Challenging economic conditions have done little to dampen the growth of the flex office market according to a new report from CBRE.

The data shows that Q4 2023 saw an increase in occupier demand for flex office space in London and all other major UK cities. Likewise, retention rates were high with CBRE reporting that 60% of flex space occupiers chose to renew their leases last year.

Occupiers were extremely active towards the end of the year when it came to trying to secure space. Best-in-class spaces were the most popular, but also those close to local transport options and local amenities – both key facilities for hybrid working where companies need to attract the best employees by ensuring their trip into the office is as simple and enjoyable as possible.

Companies choosing flex space as a permanent option

Another interesting factor in the report is that more and more companies are choosing flex space as a permanent solution.

This is true of small start-ups and large enterprises which can both benefit from flexible space in serviced office buildings equally. The ability to take more space when you need it is incredibly valuable and efficient in the era of hybrid working.

With this in mind, it is no surprise to learn that many companies are choosing this type of office as a long-term solution.

How are corporate occupiers using flex space?

If one of the key office trends from 2023 was corporate occupiers taking up more flex space, what are they using it for and how are they benefitting? The CBRE report suggests three big advantages for corporate occupiers that make flex space stand out.

First, serviced offices which offer flexible space tend to come equipped with a high number of shareable meeting rooms which are ideal for collaboration. In the world of hybrid work, having access to a high number of meeting rooms with business-grade internet and state-of-the-art communications technology is a major advantage. Many traditional offices are not kitted out like this.

Second, large companies like flex space which can be customised for their own use. Branding a space is a normal expense for corporate occupiers, but flex space allows this while also having furnishings and fittings already in place, so the set-up process is shortened and immediate move-ins are often available in serviced offices. Being able to customise a space quickly will only become more appealing to corporate occupiers in future.

Third, desk use efficiency is important. With a flexible space in a service office, companies know exactly how many desks they are using and how much space they need. They also know that they only have to pay for what they are using on a per-desk basis and there are no additional charges for communal areas or empty desks.

All indications show that flex space in serviced offices will keep getting more popular with companies large and small who are looking for a modern office space solution. Hybrid working trends, the need for superior amenities and facilities, and the ability to customise spaces easily are just three of the reasons that flex space became more popular by the end of 2023.

In 2024, why not make your business the latest to move to a serviced office with flex space that can grow with your company? Browse our available locations and get in touch with the team.