According to the report “Co-Working 2018” prepared by Cushman & Wakefield consulting company, the demand for flexible working places in 2017 increased globally up to the record-breaking level.
Great Britain is a leader on a global scale. As much as 21% of total volume of lease transactions, which concerned office space, were concluded in London in 2017 within the sector of flexible working places. In 2016, it was merely 8.5%. The participation of Great Britain on the global market of flexible working places increased up to 32% in comparison to 27% for the USA and 22% for the EMEA region (without Great Britain).
The demand for flexible working places reached the record-breaking 232 250 sq. m in the city center of London. It is over 21% of total volume of lease transactions concluded on the office real estate market in the capital of Great Britain. The total resources of flexible working places in London amount to over 929 000 sq. m, which is twice as much as in Amsterdam, that is a city which occupies the second place in the ranking (ca. 371 600 sq. m).
A flexible working place is currently a very important element of the European economy which is becoming more and more popular in our cities. Due to the popularity of co-working, the demand for such space is increasing on the entire continent in the geometric progression. The perfect example is Amsterdam which is characterized by one of the highest interest of people employed on a non-permanent basis in UE as well as culture of entrepreneurship and creativity, the development of which allows for the access to flexible working places.
Co-working does not only offer flexibility and space for growth but also allows for providing better working conditions to employees as well as improved corporate culture and limited risk for companies, which results from long-term lease contracts. One of the key development factors of the market will be some changes in accounting standards, which will make short-term lease contracts concerning flexible space more attractive to larger companies – says Elaine Rossall, Author of the report and Partner, Research and Analysis Department in the EMEA region, Cushman & Wakefield.
London exceeded New York due to both the amount of space and the number of transactions on the market of flexible working places. From 2012, lease contracts in this sector in Manhattan constitute 2.9% of the total lease market, on average, and in London – 10.6%.
Other European cities also record some increases in the sector of flexible working places. For instance, the participation of lease transactions concerning flexible space in Dublin increased from 0.7% in 2016 to almost 7.9% in 2017 in total demand.
According to the forecasts, the demand for co-working spaces will increase among larger companies. The anxiety related to BREXIT can cause further growth in demand for flexible working places in London as the largest corporations will attempt to avoid liabilities which are typical for long-term lease.