A new report from the flexible office market, Rubberdesk, shows growing demand for serviced offices has driven prices in the Greater London area up 3.4% from the quarter to £690 per month.
Rubberdesk’s June 2022 London Flexible Office Market Report reveals that central London is the most expensive and in-demand area to rent an office, with a 1.1% increase in median price and a decrease 5.6% of vacant office space QoQ. Southwark represents the best value at £704 per office while demand for space in Westminster has driven rents up 7.9% to £830 per office per month.
The City of London highlights key trends seen among companies looking for flexible office space, where demand for quality office space with high-end amenities is high. Rates in the City of London increased slightly by 1.5% from the previous quarter to a median price of £745 per desk per month.
By district, South London offers the best value for serviced office space, with a median monthly rate of £300 per person. Followed by North London at a median of £395 and West London at £450. In east London, the cost of office space jumped 3.5% with a monthly median of £592 per person.
Despite a 2.4% decrease in available space since March 2022, London has seen a significant supply of new workspaces over the past three months with serviced office operators such as The Office Group, Situu, Storey, Workpad, The Boutique Workspace, Foraspace and others which have opened over 20 new spaces across London with five more to come over the next few months.
Commenting on the results, Jim Groves, CEO of Rubberdesk, said: “The London flexible office market has seen a string of new centers open over the past six months, with more to come, but this has not been enough to meet business demand. The substantial quarterly increase in the cost of office space in London marks a long-awaited reversal of the downward trend of the pandemic.
Laura O’Sullivan, Rubberdesk’s Flexible Space Specialist for UK and Ireland, added: “Pockets of London like Paddington and Farringdon are booming as the new Elizabeth line means shorter journey times between popular, sought-after destinations. Demand will continue to strengthen and the flight to quality will remain a key driver for businesses , which will lead to upward pressure on prices.