Latest Flex Office Market Insights: UK Flexible Office Space Report - Q3 2023

London Flexible Office Space Report - June 2023

London Flexible Office Space Report - June 2023

Rubberdesk's Flexible Office Space Report examines actual flex office availability and pricing as well as trends in London.

Our Flexible Office Space Market Report for London provides a comprehensive breakdown of the current supply and pricing of the Greater London coworking and flexible office market.

"We have seen a significant shift in the London Flex office market this year. There are more locations available, greater variety and in some cases, very favourable rates." said Mr. Jim Groves, CEO at Rubberdesk. “Location and Desirability are top of Tenants’ wish lists as they move to smaller but more engaging workspaces for teams.”

Desk Rates Slide 2% in London as Inventory Surges 26%

Greater London Office Space Price & Availability Statistics - June 2023

On the back of an increase in new inventory resulting from a range of new buildings and existing operators adding more inventory to Rubberdesk, available space increased 26% while the number of offices increased 17% to 3,929 offices, the largest increase in supply since 2020. This new supply in combination with softer economic conditions led to a 2% drop in the monthly average desk rate from December 2022 to £622.

Greater London Office Space Price & Availability Trends - June 2023

The charts above highlight the median price of office space per person per month and the vacant flexible office space in sq.ft. across greater London up to June 30, 2023

Central London continues to lead the premium office market with median monthly prices of £695 per desk, driven largely by high-demand areas in the City of London such as Mayfair, Marylebone, King's Cross, and Holborn, and a flight to quality trend as businesses seek desirable workspaces to bring teams together.

Greater London Office Space Price by Region - June 2023

While South and North London continue to provide the best value with a median desk rate of £240 and £350 per person, inventory and variety of quality are limited.

Greater London Office Space Price by Office Size - June 2023

Though desk rates were down across most larger office sizes, smaller spaces for teams of 5-15 rose 1% to £589 and £597 respectively.

Source: Rubberdesk July 1, 2023

Rates in Central London Hold due to Higher Demand

Central London Office Space Price & Availability Statistics - June 2023

As the largest region in London, Central London encompasses Victoria in the West to King's Cross in the North and Southwark in the South giving businesses the widest variety of office space including size, quality, and price points of anywhere in the UK.

Central London Office Space Price & Availability Trends - June 2023

The charts above highlight the median price of office space per person per month and the vacant flexible office space in sq.ft. across Central London up to June 30, 2023

Though desk rates across the region fell 1% to £695 per desk, it was a different story in high-demand areas which saw rates increase 5% in Mayfair and a whopping 40% in Marylebone to £925 and £780 per desk respectively. Other areas faired less well with desk rates in Victoria down 20% to £650 per desk followed by Fitzrovia and Holborn which were both down 10% to £750 and £676 while SOHO fell 5% to £807 per desk.

Central London Office Space Price by Suburb - June 2023

With over 3.4 million sq. ft. of available flexible office space, an increase of 30% since the start of the year, larger businesses looking for a location to bring the team together have more options than ever with enterprise offices for 50 or more staff up 38% while rates per desk fell 7% to £759. Smaller offices for teams of 5-15 remain saw slight price increases to £684 and £674 per desk.

Central London Office Space Price by Office Size - June 2023

Source: Rubberdesk July 1, 2023

City of London Office Rates Remain Near All-Time Low

City of London Office Space Price & Availability Statistics - June 2023

As the market continues to weather challenging economic conditions, desk rates throughout the City of London fell 3% to £679 as inventory climbed 37% to 952,900 sq. ft.

City of London Office Space Price & Availability Trends - June 2023

The charts above highlight the median price of office space per person per month and the vacant flexible office space in sq.ft. across the City of London up to June 30, 2023

Offices near the East side of the city near Liverpool Street station and Tower Hill continue to attract a premium price with a median desk rate of £732 and £725 per desk, while businesses looking to save can find more affordable office space further West near Farringdon and Chancery Lane stations with median prices at £552 and £550 per desk.

City of London Office Space Price by Station - June 2023

While prices fell across most office sizes, desk rates for 10-15 person offices rose 4% to £676 per desk even though inventory grew by 36%. Businesses needing more space will find more options than ever as the amount of available space for teams over 50 people jumped 50% to 445,150 sq. ft. on the back of a 7% decrease in price to £732 per desk.

City of London Office Space Price by Office Size - June 2023

Source: Rubberdesk July 1, 2023

Desk Rates Hold in East London Despite Increasing Supply

East London Office Space Price & Availability Statistics - June 2023

Despite some volatility in Q1, prices in East London ended the 2nd quarter where they started at $450 per desk per month. However, not all regions are created equally. While rates in Shoreditch and Wapping were up 30% and 13% to £762 and £621 per desk, office rates in Spitalfields, one of the more in-demand areas of East London, were down 10% to £565 per desk.

