UK Flexible Office Space Report - March 2023
Rubberdesk's Flexible Office Space Report examines actual flex office availability, pricing and trends across the UK up to March 2023.
See our January 2024 London Flexible Office Space Report for more up-to-date insights on the latest London Flex Office Market.
While London represents the lion's share of Flexible office space, the rest of UK still makes up a quarter of current supply. This report examines London and major markets outside of Greater London to get a feel for what's happening across the rest of the UK.
The size and structure of the UK Coworking and Serviced (Flex) Office can, in effect, be broken down to two separate markets 1) Greater London & 2) everything else. With London making up 75% of the available Flex Office space across the UK, it heavily skews the monthly rental rates & available space.
The following report looks at the cost and availability of flexible office space in key cities outside London. Please visit our Dec 2022 London Market Report for analysis of rates across Greater London.
“While London has seen prices recover, rate changes across the rest of the UK have been a bit of a mixed bag. Markets such as Leeds and Newcastle have recovered and moved past the pandemic, others like Manchester & Birmingham have only seen glimpses of improvement with prices remaining well below pre pandemic rates,” said Jim Groves CEO and Co-Founder of Rubberdesk.
Economic Uncertainty Dampens Flexible Desk Rates Across UK
After hitting a low in Q3 2022, the desk rates in a flexible office (coworking, serviced, or managed) rose for a second straight quarter by 1.1% to £480 per desk while the available supply gained 14.1% quarter over quarter. Despite this increase, desk rates still remain 31% below pre-pandemic levels.
When it comes to flexible office rates, the final price is often impacted by the location, grade of building, number of desks and amenities included as part of the offerings. Desk rates for smaller offices for 1-10 people outside London can often be found for less than £300 per desk while larger offices for teams of 50 or more will attract prices over £400 per desk due to the extra amenities.
With the exception of Cambridge, which has rates closer to those found in London, desk rates are up to 67% cheaper outside London with Manchester priced at £383 per desk while the desk rate in Cardiff is £205 per month. In Scotland, a desk in a private office will set you back £352 in Glasgow and £300 in Aberdeen and Edinburgh.
Source: Rubberdesk March 2023
London: New Supply & Uncertain Times Push Rates Down
Despite an increase in Q4, desk rates for flexible office space in London fell 1% to £630 per desk per month while vacant space climbed 16.8% to 4,166,200 sq. ft. as a result of new inventory from Fora, Kitt & The Space as well as other operators.
While pockets of London have seen desk rates rise, the long term trend has been steady and downward.
Like many large global cities, desk rates in London vary by location and building grade. Median rates in Central London for example attract a desk rate of £700 compared to £475 in West London and £445 per desk in East London. For businesses happy to be located outside the city centre, desk rates in North and South London are an attractive option at £375 and £288 per desk.
With almost half the available Flex office space targeting teams smaller than 10. This segment offers space across all areas of London at a median rate of £599 per desk while spaces for larger teams requiring between 50 to 400 desks will cost ~£700 per desk due to the extra amenities and private breakout spaces. Location, also plays a role with enterprise offices in Central London in excess of £787 per desk.
Visit our Central London Office Price Guide and East London Office Price Guide for specific desk rates on regions within London.
Source: Rubberdesk March 2023
Manchester: Desk Rates Rise 3%
After hitting a low in June 2022, desk rates for flexible office space continued their upwards trajectory to reach £383 per desk, a 2.7% increase. The quarter-on-quarter data shows a 13.9% rise in vacant space, totaling 329,150 square feet, driven by the addition of new offices in the City.
The majority of available inventory is concentrated in Manchester City, offering a diverse range of office sizes. Offices in Old Trafford and Salford are also available along with limited options in Rochdale, Bury, and Bolton. Prices for these locations vary, ranging from £175 per desk in Bury to £525 per desk in Rochdale.
As the second largest Flex market in the UK, following London, Manchester boasts a wide variety of offices suitable for businesses of all sizes, including those in need of over 100 desks. Larger offices typically offer additional features, such as private whole floors, meeting rooms, and private entrances, which cater to the needs of larger businesses. As such prices average £430 per desk for enterprise spaces.
Visit our Manchester Office Space Price Guide for more details on the Greater Manchester region.
Source: Rubberdesk March 2023
Greater Birmingham: Vacant Flex Space Grows 12%. Prices Hold.
Despite desk rates bouncing sporadically throughout the last half of 2022, rates in Birmingham are trending flat at a rate of £365 per desk.
On the supply side, new inventory with 11-25 desks contributed to a 12% increase in overall space, quarter over quarter.
Rents vary by location as might be expected, with the City centre ~£369 per month, compared to £198 in Wolverhampton, and £175 in Dudley.
