13/05/2025

Workthere has reported a 40% increase in London enquiries for the first quarter of 2025 compared with Q4 2024, with the most common size for deals that the flexible office specialist completes sitting in the 2,000—4,000 sq ft bracket, with rents ranging from £150—£240 per sq ft. 

In terms of the primary locations in demand, while it’s clear that London’s West End is the first choice for many businesses, this is partially a result of the greater volume of stock available. The West End is typically more expensive, with average rents for managed space at a 15—20% premium compared to the London average, but that doesn’t deter occupiers who are set on being in the West End. 

While the West End remains at the top in terms of demand, Waterloo / SE1 and the City Core areas also saw significant increases in demand, up by 67% and 77% respectively on Q4 2024. Those areas, along with Midtown, are seen as equally attractive by occupiers, and see similar levels of overall interest. 

Dan Brown, director at Workthere, comments:

“The strong increase in demand that we have witnessed during the first quarter of this year is indicative of the strength of the flexible office market as it continues to mature. The heightened demand is putting upwards pressure on desk prices, especially for the best space, but there’s a solid pipeline of supply as more landlords look to offer flexible solutions. 
“Q1 is always a busy time for the flexible office market for a couple of reasons. Firstly it coincides with the setting of businesses’ budgets, which typically run to either December or March, and secondly it broadly lines up with the start of the return to the office as the UK lockdowns eased in 2021. We’d expect to see the strong demand continue into the rest of H1.” 

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