Flexible office space continues to makes its mark in Midtown

Running from Trafalgar Square in the West to St Paul’s in the East, King’s Cross in the North and down to the river in the South, London’s Midtown occupies a prime position in the heart of the capital. Over the years it has established itself as a key business destination with one of the most diverse tenant mixes across Central London attracting a mix of corporate, professional services and TMT sectors. As a result, Midtown is one of the most heavily occupied sub-markets within Central London for flexible office space, attracting a diverse combination of operators including WeWork, TOG, LABS and Workspace, as well as smaller operators such as X&Y, The Boutique Workplace Company and OSIT.

Similar to London’s West End, Midtown is traditionally a refurbished office market, although it tends to have slightly larger floor plates. It is therefore a great option for both start-ups and scale-ups within the central spine of London looking for a more competitive desk price compared to the West End. Current average desk prices in Midtown are £600, with the West End and City quoting £900 and £700 respectively. Over the years, as Midtown has evolved and grown in popularity amongst a wide range of occupiers, we have seen desk prices in the area tighten to reflect the increased demand, which has also seen incentives from operators reduce, albeit still remaining competitive compared to other central areas in London.

Bookended by Crossrail locations at Tottenham Court Road and Farringdon, as well as being top and tailed by King’s Cross and Waterloo stations respectively, Midtown is incredibly well connected. This has added to its appeal for a variety of tenants within the flexible office sector, particularly in terms of staff wanting a smooth and convenient return to the office.

Looking forward, Midtown’s flexible office market will continue to grow and we expect some larger spaces to come to the market in 2023 with TOG opening at Chancery House and Uncommon launching at Templar House. Both of these spaces are over 100,000 sq ft and represent the increasing demand for larger types of space, as well as adding a new dynamic to the market.