London flexible office occupancy rates rise to pre-pandemic levels

New data shows that central London’s flexible office spaces have seen their occupancy rates return to pre-pandemic levels.

Knight Frank conducted a study and found that 86 percent of the top 30 flexible workspace providers worldwide have seen their occupancy rates rise to more than 60 percent in their central London offices.

Eighty-eight percent of the 30 largest flexible office companies — including WeWork, The Office Group and IWG — said they now plan to expand their office space, by adding new locations.

35% (more than a third) of respondents claimed that demand was driven in part by central London financial services firms, while 25% stated that it was driven by technology companies.

“Flexible desks have seen a post-pandemic boom in sectors that have traditionally driven office demand [the City and West End] said Knight Frank executive Amanda Lim.

“Companies of all sizes, from start-ups to large corporations, are increasingly appreciating the option to go directly into a workspace and easily scale it up depending on headcount trends and how much their employees use the office,” said Lim.

Technology staffing firm Levine sold a 23,000 square foot area in British Land’s Bishopsgate Tower 155 tower as one of the biggest deals of the year.

Knight Frank’s previous research has shown that almost half (47%) of UK companies intend to include flexible office space within their property portfolios.