Prices Of London Serviced Offices Up 3.4% In Q2
UNITED KINGDOM – Data from flexible office marketplace Rubberdesk revealed that rising demand for serviced offices pushed up the prices for such commercial properties in greater London by 3.4 percent to £690 per month in Q2 2022 compared to the prior quarter, reported the Facilities Management magazine on Monday (25 July, SGT)
According to Rubberdesk’s June 2022 London Flexible Office Market Report, Central London is the priciest and in-demand district to rent a flexible workspace. In fact, the median price of such workspace in the area edged up by 1.1 percent quarter-on-quarter in Q2, while the vacancy level fell by 5.6 percentage points over the same period.
On the other hand, Southwark was named as the market offering the best value at £704 per desk, while the strong demand for flexible office space in Westminster pushed rents by 7.9 percent to £830 per desk per month.
In the City of London, demand for quality workspace with high-end amenities is healthy, with prices in the areas marginally increasing by 1.5 percent quarter-on-quarter to hit a median price of £745 per desk per month.
By submarket, South London provides the best value serviced office space as the median monthly rate there is merely £300 per person. This is followed by North London (£395) and West London (£450). As for East London, the cost of office space climbed 3.5 percent to £592 per month per person.
In spite of a 2.4 percent dip in available space since March 2022, London has seen a large increase in supply of new flexible office space in the last three months, with serviced office operators such as Situu, Foraspace, Storey, Workpad, The Office Group, The Boutique Workspace and others have launched more than 20 new outlets across London, with another five opening in the coming months.
“The London Flex office market has seen a raft of new centres open over the last six months, with more to come, but it’s not been enough to satisfy business demand. The substantial quarterly increase in London’s cost of office space marks a long-awaited reversal to the pandemic’s downward trend,” noted Rubberdesk Chief Executive Jim Groves.
Meanwhile, Rubberdesk Flexible Space Specialist for the UK and Ireland Laura O’Sullivan added that areas in London, such as Farringdon and Paddington are flourishing as the new Elizabeth line speeds up travel time to popular destinations.