Flex and the City: Where are London’s most affordable offices?

Employment & Skills | Property & Construction | Reports | South East

flexible working

The flexible office market has grown rapidly over the last five years, with more than 4 million sq ft leased to flexible office providers in Central London.

A new report from digital office broker Hubble in partnership with JLL shows that despite WeWork dominating the headlines, the London market remains highly fragmented, with more than 150 providers offering some form of flex space in more than 650 separate locations.

Flexible offices are projected to grow to an 11% share of overall office stock in London by 2023. At the end of 2018, flexible offices had a 6.3% share of the Central London market (14.7 million sq. ft).

While Central London is generally synonymous with higher rents, with most private offices costing around £500-800 per desk each month, there are also areas with rents as low as £279.

Temple has seen the greatest increase in cost per desk (69%) between 2017 to 2018. The regeneration of Victoria has been reflected in desk price with an increase of 30%, closely followed by Hoxton (25%) and Marylebone (25%).

Hubble has also looked at areas where the average price per desk in London (£495) can be halved – prices have decreased in Peckham Rye by 9% and the average desk now costs £175. Hoxton also provides good value for money with desks costing £298 – though this has increased by 25% since 2017.

The most expensive place in the capital for a desk (on average) remains on Bond Street (£850), closely followed by Marble Arch (£800) and Green Park (£781).

Tushar Agarwal, CEO and co-founder of Hubble, said: “Fierce competition among flex operators has led to attractive discounts for occupiers, providing an opportunity to move into areas which would previously have been too expensive. In fact, on average transaction prices were 15% below listed prices in 2018 so finding and negotiating the best deal without compromising on location is key.”

Top 5 cheapest London locations:

Location Average cost per desk (£)
Peckham Rye 175
Bethnal Green 279
Putney Bridge 283
Hoxton 298
Angel 358

 

Top 5 most expensive London locations:

Location Average cost per desk (£)
Bond Street 850
Marble Arch 800
Green Park 781
Paddington 753
St Paul’s 750

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