25 February 2019 | Prithvi Pandya
The number of flexible working locations in central London has grown by 42 per cent over the past year, according to a report by flexible office provider Office Freedom.
The company tracked 155 new business centre openings in 2018 and found that growth in flexible workspaces shows no signs of slowing down.
The report reveals that this growth is driving more competitive rates, lowering the cost of office spaces within the capital.
Over the past two years, office prices in Hammersmith had fallen by 29 per cent, while Paddington prices were 3 per cent cheaper as a result of greater flexible space availability. The rates in Knightsbridge were still among the highest in central London, but have dropped by 38 per cent between 2014 and 2018.
Richard Smith, CEO of Office Freedom, said: "The increase in availability of flexible working spaces from new operators and attractive terms have maintained pressure on workstation rates.
"There are market uncertainties due to Brexit, but businesses increasingly want to be able to react whatever conditions they face. Flexible workspaces allow businesses to scale up or down on demand and only pay for the space they need."
Industry estimates show that 30 per cent of corporate real estate would be flexible workspace by 2030 and that London is now the world's capital for flexible working spaces.
As 95 per cent of workers cite the office environment as being important to their well-being and mental health in research by Peldon Rose, Smith believes that flexible workspaces can offer employers a real boost.
He said: "Companies appreciate the link between modern workspaces and employee productivity and wellness, and the right environment can have a beneficial effect on staff recruitment and retention."
The Flexible Workspace Boom report can be downloaded from the Office Freedom website.