Enquiries for flexible office space in Europe almost triple in last three months
Data from Workthere’s third sentiment survey shows that enquires for flexible office space across Europe have almost tripled in the months from April to July as confidence returns to the market and many countries come out of lockdown.
The figures show that enquires as a percentage of normal levels have increased to 46 per cent across Europe compared to 16 per cent in April and 28 per cent in May. Globally, enquires are at 44 per cent of pre-Covid levels.
This trend is synonymous with an improvement in sentiment across Europe with 44 per cent of respondents optimistic about the next three months and 85 per cent optimistic about the next 12 months. This compared to May figures of 42 per cent and 80 per cent respectively. Only 7 per cent of those who took part in the survey were undecided about the outlook for the next year.
In addition to the positive sentiment around outlook, the survey shows that confidence to return to work has had an impact on building occupancy across Europe, which now stands at 41 per cent. Contract occupancy remains more resilient, with a figure of 68 per cent expected by the end of August. Globally, occupancy levels currently stand at 40 per cent, but again contract occupancy is higher, which a figure of 64 per cent expected at the end of August.
Ed Bouterse, Head of Workthere in Europe, says: “Our survey shows some very encouraging signs, with figures demonstrating an uptick in confidence not only across Europe, but across the globe. Although we are by no means out of the woods with regards to Covid-19, it is reassuring that we are seeing many people return to the office and others looking at potential new flexible spaces. We anticipate enquiry levels to continue to rise across Europe as many corporates look to diversify their portfolios with flexible office space as part of a hub and spoke approach.”
In Europe, the proportion of members asking for rent relief has continued to fall to 24 per cent in July compared to 28 per cent in May and 34 per cent in April.
Jessica Alderson, global research analyst, Workthere, adds: “It is clear that sentiment across the flexible office market is becoming increasingly positive. With more and more people returning to the office as a result of cities starting to open up, we anticipate this trend will continue on an upwards trajectory in the coming few months.”