London flex office prices increase as occupiers reinvest in central office space - FMJ

Abstract

A new report from flexible office marketplace, Rubberdesk, shows that increasing demand for serviced offices pushed prices up across the greater London region by 3.4% QoQ to £690 per month. Rubberdesk's June 2022 London Flexible Office Market Report reveals Central London is the most expensive and in-demand district to rent an office, seeing a 1.1 per cent increase in the median price, and a 5.6 per cent drop in vacant office space QoQ. Southwark represents the best value at £704 per desk while demand for space in Westminster has pushed rents up 7.9 per cent to £830 per desk per month. The City of London highlights key trends observed amongst businesses seeking flexible office space, where demand for quality offices with premium amenities has been high. Rates in the City of London edged up 1.5 per cent QoQ to a median price of £745 per desk per month. By district, South London offers the best value for serviced office space, with a median monthly rate of £300 per person. Across East London, the cost of office space has jumped 3.5 per cent with a monthly median of £592 per person. Despite a 2.4 per cent decrease in available space since March 2022, London has experienced a significant supply of new workspaces over the past three months with serviced office operators such as The Office Group, Situu, Storey, Workpad, The Boutique Workspace, Foraspace as well as others who have opened over 20 new spaces across London with another five to come over the coming months.