Startups pushing up demand for co-working spaces as London tops average rents
Average rents per person at co-working spaces in the London have reached a £357 per month at tech startups push up demand and take up.
The figures, collected by serviced office portal SpaceOffice, outline how those cities with the biggest concentration of tech startups also have the highest rents for co-working spaces.
Unsurprisingly, the capital tops the pile with the most expensive rents in the UK, closely followed by Edinburgh at £284 per space and person and Bristol at £265 per space and person, all three with thriving tech sectors.
The demand for flexible, co-working spaces has exploded in the last ten years as technological advances and changes in working patterns, particularly amongst tech startups, have meant that the traditional, office-based environment has become increasingly outmoded.
Commenting on the research, Joe Vallender, Chief Executive at SpareOffice, said: “It comes as no surprise that London clinches the first place given that property values in the capital are higher than anywhere else, but we are slightly surprised that the Scottish capital claims the second spot which can be attributed to its relatively high end offering of co-working spaces and a limited supply.
“It’s difficult to predict how prices will change going forward as new spaces are being added to the market due to a growing demand from the UK’s start-up sector, and in particularly the tech sector.
“However, we believe that prices will continue to rise as more and more companies embrace the flexible arrangements and collaborative environment offered by the co-working space providers.
“Indeed, we have seen an increase in investment by institutional investors, which see co-working spaces as an interesting investment opportunity given the relatively low yields offered elsewhere in the commercial real estate sector.”
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