Flex space UK Research | 6
Levels of maturity diverge around the country
The flex space footprint grew by 25% in 2018, a similar rate to 2017. The 3.9 million sq ft of flex space added to the market over the year was the strongest increase on record and highlights the demand for flexible solutions. While London dominates, Birmingham and Manchester each saw more than 100,000 sq ft added to their flex stock in 2018.
The London office flex market is one of the most developed markets globally alongside New York. From the number of new entrants into the market to the volume of space let to the sector, it is easy to see why flex space has had a profound impact on the office market. The arrival of WeWork in 2014 was a key catalyst for the flex space revolution in London.
The regional UK cities remain some way behind London in terms of the impact of the flex space sector. However, the Big 64
cities have seen strong leasing activity over recent
years from flex space operators. Take-up rose 26% between 2017 and 2018 to reach 584,000 sq ft (10% of overall take-up), although this is behind Central London, with 1.9 million sq ft (17% of the total).
The pattern of take-up in the Big 6 is following a similar trajectory to Central London, but lags by circa 3 years. Activity will take off in the next few years, particularly with WeWork who was instrumental in driving the expansion of Central London, now entering the regional markets. They are already present in Manchester and Edinburgh and are actively looking at Glasgow and Birmingham.
Growth of UK flex space
1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500
500 0 2014 Source: JLL 2015 2016 New openings (sq ſt, LHS) 2017 Total flex stock (sq ſt, RHS) 2018 0 25,000
20,000
15,000
10,000
5,000
4Birmingham, Bristol, Edinburgh, Glasgow, Leeds, Manchester
Sq ſt thousands
Sq ſt thousands
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