According to a newly published report from Cushman and Wakefield, demand for flexible and co-working office spaces throughout the UK soared in 2017, causing the firm to speculate that by the year 2027, such offices may account for as much as 10% of the UK’s commercial property market.

The demand for such spaces has been driven in large part by companies such as WeWork; the company is one among many who specialise in the provision of such spaces, and has in fact already established itself as the largest single corporate occupier of office space in London, with only the public sector exceeding its scale. The report goes on to claim that WeWork has taken up more space in London’s key commercial property districts than any other occupier since 2012. According to the report, WeWork has taken up more than twice as much space as Google, which leased 1.3m sq ft over the five-year period.

The increasing dominance of co-working space is not solely down to WeWork however, with many other companies getting involved, nor is it restricted to London. According to Cushman & Wakefield, co-working spaces accounted more than one-fifth of all office leases across the capital last year, compared to just 8.5% in 2016. Across other UK cities, the take-up of space by flexible office groups jumped to an average of 7.5% of commercial property markets in 2017, up from 2% in 2016.

“The flexible workplace is here to stay, as the world of work has fundamentally changed,” the report states. “A new breed of flexible operators who constantly challenge the traditional business model is now disrupting the real estate industry. Bodies of evidence from all parts of the globe prove that the sector is going to remain an important segment of the real estate industry in the future. Landlords and investors are sitting up and taking note.”

Sam Bonson

Sam is an aspiring novelist with a passion for fantasy and crime thrillers. He is currently working as a content writer, journalist & editor as he continues to expand his horizons.
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