Big corporates are a flex fillip in London
Large corporate occupiers are behind a rise in take-up in London’s flex office market, according to new figures from CBRE.
New space requirements and the number of desk deals done were both up by 30% year-on-year over the start of 2024, the agency said, with more than 70% of its own deals closed on behalf of companies with more than 1,000 employees.
Of the number of desks secured through flex transactions, 41% involved technology, media and telecoms companies, with energy and utilities businesses also taking more space.
Large corporate occupiers are behind a rise in take-up in London’s flex office market, according to new figures from CBRE.
New space requirements and the number of desk deals done were both up by 30% year-on-year over the start of 2024, the agency said, with more than 70% of its own deals closed on behalf of companies with more than 1,000 employees.
Of the number of desks secured through flex transactions, 41% involved technology, media and telecoms companies, with energy and utilities businesses also taking more space.
Rents are up by 10% across central London, with an average price of £210 per sq ft.
Michael Glynn, head of UK flex at CBRE, said: “The market ended last year in a strong position, and it has been really positive to see this momentum continue well into 2024. As an example, we have secured multiple notable transactions, between 50 and 750 desks, for corporate occupier clients.
“While operator take-up is behind our original forecast, this is likely to change, and we are expecting increased activity from the Investor community.”
Director Holly Bailey added: “We are anticipating that corporate occupiers will continue to acquire more flex space to accommodate project space, while operators and landlords are also providing more comfort to these occupiers around legal terms and security.”