East London Office Space Price & Availability Trends - June 2023

The charts above highlight the median price of office space per person per month and the vacant flexible office space in sq.ft. across East London up to June 30, 2023

With quick access to the city centre via the Elizabeth line, Whitechapel and Canary Wharf continue to provide great value with monthly desk rates of £490 and £432 per person respectively.

East London Office Space Price by Suburb - June 2023

Across the board, smaller offices for 1-4 people saw a 24% price decrease to a median rate of £375 per desk while larger offices for teams of 50 people saw a 7% decrease to £496 per desk per month from the start of the year.

East London Office Space Price by Office Size - June 2023

After falling for most of 2022, available space gained 14% to end the half-year at 527,500 sq. ft.

Source: Rubberdesk July 1, 2023

Rates in West London Hold as Inventory Climbs 40%

West London Office Space Price & Availability Statistics - June 2023

Unlike other regions of London, desk rates in West London have been relatively immune from pandemic lockdowns and economic factors remaining relatively flat over the past two years.

Despite a 40% increase in supply to 353,700 sq ft, desk rates for offices climbed 0.6% to £475 per desk primarily due to a number of higher quality offices coming onto the Rubberdesk marketplace.

West London Office Space Price & Availability Trends - June 2023

The charts above highlight the median price of office space per person per month and the vacant flexible office space in sq.ft. across West London up to June 30, 2023

Fulham and Hammersmith saw price increases of 22% and 9% to £550 and £541 since the start of the year while Hounslow and Hillingdon saw decreases of 8% and 6% to £329 and £310 per desk.

West London Office Space Price by Suburb - June 2023

Larger offices for teams of 26 to 50 saw the largest price increase, up 7% to £587 per desk while prices for smaller offices for teams of 5-15 fell 9% to a median price of $390 per desk.

West London Office Space Price by Office Size - June 2023

Source: Rubberdesk July 1, 2023

South London Offers Lowest Prices for Small to Mid-Sized Businesses

South London Office Space Price & Availability Statistics - June 2023

With inventory up 24% and prices down 9% since the start of 2023, there's never been more opportunities for businesses to find a new home in South London.

South London Office Space Price & Availability Trends - June 2023

The charts above highlight the median price of office space per person per month and the vacant flexible office space in sq.ft. across South London up to June 30, 2023

The Burroughs of Merton and Sutton continue to provide the most options with rates at £222 and £213, well below the regional median of £240 per desk. Greenwich saw the largest price decrease dropping 37% from £580 to £367 per desk. Finally, Wandsworth also provides great options, especially for larger teams of 16 or more with a median price of £350.

South London Office Space Price by Region - June 2023

While options for larger teams of 25 or more are limited, South London is an ideal location for a smaller office for teams under 15 with with prices down as much as 15% since the start of the year. In fact, with a median rate of £232, some of the best deals can be found for offices of teams of 5-10 people.

South London Office Space Price by Office Size - June 2023

Source: Rubberdesk January 1, 2023

Desk Rates in North London Fall 9% in 2023

North London Office Space Price & Availability Statistics - June 2023

With prime locations like King's Cross close to Central London, North London provides the best of both worlds for businesses looking to be close to the city without the hefty prices.

North London Office Space Price & Availability Trends - June 2023

The charts above highlight the median price of office space per person per month and the vacant flexible office space in sq.ft. across North London up to June 30, 2023

Though the amount of vacant space has remained relatively flat we have seen a 21% increase in the number of offices available as operators react to a change in demand breaking up some of their larger offices into smaller spaces. Rates in Hackney dropped 14% to £536 per desk while desk rates in Islington climbed 17% to £350 per desk.

North London Office Space Price by Suburb - June 2023

Harrow and Brent in North West London offer the most economical options for businesses to set up a secondary office for teams of 1 to 70 at a median rate of £125.

North London Office Space Price by Office Size - June 2023

Source: Rubberdesk July 1, 2023

Download the full report

Download the Full June 2023 Report

Click here to download the print-friendly report.

Methodology

  • All prices presented in this report are based on the median rate for a location or office size across an entire month
  • Availability is based on the inventory inside the Rubberdesk platform and includes coworking desks and available offices that hosts share with Rubberdesk
  • Actual Flex office availability may be higher as not all hosts share 100% of their unoccupied office space with Rubberdesk

Our Price Guides

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 5,500 offices, an estimated 5 million sq. ft. of space with a capacity for over 95,000 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 provides Flex Powered by Rubberdesk for commercial agents across the UK.

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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