Flex space UK Research | 15


Hubble searches by business sector, 2018 44%


Information Technology


Industrials


33% 12%


Consumer Discretionary 4% Financials


Consumer Staples


1% Utilities 1% Medical 1%


Telecommunication Services


4%


Average requirement size increasing


The largest increase in searches year on year was from the larger size brackets, with searches for 50+ desks more than doubling. This is perhaps an early indicator of larger organisations’ desire to use more flexible space as part of their portfolio strategy, and willingness to engage via alternative routes to market – using an online marketplace.


Pricing equilibrium not yet achieved


The flex market in London remains in high growth mode, with operators expanding aggressively to achieve market share and, in some cases, offering generous discounts to achieve this goal. The heavyweight backers of some larger operators mean that they may continue to operate at a loss to achieve scale. At the same time, new entrants with different business models continue to enter the market. As a result, the flex market has not yet reached maturity and pricing equilibrium. This is reflected in the desk rates quoted on Hubble which range from £186 to £1,109 per desk, averaging £637 per desk, and do not yet correlate strongly with the cost of leasing space for operators.


Annual increase in searches by desk range, 2017 - 2018 Year on year growth in searches


% growth 0 1 20 40 60 80 100 120 14


2-5


6 -10


11- 20


21- 49


50+ Source: Hubble


Number of desks


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