28 February 2019 | Herpreet Kaur Grewal
Europe is forecast to see 255 million square feet of flexible corporate space in 2019 - a 12 per cent increase with over 70 per cent of this space being available in smaller secondary cities, according to Instant Offices.
All EMEA cities, including Manchester, Lille and Frankfurt, have seen supply grow by 15+ per cent in response to accelerated demand, says Instant Offices, an office broking service which finds flexible workspace for its clients.
US states such as Kansas, Nebraska and Oklahoma all reported growth rates of over 20 per cent across the past 12 months.
Overall, this growth of flexible workspace is only set to spread to new markets in 2019.
Instant Offices' research states that the flexible workspace sector has "ridden the crest of a wave for the past five years with global demand increasing by 50 per cent and more market supply of flex space than ever before".
It now estimates the global market to incorporate 32,000-plus centres, which represents 521 million sq ft. This is an increase of 15 per cent year-on-year since 2013.
Occupiers are also continuing to reassess the way they use office space, and with both commercial real estate rates and the cost of living some of the highest on record, many companies are starting to look towards secondary cities to cut costs and increase affordability for employees.
In 2018 there were "significant market shifts with an increase in corporate clients looking for flex space" and demand from corporates increased by 21 per cent in 2018 alone. Landlords are also taking a greater interest in the sector in the face of this increase of client demand, says the study.