Blog

CBRE Reveals Latest Insights into Flexible Workspace “Revolution”

CBRE Reveals Latest Insights into Flexible Workspace “Revolution”

A new report from CBRE (November 2017) shines the spotlight on the growth of flexible workspace in the UK and Europe.

Collated by CBRE’s EMEA Research and A&T teams and entitled ‘European Flexible Office Markets - The Flexible Revolution’, the study focuses on flexible space -- incorporating serviced offices, managed offices, coworking space, accelerators and incubators -- and digs into the drivers behind its dramatic growth over the past 5-10 years.

Amongst them, corporate occupiers have created substantial demand for flexible space, yet their requirements often differ significantly from those of small and medium-sized businesses.

For this report, CBRE conducted a series of interviews with global, European and UK real estate directors of large corporations to determine what the real estate industry needs to do in order to meet their ambitions.

The findings also challenge the supply of flexible space and its implications for valuation, “which can lead to fresh opportunities for landlords to develop flexible products that take advantage of this disruption.”

The report, which cites data from the Instant Group, shows that the global market has been growing at an average of 13% per annum over the past decade, which represents a tripling in size since 2006, to approximately 11,000 centres worldwide. According to the research:

“Growth rates in EMEA (excluding UK) and APAC have been around 20%, while the more mature markets of the UK and the USA have seen less impressive, but still positive growth of 10% over the same period.

More specifically, key European cities like Berlin, Paris and London have all seen strong growth of between 12 – 21% in year-on-year terms, which is comparable with more mature markets like New York and San Francisco. London is the largest market by far, not just in European terms but globally, with over one thousand serviced and coworking centres.”

The report goes on to profile London’s flexible workspace market, which has grown dramatically from an average of 2% of annual office take-up, to 8% in 2016 and a massive 15% in H1 2017.

CBRE attributes part of this growth to the “inflexible nature” of London’s traditional office leases and a boom in the number of small and micro businesses since the recession, which are fuelling demand for flexible space.

Read more by accessing the full report here


You have not selected any business centres, partners or brokers, do you want to continue?


 

D2 Interactive