Flexible office firms eye London expansion in 2024, survey finds

A host of property companies are exploring expanding their London flexible office footprints in 2024 as demand for space climbs, a Knight Frank survey has found.

The real estate consultancy polled 25 landlords and operators in the capital, including British Land, Landsec and Landmark.

It did not reveal individual company responses, but said collectively 84% of respondents expanded their flexible workspace size in London last year.

Most (96%) indicated plans to further grow their portfolios in the sector next year, with the West End looking the most popular location.

The firm also found that 88% have seen year-on-year increases in occupancy across their sites. Tenant demand has jumped as numerous employers seek more flexible options as they adapt to post-pandemic hybrid working patterns.

Amanda Lim, UK head of flexible offices at Knight Frank said: “Premium workspace operators have captured a growing market of nimble companies opting for more flexible leases in newer, personalised offices that remove various administrative hurdles and offer customer-centric amenities."

Lim added: "Businesses can also be based in prime locations such as the West End, Bishopsgate and similar sought after addresses, where securing long-term space remains challenging for some."

Recent examples of expansion in the sector include in Fitzrovia. The Wogan House office building that the BBC is exiting is set to get a revamp and become flexible workspace.

Landmark Space, which runs flexible office spaces used by start-ups as well as larger businesses, said it has secured the lease of what will become known as 99 Great Portland Street from spring 2024.