Disruption or distraction, the recent research from JLL, looks at what is next for UK’s flex market and how the sector has evolved more in the last three years than the previous 30 combined.
The research predicts that over 10 million square feet of space will be added to the sector over the next five years and will take up 8.5% of total office stock.
While London remains the clear frontrunner in flex office take up, the Big 6 cities (Birmingham, Bristol, Edinburgh, Glasgow, Leeds, Manchester) are also experiencing major growth. Take-up in these cities rose about 26% between 2017 and 2018 to reach 584,000 square feet.
“Activity in the Big 6 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,” said Elain Rossall, Head of UK offices research at JLL.
JLL’s research also highlighted how flex offices are impacting landlords and developers as they try to stay relevant in this booming industry.
Now, the concept of a partnership model has started to gain traction as it allows landlords and operators to build a relationship. With this model, landlords are able to reap the benefits of flex offices without directly entering into the market.