London Flexible Office Space Report March 2022

London Flexible Office Space Report March 2022

Rubberdesk's Flexible Office Space Report examines actual flex office availability and pricing as well as trends in London. It gives prospective tenants the best snapshot of the whole market with which to start their search for offices.

Flexible Office Space Market Report 2022Today, the UK’s serviced office marketplace, Rubberdesk, published their Q1, 2022 Flexible Office Space Market Report which provides a comprehensive breakdown of the current supply and pricing of the Greater London coworking and flexible office market.

The report shows that between April 2020 and March this year, the amount of vacant office space doubled with a net 2.3 million sq ft of flexible space becoming available. Despite this significant increase, Rubberdesk predicts that as businesses seek to meet the needs of a hybrid workforce, the demand for flex space will rapidly grow.

“Businesses are keen to get teams back together, and have been looking for premium spaces where their staff can come to collaborate and achieve more than pure remote working. The most popular offices provide more than desks and chairs, they also create breakout spaces and environments in which teams can flourish.” Said Jim Groves CEO and Co-Founder of Rubberdesk

Further figures reveal that Central London is the most expensive city to rent an office at £742 per person, per month, followed by East London at £572, West London at £450, North London at £395, and South London at £300.

Though pricing remains at a national low, rates have remained steady over the past quarter suggesting that the market has finally bottomed out after almost two years of continuous price drops. Whilst restrictions have eased and rates are low, vacancy in the flexible space sector has remained high, with only a 2.2% decrease since the start of 2022.

Despite a challenging 2 years which has resulted in closures and consolidation, other coworking and serviced office operators have seized opportunities for national expansion. More than 15 new coworking spaces have opened or are set to open this year including The Office Group in Kings Cross, Kitt Offices in Covent Garden, and Citibase in Islington.

Key Findings:

  • High vacancy rates can be directly attributed to extended covid-lockdowns and the growth of hybrid work arrangements.
  • Central London has experienced the largest growth in flex offerings, with the majority of new centres opening in the past 2 years. This influx of new inventory brings the number of vacant flexible floor space to 3,181,850 sqft in Central London.
  • Median rates in East London currently sit at £572, nearing its pre-pandemic rate of £585. The most expensive area to rent an office in East London is in Wapping, with a median price of £824 per person.
  • Pricing in West London has remained stable in the past quarter after having dropped 18% since May 2020. Pricing in areas such as Hammersmith and Fulham are on the higher end, whilst in areas such as Ealing you can find premium offices at a lower price point.
  • North and South London have the lowest number of vacant flexible offices however with the upcoming opening of new flex centres, there will be greater choice for local businesses.

Download the full report

About Rubberdesk

Rubberdesk is the UK’s flexible office marketplace with thousands of fully furnished serviced offices and coworking desks ready for you to move in and rent by the month or year. Since having launched in the UK in early 2020, the Rubberdesk platform now encompasses over 7,000 offices, an estimated 6 million sq. ft. of space with a capacity for 115,000 people.

Rubberdesk’s proprietary platform combined with industry insights from their office specialists helps customers find the best office for their unique needs. With a view across all available options, they simplify the process to create a bespoke shortlist, arrange tours and negotiate the best deals. All for free and without obligation.

Rubberdesk also operates in Australia and Ireland.

Media Information

For further information, images and interview requests, please contact Laura O'Sullivan at Rubberdesk:

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