Is Brexit to blame for more London firms moving into flexible workspaces?

Research from Officio has revealed many major London businesses considering moving into flexible workspace has increased by almost a third in the past year amid Brexit.

Officio, a flexible workspace finder, has shown companies seeking flexible accommodation in central London increased by 31 per cent during the year to April 2019, as larger firms sought to streamline operations.

Demand for flexible workspace, office deals made on short term agreements often bundled with services such as telecoms, are seen as an indicator of the future health of the economy as they appeal to both startups and larger firms.

Officio’s CEO, Chris Meredith, said: “Our latest figures reveal a fascinating picture of how businesses across the UK are responding to Brexit uncertainty.

“It seems many larger companies are considering a move out of traditional leasehold office space and into flexible workspace. This could be because they don’t want to commit to long term leases in the current climate of Brexit uncertainty.

“While the number of deals done has fallen slightly the value of the deals and the contract length both increased which also indicates that larger firms are taking up flexible workspace. With Brexit remaining unresolved and business uncertainty increasing we expect to see the trend towards flexible workspace increase further this year.”

Take up of flexible workspace increased by 62 per cent in Canary Wharf, as business leaders wait for politicians to sort out the uncertain economic situation.

Meanwhile demand rose sharply in the Square Mile, increasing by 64 per cent over the previous 12 months.

London’s West End is also supposedly proving popular, with 35 per cent more flexible workspace deals agreed despite the average desk rate per month rising 16 per cent from £700 to £814, leading to a 49 per cent increase on the average contract value.

Across central London, the average contract value increased by eight per cent as businesses sought flexibility during the past year of uncertainty.