London Desk Rates For Flexible Offices Stabalise Despite Surge in Supply from New Managed Offices

Wednesday, 31st January 2024 | Press

Rubberdesk, a leading provider in the flexible office space market, has released its January 2024 comprehensive analysis of desk rates and supply across London. The data underscores a dynamic shift towards managed offices, a stabilisation in desk rates across various regions of London, and a notable increase in supply, offering greater options for businesses seeking flexible workspace solutions.

Stable Desk Rates Amid Economic Challenges

Amidst ongoing inflation, a challenging commercial real estate market, and three quarters of price declines, the London market showed a whisper of revival, with desk rates edging up 2.6% to £625 per desk since the end of Q3. This stability indicates a robust market capable of weathering economic fluctuations.

Unprecedented Growth in Managed Office Supply

Despite tapering off near the end of Q4, overall supply across the Rubberdesk platform surged 43% (a whopping 1.5 million sq ft) for the year.

What's fuelling this unexpected upswing? Though the challenging economic atmosphere has indeed played a role in the growth of new inventory from existing serviced office and coworking operators, there's also been a remarkable influx of new managed spaces from companies such as Storey, InfinitSpace, Kitt, and Workplace Plus, acting on behalf of traditional landlords.

These new managed offices represented a sizeable 44% or 670k sq ft of all new inventory in 2023, despite only contributing to 23% of all accessible inventory on Rubberdesk at the start of the year. In contrast, supply of serviced offices chipped in with 56% of new inventory or 834k sq ft over the identical time span.

Larger Managed Offices to Drive Demand in 2024

“Thanks to a 43% surge in the availability of Flex offices in 2023, professionals in London have never had more choice when finding an office.” stated Jim Groves, Co-found and CEO of Rubberdesk. “Spurred by a mix of new serviced offices and larger managed spaces offered on longer terms by traditional landlords, such as British Land, we anticipate these spaces to drive demand throughout 2024.”

Key Findings

• Desk rates in Central London recover to £694 per desk after a year of steady declines
• New inventory in Central London jumps 51% in 2023 to total nearly 4 million square feet
• Mayfair, SOHO, Holborn, Marylebone and Fitzrovia continue to drive overall demand
• Shoreditch and Spitalfields drive demand in East London due to favourable rates of £628 and £466 per desk respectively
• Median rates in West London dip 2%, while prices for small teams of 5-10 jump 10%
• Office prices in North London hit all-time low of £350 per desk
• Desk rates in South London jump 15% as supply continues to climb

Read the Full Report

Read the full report here.

About Rubberdesk

Rubberdesk is the UK’s flexible office marketplace with thousands of fully furnished serviced offices and coworking desks ready for you to move in and rent by the month or year. Since launching in the UK in early 2020, the Rubberdesk platform now offers over 7,000 offices and an estimated 6 million sq. ft. of space with a capacity for 115,000 people.

Rubberdesk’s proprietary platform combined with industry insights from their office specialists helps customers find the best office for their unique needs. With a view across all available options, they simplify the process to create a bespoke shortlist, arrange tours and negotiating the best deals. All for free and without obligation.

Rubberdesk also operates in Australia and Ireland.

For further information, images and interview requests, please contact Laura O’Sullivan at Rubberdesk:

• E: [email protected]
• M: 07563 274539
• T: 0800 699 0655