Procurement · 1 June 2016

Will rising co-working prices force entrepreneurs back to coffee shops?

rising co-working prices
Buzzy coffee shops could be more conducive to concentration than expensive co-working spaces
New data from SpareOffice highlights sharply rising co-working prices in the UK, as everyone from one-person companies to big corporates embrace the trend.

The average co-working space in London costs almost 400 per month, while a desk in one of the UK’s cheapest cities will set an entrepreneur back 200, the research reveals.

Ithighlights a sharp increase inaverage UK co-working pricesfrom the 168 per month calculated by Deskwanted in 2011 and those who carried it out are confident the trend is set to continue.

we believe that prices will continue to rise as more and more companies embrace the flexible arrangements and collaborative environment offered by co-working space providers, said SpareOffice chief executive Joe Vallender.

indeed, we have seen an increase in investment by institutional investors, which see co-working spaces as an interesting investment opportunity given the relatively low yields offered elsewhere in the commercial real estate sector, he added.

Recent moves to flexible working by big corporates have indicated that the the popularity of working across multiple locations is not limited to startups. The Telegraph Media Group announced plans to reduce space at its London headquarters in May 2016, with chief executive, Murdoch MacLennan, telling staff in an email: Our office is never full and even on a very busy day a large number of desks are unused.

with changes in the way we work, and hot-desking for some of those who need to be in the office, we will be able to reduce the size of our footprint. I believe that this will allow many of us to have a better work-life balance and I hope you will welcome this modern, employee-friendly approach that is so much in line with the changes in the media world.

Another recent report from property consultancy CBRE suggested that financial services firms in the City of London are also getting in on the act in order to reduce real estate costs.

as part of the consolidation process, financial occupiers are seeking to change desk utilisation from its current rate to as high as 85 per cent, said CBRE London director Katherine Bain.


 
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ABOUT THE EXPERT

Hannah Wilkinson is a reporter for Business Advice. She studied economics and management at Oxford University and prior to joining Business Advice wrote for Kensington and Chelsea Today about business and economics as well as running a tutoring company.

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