Co-working and serviced office space providers made up the largest share of space leased in Central London for the first time ever in the first half of 2017. During the first six months of the year, the likes of WeWork and The Office Group accounted for close to 885,000 square feet of newly-leased office space in the heart of the capital, according to research from Cushman & Wakefield.
Amy Emery, head of serviced office advisory at the firm, believes the most recent quarter was a defining one for the sector, with barely a day going by without a significant serviced office and co-working announcement.
“The market is becoming increasingly competitive and large-scale operators WeWork, The Office Group and London Executive Offices all increased their footprint across central London,” she explains. “WeWork are currently offering to buy or lease a further 350,000 sq ft so the trend we are seeing will continue.”
Emery adds that each transaction demonstrates the fundamental changes occurring in the occupational market driven by a desire from companies of all sizes for greater flexibility.
And the co-working boom looks set to continue.
“At a time when some sectors are wrestling with the impact of technology, Brexit or both, the rapid expansion of serviced office and co-working space has meant that this hasn’t translated into any slack in the market,” says Elaine Rossall, head of Central London research.