Number of profitable flexible offices in the UK spikes as sector continues to climb

In its latest Flexmark report, Savills flexible office specialist Workthere confirms that 87 per cent of UK operators are profitable, with 63 per cent of providers reporting profit margins above 15 per cent, which is 50 per cent higher than the figure recorded in 2021.

The report, which surveyed flexible office providers across the globe to provide a benchmark of the sector, also reveals that the number of global operators reporting a profit increased from 82 per cent to 89 per cent yoy.

Now in its third year, Workthere’s Flexmark report offers an insight into the flexible office market pre, during and post-pandemic and shows that occupancy levels on a global scale have recovered across both private and shared offices, which are currently at 81 per cent and 69 per cent respectively, in line with pre-pandemic levels.

Cal Lee, global head of Workthere, comments: “The growth in profitability has undoubtedly been driven by an increase in demand for flexible offices across the globe. As a result, we have seen occupancy recover to pre-covid levels and desk prices internationally driven up by 7 per cent, compared to a drop by 6 per cent in last year’s survey.

“Both of these factors, combined with a relatively constrained expansion by flexible office providers, has generated a shift in the proportion of flexible offices that are profitable on an operating level*.”

Jack Williamson, head of Workthere UK, says: “Given that the UK was one of the first countries to remove restrictions and return to a more normal way of life, it is no surprise that we also have a higher rate of members back in the office for the majority of the week.

“It would also explain why the UK has a higher utilisation of space with an average of 78 per cent desk space, although meeting and collaboration areas have continued to grow in importance, reinforcing the move towards activity-based working in order to improve wellbeing and productivity.”