Flexible office space set to double in Leeds

Flexible office space is set to almost double in Leeds over the next five years, according to research from property consultants JLL.

JLL said that the flex space market is expanding, with growth from both new entrants such as Yorkshire owned operator Gilbanks and Wizu Workspace , alongside more established operators including Regus and Orega.

Making up just 3.8% – a total of 455,000 sq ft – of Leeds total office stock in 2018, the proportion of flexible space is set to rise to 6.7% by 2023, as outlined in JLL’s new report.

Many operators are changing their strategy in response to increased competition and rising demand for flexible workspace. But what is driving even greater change in this sector is the fact that landlords and developers are now reacting with their own new concepts, said JLL.

The research found that developers are being forced to consider what the rise of the flexible office sector means for their portfolios and how to make sure that their space remains relevant and delivers the best returns.

JLL said: “More landlords are now improving office suites with desks, meeting rooms and data cabling in order to be fully operational at the start of a lease, where previously the space would have been let as empty, open plan space for the occupier to fit out and furnish. They are also increasingly providing better additional facilities like showers, bike stores and cafes in their buildings.”

As an example, at Wellington Place in Leeds, the developer MEPC has been setting the pace by creating substantial elements of amenity in addition to the office space.  At Kirkstall Forge, developer CEG has established its ‘Forge Studios’ offer with a wide array of amenities available to occupiers.

JLL’s new report outlines how co-working essentially became fashionable and many operators have frequently used the term to suggest a sense of modernity to their offer. However, true co-working brands are few and far between and generally have a relatively small footprint. JLL estimates that co-working operators still make up just 8% of the UK’s total flexible office stock.

Jeff Pearey, director in JLL’s Leeds office, said: “In line with some of the other Big 6 regional markets, Leeds has witnessed strong recent flex space activity and the sector has grown noticeably with over 140,000 sq ft transacted over the last two years. We see this set to continue.

“The much-anticipated commitment of Channel 4 to Majestic is politically resonant, as it endorses Leeds as a major creative industries hub, encouraging supporting companies to follow them, with flex space operators well.

“It’s clear flexible office space is here to stay – and we will see more of both serviced offices and shared co-working space as Leeds continues to build its strength in dynamic tech and digital workforce.”