According to the latest CBRE UK flex market update, the UK Capital city is not the only one acknowledging flex growth.
As of Q2 2023, The northern region (Manchester, Leeds, and Liverpool) recorded 150,000 sqm of flex space being leased with Manchester owning 67% of it (100,000 sqm). This significant growth is explained in part by 2 new openings in town: x+why (adding 3,300 sqm) and Orega (adding 2,300 sqm). The most in-demand office size in Manchester is around 10 to 20 desks offices.
Midland and Southern England have also witnessed growth, particularly in Birmingham and Bristol. As of Q2 2023, both combined markets own 100,000 sqm of flex space with Birmingham currently owning 65,000 sqm of it (a 37% rise compared to 2022).
The market update reports an average occupancy rate in Birmingham of around 85% with brands like The Office Group (TOG and Fora), Runway East, and Orega looking to acquire further sites in the city center. Bristol is also of high interest for growth as the occupancy rate averages 90%.
The rise in demand is driven by tech businesses which are leasing more flex space than any other sector across the UK.
Looking ahead, CBRE UK predicts operator take-up will hit 100,000 sqm of leased flex office in London by the end of 2023. The market update also highlights more landlords growing their flex portfolios predicting more lease agreements and greater transparency nationwide.