Rush to the Regions: DeVono Cresa support flexible office boom in UK cities
The rapid growth of serviced/flexible/coworking offices has garnered much press and industry attention over recent years.
Without question the focus has been on London, which has been inundated with an influx of providers and centres. The evolution of the market landscape continues to keep pace and whilst there is no dip in desire to dominate London, providers are turning their focus towards other cities around the UK, hoping to get ahead of the curve, but more importantly follow occupier trends towards flexibility.
DeVono Cresa, the leading tenant-only advisory firm, has long stood out in London as an expert in the serviced office sector. Specialising in providing commercial real estate solutions to support their clients’ business objectives, they only ever act for occupiers, meaning that they really understand their clients’ needs and avoid any conflicts of interest.
Flexible leasing solutions are not solely the preserve of start-ups or mid-sized firms. Corporates are increasingly recognising the benefits of including a flexible/serviced element as part of their real estate strategy.
DeVono Cresa are proud of the great clients they work with, many of whom have operations outside the capital. As their clients’ businesses grow and change, they’ve increasingly asked DeVono Cresa to help them in finding offices elsewhere in the UK.
Although they’ve always been able to support any search, DeVono Cresa has now grown its own business to provide a full serviced office capacity across the whole of the UK.
The success of flexible leasing options has in part been accelerated by general uncertainty arising from the current economic and political climate. Whilst this will continue to weigh heavy on long-term decision-making, businesses contemplating taking flexible space are driven by other factors. A change in workforce dynamics, a shift in working patterns and emergence of new job types, all put pressure on current workplace needs.
In addition, businesses are seeing the merits of locating operations outside of London. Whilst comparative property costs can be lower, access to skills and talent, a greater national representation and importantly access to cheaper housing for workers play a key part in real estate planning.
We have seen this with the large-scale move by HSBC, establishing a new HQ in Birmingham for 2,500 employees migrating from London as part of a rationalisation of its banking operations. Likewise, Channel 4 is embarking on a redeployment to a number of regional locations, which includes the creation of a national HQ in Leeds in addition to its London base.
These types of moves have added an urgency for some serviced office providers to establish a greater presence in secondary cities around the UK. Already in the first half of 2019, we have tracked over 645,000 sq ft leased in the top 10 office locations.
Birmingham is hot-on-the-list for providers, as this central city sees a resurgence in general office demand from both local and national businesses. Increased acquisition activity of new centres gathered momentum in 2017 and has continued ever since.
Birmingham is also currently in the midst of a digital and technology renaissance, attracting investment into both education and commercial ventures. Its tech hub status is growing in prominence. Not only are the local universities and colleges creating a vibrant talent pool and post-graduate scene, but corporates are identifying the opportunities too.
With one of the largest student populations in Europe (over 99,000) and with 71% of the local population of working age, Manchester is also proving to be a magnet for start-ups, and corporates alike. It is no surprise that serviced office providers are ramping up operations in the city too.
Whilst this article has highlighted increased activity in Birmingham and Manchester, DeVono Cresa can’t stress enough that all UK cities are an interest to flexible office providers, which is ultimately bringing a greater choice of product for all types of businesses across the UK.
Wherever you’re looking for space, DeVono Cresa are on-hand to support every step of your real estate journey. Get in touch today to start your office search on 020 7096 9911 or visit devonocresa.com
