docklands doubling. A large part of this is that rent in this area will only cost you around £486 monthly, while you are still close to the City and Canary Wharf if needed.
There are various reasons why flexible workspaces are in such demand; however, Brexit and improvements in technology certainly play their part. The finance director at BE Offices, Simon Rusk, recently spoke to City CM telling them that advances in artificial intelligence and technology are allowing people to have more flexibility, hence them being more likely to seek office space on an ‘as and when’ basis. He likened office space to a music on Spotify, suggesting that property will soon be considered used on demand, only when you require it.
The Brexit Effect
We know that conversations are currently happening to try and help the UK reach an agreement before the upcoming Brexit deadline. HSBC recently announced that seven of its London based offices will be relocating to Paris at the start of next year. This will leave some industries nervous about what the future holds and therefore flexible workspace is becoming more appealing.
Why Flexible Workspaces?
Flexible office space allows people to commit to shorter-term leases. With so much uncertainly, companies will be reluctant to commit to longer-term leases. Instead, monthly contracts allow them the safety net, so should something like Brexit have an effect they can adapt their business accordingly.
Not only that, but many businesses also simply find this flexible approach better for their business. Flexible office options can be cost-effective and in many cases help to improve productivity. More people are working remotely or setting up a business to work for themselves and flexible office space can help to support this also.