Regardless of preference, businesses of all sizes will find a full range of spaces available, from the smaller 1-10 person office with a median price of £350, to larger enterprise-style offices with additional amenities for teams of 50 to 120 plus, at a slightly higher median price of £464 per desk.
Visit our Birmingham Office Space Price Guide for more details on the Greater Birmingham region.
Source: Rubberdesk March 2023
Leeds: Desk Rates Remain Unchanged
Bucking the countrywide trend, rents for office space in Leeds have climbed steadily over the past 2 years, primarily due to an increase in demand for more flexible offices. However, as economic uncertainty has increased, rates have remained unchanged at £324 per desk for the past year.
Though spaces are limited for companies looking for an office for more than 25 people, rents for these enterprise offices are priced competitively ranging in price from £160 to £325 per desk per month.
Source: Rubberdesk March 2023
Glasgow: Office Rates Hold Firm
An 8.6% increase in new supply in Glasgow, albeit from a low base, is encouraging that Glasgow has seen a growth in Flex offerings. Desk rates across Glasgow held steady at a median rate of £354 per desk per month following a period of growth over 2022.
83% of current availability in Glasgow is focused on smaller businesses such as professionals and early startups looking for 1-10 desks, though there are larger offices available for teams up to 50 desks. Starting at a median rate of £378 per desk, these larger offices are ideal for financial services, software & engineering firms.
Source: Rubberdesk March 2023
Bristol: Desk Rates Fall 4% After Recent Surge
After reaching a market high of £375 last quarter, desk rates fell 4.7% to £347 per desk while supply increased marginally to 55,350 sq. ft.
With 67% of all offices available in Central Bristol, supply outside the city centre is limited to smaller offices.
Source: Rubberdesk March 2023
Aberdeen: Desk Rates Remain Flat as Vacant Space Falls 5%
Aberdeen has just under 20,000 sq ft of available Flex office space, and has seen little growth over the last three years. Rental rates in Aberdeen have changed little over the past 18 months maintaining a high of £300 per desk per month.
As a smaller market, 85% of all available space is reserved for offices of 1-15 staff, though there are a few larger enterprise offices available for teams of 16-50 at a median rate of £261 per desk.
Source: Rubberdesk March 2023
Edinburgh: Desk Rates Gain on Low Inventory
After holding steady at £219 per desk for the second half of 2022, median desk rents for flexible office space increased 37% this quarter to £300 per desk. With 80% of all available offices for teams of 15 or fewer people, serviced offices in Edinburgh are better suited for startups and smaller teams looking to take advantage of low rates and terms.
Though limited, enterprise offices are available for larger teams of 50 and come at a higher premium of £524 per desk.
Source: Rubberdesk March 2023
Newcastle: New Enterprise Offices Lead to 38% Increase in Supply
Newcastle was one of the few cities not to see a drop in price during the pandemic. Though new supply has been hard to come by, there have been a number of new enterprise offices with 50 or more desks added to the market.
Despite a 38% increase in new inventory to 41,800 sq. ft., desk rates have remained flat at £158 per desk with 69% of all offices devoted to teams of 15 or less. The new larger offices come at a slight premium of £197 per desk, primarily due to extra amenities associated with enterprise offices.
Source: Rubberdesk March 2023
Cardiff: Desk Rates Unchanged at £205
Better known as the Welsh capital with a large university presence, serviced offices in Cardiff have dropped 20% since the start of the pandemic to £205 per desk.
Catering to businesses of all sizes, from 1-10 people to 200 plus, there is a range of office sizes available with some of the larger enterprise offices priced as low as £140 per desk.
As one of the smaller city centres in the UK, most of the currently available offices are within a 1-mile radius of the city centre providing easy access to many of the amenities the city provides.
Source: Rubberdesk March 2023
Cambridge: Desk Rates Hold, on Par with London
Cambridge has a limited supply of available serviced offices with only a few operators servicing the city. But with Silicon Fen, the UK’s answer to Silicon Valley, transport links, proximity to London, and access to talent, word has spread that the Cambridge market is ready to expand.
With limited supply, desk rates have remained relatively stable over the past 3 quarters. Larger offices with 50 or more desks continue to attract a higher premium due to additional amenities such as private meeting rooms and offices. A coworking desk on the other hand is relatively affordable at £270 per desk, down 23% from last quarter.
New grade A workspace in the heart of Cambridge is set to open in Q2 2023, providing much-needed supply to the market. The six-story sustainable building will offer premium workspaces, pushing the median rate to £650 per desk, above pre-pandemic levels.
Source: Rubberdesk March 2023
Download the full report
Please see our January 2024 London Flexible Office Space Report for more up-to-date insights on the latest London Flex Office Research.
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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
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 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:
- E: [email protected]
- T: 0800 699 0655
