Flex office space gains momentum in Glasgow

Overall office take-up in Glasgow has seen momentum building over the last 12 months as a result of strong demand and a flight to quality that has generated increasing competition for the best space. The flexible office market has been no exception to this with appetite for the sector rapidly rising across a number of occupier markets as the requirement for flexibility from businesses as they recover from the pandemic and navigate the way forward in terms of hybrid working gains momentum.

As a result, Workthere enquiries for flex space in the city have increased 68% between 2020 and 2021. Furthermore, enquiries in 2022 are already 20% higher than the same point last year, signalling that this strong demand continues to build.

For corporate companies in Glasgow, the option to include flex space as part of their existing portfolio is proving hugely popular. It has also played a particularly important role in offering a high-quality and sustainable swing space option for corporates not wanting to compromise on high quality or ESG requirements for this type of temporary space.

Flex is adding to the choice that occupiers have in the Glasgow office market, and as such, we are seeing the range of space within this sector expand with different operators coming into the market. Whilst IWG dominates with three centres in the city centre, other names such as Orega, Clockwise, Stelmain and Let Ready have also taken space. The latest provider to take a new space is Wizu Workspace for 24,350 square feet at 2 West Regent Street. The increasing demand from occupiers, combined with a race for the best quality space, has highlighted a lack of depth in the Glasgow flex office market, which has created an opportunity for new operators looking to establish a presence in the city such as Cubo Works, Serendipity, Runway East and Plus X. All of which offer a slightly different take on the traditional flex offer.

The growing quality of flexible space in Glasgow, combined with unwavering demand has seen average desk prices reach £335, which compares to an overall UK average of £317 (excluding London) so far in 2022.

It is most definitely fair to say that Glasgow has fully embraced the flexible office market and has recognised the opportunities to offer a full spectrum of office space attractive to a wide range of users. The city has also acknowledged the importance of the occupier journey by responding to the growth in appetite for CAT A+ space that often bridges the gap between scaling businesses moving from flex space to conventional space.