Spotlight on Kensington & Chelsea – why the Royal Borough may be the smallest but is a big deal when it comes to flexible offices

The Royal Borough of Kensington and Chelsea, the smallest of all London boroughs, has historically been synonymous with the great and good of the capital. With its affluent retail flagships and sought-after post codes, it is no wonder that it has also become one of the most desirable locations to have an office and, more recently, flexible office space in London.

Unlike other locations across the capital, Kensington and Chelsea has never attracted a specific type of occupier and is therefore comprised an array of different companies from finance, law and fashion – some of whom express a desire to be strategically located near Embassies, many of which are located in the Kensington/Knightsbridge area. As a result, flexible office space, which can house a number of different businesses, has grown exponentially in popularity.

Over the last year, there have been a plethora of new flexible spaces that have popped up in the area. Located in Chelsea Harbour, one minute from Imperial Wharf station, Kitt Offices has launched space at Marina Studios complete with desirable riverside views. Closer in-land, Kensington Office Group has put space at 50 Sloane Avenue on the market; a modern new building in a brand-new development in the heart of Chelsea as well as 2 Allen Street, a stone’s throw from Kensington High Street.

Apart from the draw of its high-end status, what else has been the trigger for a rise in flexible space? With many people being priced out of the central office market, the fringe areas of Zones 1 and 2 where the prices are slightly cheaper, do not require a compromise on quality of amount of space. Occupiers can still make the most of excellent transport links as well as being that bit closer to home with a shorter commute.

In terms of pricing, depending on the quality and finish of the office space, the area can offer fantastic value for money at the lower end of the market where you can get pricing at around £350 per desk. At the higher end of the scale, this can reach £850 per desk with some of the more premium providers such as Ocubis.

So what’s next? While we can expect to see more flexible office space coming to the market, the availability of buildings available to be used for serviced office space remains a challenge. There is a lot of residential space in Kensington & Chelsea that cannot be used as commercial space due to change of use regulations, therefore finding new stock in the future could be an issue to ensure the sector is keeping up with market trends. In addition, with many people still uncertain about venturing into central London for reasons associated with Covid-19, we are seeing an uptick in enquiries for Zones 2 and 3, with companies looking for spaces that would require less travelling for employees.

The providers that currently have space and are looking at new ventures will need to ensure they continue to attract companies with strong fundamentals. Now more than ever, with Covid-19 still a consideration, a high-spec, comfortable place to work with a clean, safe and secure environment will be key.