Tribes Inspiring Workplaces – Amsterdam FOZ spotlighted by Savills on their article: European Flex Offices – Autumn 2022
FLEX GROWTH IN EUROPE
European flex office demand reached 193,000 sq m during H1 2022, in line with the levels recorded for the full year 2020 and 2021. Flex office demand accounted for 5% of take-up across European cities during H1 2022, up from 3% during the pandemic, and remains on a gradual recovery to the 8–9% observed before the pandemic. Amsterdam, Paris CBD and Lisbon have been the most active flex markets over the last 18 months, however, the major German cities have generally seen lower levels of flex office demand in recent years, partly due to a more traditional working culture and more cellular office layouts, with a higher proportion of private offices in conventional space.
The flex office market in Barcelona continues to add new centres. During H1 2022, there were ten deals registered, accumulating almost 20,000 sq m. Demand continues to be active, with an average size of between six and eight workstations, although medium-sized companies are increasingly looking to flex spaces as the centre of their corporate headquarters. This demand, which can range from 50 to 200 workstations, tends to be from international tech-related companies which value the flexibility of this market.
In H1 2022, flex operators already represent 5.4% of the total take-up in the Madrid office market. This is still far from the almost 11% registered in 2018 (which was the largest share in the historical series), but it is an improvement of almost one percentage point compared to 2021.
Paris CBD appears to be one of the fastest-growing European hubs for flexible office operators, with 45,000 sq m of flex take up in H1 2022, 20% of the total. Deskeo, IWG and M2DG have been among the most active operators, whilst Morning has signed for five spaces so far this year in the CBD, totalling 17,000 sq m. However, over the next couple of years, we expect to see new flexible office locations in the French regional cities following a rise in new requirements.
London West End recorded no flexible office deals during H1 2022, although activity picked up in Q3 2022, with Landmark Space, X+Why and Huckletree signing for space. In the City, flex offices accounted for 7% of total activity as occupancy levels continue to recover.
In Warsaw, the increase in demand among flexible space operators during H1 2022 is clear, with deals from Brain Embassy and Loftmill. Demand through the end of June was 140% higher than for the whole of last year, reaching 15,700 sq m. Furthermore, six transactions were signed, compared to seven for the whole of 2021. The Russia/Ukraine conflict continues to increase business uncertainty across CEE, with many companies relocating to Poland and seeking office space on more flexible terms. Modern coworking space in Poland, despite its numerous operators, is mainly concentrated around a few major providers and the five largest operators account for 44% of the total space offered.
Although operators have not been as active in Prague in 2022, the landlord, Penta has implemented fitted space into their offices (branded as FLEKSI). Flex demand has not observed a significant recovery to the same speed across the major German cities, though Mindspace is set to open its sixth Berlin flex office, signing for 4,100 sq m by renovating a former department store, and will expand into Dusseldorf in 2023.
In Amsterdam, flex operator Tribes has recently signed a lease contract for 2,266 sq m in the FOZ building at the South-Axis district, Amsterdam, marking their eighth location in the city. New requirements from operators remain strong and we anticipate positive momentum to continue.
In Stockholm, Convendum is currently the largest co-working operator, and recently signed for 7,600 sq m on Kungsgatan on a 12-year lease, whilst emerging operators including 7A now account for 32,000 sq m of flex space in the city.
In Brussels, flexible office demand exceeded 10% prior to the pandemic before slowing driven by Spaces, Fosbury & Sons and Silversquare, although in 2021, new take-up has been more limited. Dublin’s flex office demand has recovered to 7% of total take-up in H1 2022, with Glandore and Regus signing leases in the city.
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