Analysis from Savills and its specialist agency Workthere claims that take-up of versatile workplace area from operators throughout the UK reached simply over 1.06 million sq ft in 2024, which is the very best stage since 2019 and 12 p.c above the full reached in 2023. Consistent with this progress, Workthere means that transaction ranges had been additionally up 35 p.c, regardless of a reasonable drop in enquiries by 12 p.c from a 2023 peak (based mostly on a 2022 index). There have been additionally optimistic indicators within the make up of demand with Workthere reporting a 7 p.c enhance within the variety of companies coming into a brand new market and a 33 p.c enhance from companies outgoing their present area.
The report additionally means that the variety of enquiries ensuing from an absence of satisfaction with their present area has doubled to over 10 p.c reflecting a continued flight to high quality pattern as companies search to draw and retain expertise.
Tom Leahy, co-head of Workthere UK, feedback: “2024 mirrored a yr of stability for the versatile workplace sector with take-up remaining sturdy throughout the board from operators. While demand was down at a headline stage, this seems in keeping with the broader workplace market, and the truth that transactions elevated demonstrates an improved high quality of demand over the course of the yr. As well as, we noticed pricing stay steady in London with progress throughout the areas.”
Workthere studies that exterior of London, non-public workplace desk pricing elevated by 17 p.c with the typical at £384 per desk (monthly). London was on par with 2023 at £776 per desk monthly, and £209 per sq ft.
Contract lengths have additionally seen an encouraging enhance rising by greater than 20 p.c in 2024 in comparison with the earlier two years. Common contract lengths now stand at slightly below 16 months in comparison with 13 months in 2022.
Religion Robins, head of occupier advisory at Workthere, provides: “All in all of the flex market is properly set to carry out healthily this yr with good underlying fundamentals off the again of great progress in lots of areas regarding contract size, desk value and take up. We anticipate the market will proceed to evolve this yr with operators and landlords providing a higher diversification of merchandise and facilities for purchasers.”
