The Rise of Co-working in UK Regional Cities
The popularity of co-working in London should be no secret to anybody. The rise of the flexible workspace has been one of the driving factors behind positive office performance in the capital in recent years, and this only looks set to continue. Across Central London alone in 2017 flexible workspace providers accounted for 21% of office space take up, an astonishing figure considering where the market was 10 years ago.
WeWork, a name I’m sure familiar to many, has been the main player responsible for this revolution. As the most prolific taker of space across Central London since 2012, taking more space than companies in any other business sector, they’re now responsible for leased space totalling over 2.5 million sq/ft. And if this wasn’t impressive enough, they now have the largest volume of space commitments behind only the Government.
But what does this all mean? Well firstly, that co-working isn’t just a trend. It’s a seismic shift in how commercial real estate assets are viewed and utilised, that’s transformed how not just startups and freelancers operate, but now also the worlds biggest companies as they look to benefit from the positives that co-working can offer.
So what about the regional cities? The increase in startups and SMEs is a trend not just specific to London, but something that has filtered out to other major UK economic hubs, so it would make sense that flexible working environments would follow. And they have.
Despite the heavy focus on London, around two thirds of the UK co-working market is located outside the capital. Instant Offices estimates that the main regional cities currently house around 3.8 million sq/ft of flexible workplaces, with this figure almost doubling when you head outside the CBDs.
The same reason why co-working has become so popular in London is also driving demand in cities up and down the country. Catering originally to the freelancer and startup demographic, the model has adapted and changed to meet the evolving requirement from users. New hybrid offerings, merging serviced offices with larger open plan working environments, has resulted in major businesses adopting new and innovative habits. Bristol, Birmingham and Manchester have seen strong growth in their stock of flexible office space, with more than 600,000 sq/ft coming to market in city centres over the past few years.
And it’s not surprising. Bristol, for example, as a city voted the 2nd best place to start a company in 2017 and sixth in Europe’s tech ‘super clusters’, has seen a significant increase in co-working providers. With overhead costs lower than London, a better quality of life compared to living in the capital and a thriving economy it’s not surprising a number of businesses are looking to relocate.
Looking to capitalise on this growing demand, SYZO is looking to launch its first co-working space in Bristol in the next 6 months.
Aiming to provide a hybrid offering of both serviced offices and regular co-working, SYZO hopes to create a working environment that enhances the lifestyle of its members.
Standby for further exciting updates on this as the year progresses and if you’re in Bristol and want to chat further on co-working and its future, get in touch!
Thanks.
SYZO
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