Flexible co-working space ‘only going to grow’ in Leeds, according to new research

Flexible co-working space is set to see significant growth in the office market in Leeds, according to property consultants JLL.

Last year, 62,000 sq ft of flexible office space was transacted in Leeds.

JLL’s latest research report, Disruption or Distraction, shows that this type of space now makes up around 10% of annual take up by volume of the city’s offices market.

The flexible office space market has more than doubled in size since 2014 across Europe, and JLL says it will grow by up to 30% per year over the next five years.

The newest flexible space in Leeds was acquired earlier this year by Gilbanks at One Park Row.  The property company took 20,000 sq ft of office space in the building which has undergone a multi-million-pound refurbishment to deliver its serviced office offering.

Jeff Pearey, lead director in JLL’s Leeds office agency team, said: “In order to compete in today’s digital age, including attracting and retaining skilled people, the flexible office trend is now challenging aspects of the established office leasing model. Whilst flexible, shared and open space has its practical challenges for business, it’s more than a passing fad.

“Flexible workspace offers businesses, from start-ups and freelancers to major companies and international corporates, bright, open places where people work, meet, network and collaborate. And with some exciting new places now on offer in Leeds, demand is only going to grow.

“Commercial property owners need to recognise this when redesigning space to capitalise on this rapidly growing trend. And the Leeds market has certainly woken up to that, with investors and owners starting to become more creative and flexible in their approach.”  

Alex Duckett, managing director of Gilbanks, added: “JLL’s research reaffirms our view that flexible space is the future for both landlords and occupiers. Forward looking landlords are now understanding the need to engage the correct operator to enhance their assets in order to realise value and integrate them within their portfolios.

“At One Park Row in Leeds, we’ve recognised the existing professional community and how the Gilbanks concept can enhance that. We want to give dynamic businesses a unique working environment aimed at encouraging employee productivity and collaboration. Our latest offering does exactly that.”