Commercial Property Investor Podcast Flexspace Industry 2023 Report - with James Rankin from Instant Group
This time I'm joined by James Rankin of Instant Group to discuss the latest report on the flex space market in the UK. Instant Group is a leading provider of data insights and consultancy in the flexible workspace industry, and James shares insights from the report, highlighting the current challenges and trends in the market.
We discuss the shift in occupancy, the demand for sustainability, and the importance of differentiation in the industry. We also touch on the increasing involvement of landlords in the flex space market and the potential for future growth.
KEY TAKEAWAYS
- The flexible workspace market in the UK is facing challenges in terms of slow demand recovery post-COVID, profitability being squeezed, and difficulty in increasing rates.
- The occupancy rates in the UK flexible workspace market remain high, averaging around 80-83%, with most occupiers staying for an average of four to five years.
- While London has seen an increase in flexible workspace supply, there is a lack of quality flexible space in secondary and tertiary markets, leading to an imbalance in supply and demand.
- The shift towards sustainability is becoming increasingly important, with corporate clients prioritising sustainability metrics and demanding data on emissions and other sustainability factors from flexible space providers.
BEST MOMENTS
"We're in a tough market right now, whether you're in the traditional sector or the flexible workspace sector."
"We're seeing occupancy rates in the UK remain at some of the highest levels that we've ever seen, averaging around 80 to 83 percent across the UK."
"A 10% shift in occupancy from traditional to flex space would require a 5.2 multiple increase of the current flexible supply across the UK to get to that demand level."
"It's the sort of thing that people are really caring about right now."
www.theinstantgroup.com for Office statistics and data.
www.instantoffices.com for office space search.
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