Flexible workspaces in secondary UK cities could contribute over £12 billion to local economies over the next decade, according to a study conducted by economists at Development Economics on behalf of flexible workspace firm Regus.
The study found that economic uncertainty under Brexit will likely cause flexible workspaces in suburbs to flourish and predicts that by 2029, there will be over 246,000 people working out of one of these spaces across the UK. This is being driven by companies who are recognizing the cost effectiveness of basing employees in flex spaces outside of major markets.
Additionally, the report found that an average of 231 jobs are created in places that have coworking spaces that are contributing £15 million to the local economy.
Furthermore, the analysis suggests that flex spaces can benefit local economies through a boost in Gross Value Added (GVA), which is the value of goods and services made in the area. In fact, the study found that a coworking space in the UK will generate £20 billion GVA each year by 2029.
“This study reveals a shift in jobs and capital-growth moving outside of city centres, where it has been focused for the last few decades, into suburban locations,” said Steve Lucas, author of the report. “This can benefit businesses and people, from improving productivity and innovation, to reducing commuting time, which leads to improved health and wellbeing.”