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Leeds Becomes Hotspot for Flexible Workspace, Reports The Instant Group

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  • Leeds becomes hotspot for flexible workspace as demand for space in the North heats up, says The Instant Group
  • Leeds city center sees 15% increase in demand for flex space in 12 months
  • Manchester experiencing 85% occupancy rates

Leeds is leading the recovery for flexible workspace. As a haven for entrepreneurs and driven by its reputation as a hub for start-ups and scale-ups, demand for flexible workspace in Leeds for one to two people made up 46% of total demand since the beginning of 2022.

New data from The Instant Group, the largest global independent marketplace for flexible workspace solutions, shows that Leeds is also becoming the UK’s fastest growing tech hub with flexible workspace seeing an 120% increase in demand from technology companies over the last year. Although supply is growing in this market with Cubo, Wizu, and 2-Work all opening new locations, available space is tight with average occupancy rates in the city center already reaching 86%.

With demand growth continuing to accelerate, clients wanting to establish a foothold in Leeds need to act fast, as Instant’s data shows that rates have risen by 14% over the last six months alone. The average flexible workstation rate in Leeds is now £391pcm. Demand has increased by 15%, however supply has only increased by 6%, which is pushing rates up.

In Manchester, larger corporates are driving recovery in the city, with workspace for 25+ desks experiencing a 78% increase over the past 12 months. With only 3% of available office space that can accommodate this size of organization in Manchester and occupancy rates at 85%, space is a premium. While rates have so far only increased by 4% to £354pcm, with demand up 16% and supply up just 4%, Instant predicts that we will see rates increase in the not-too-distant future.

“On the hunt for cost reduction, many businesses are incorporating regional hubs into their office portfolios or relocating their offices away from London. But pure cost is not the only driving factor, as regional locations also provide the opportunity the opportunity to tap into wider talent pools,” said Lucinda Pullinger, The Instant Group’s UK Managing Director.

“While rethinking their real estate workspace strategy, we are seeing more of our clients considering the option of having a base in London with offices across the regions to cater for more hybrid working policies,” added Pullinger. “With work now something you do, not so much somewhere you go, the demand for premium space is growing as employers look to entice their workforce away from the home office.”

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Instant’s data is based on its market leading flexible workspace platform which placed customers in flexible workspaces in over 225 cities and towns across the UK in the last 12 months.

ABOUT THE INSTANT GROUP

The Instant Group has been rethinking workspace since 1999 with over 250 experts across more than 150 countries. Instant enables agility and operational resilience for businesses of all sizes from inception through to delivery and management. The global team advises on commercial real estate solutions from coworking and serviced offices to fully customized managed offices, modular office builds and portfolio strategy. Clients include Amex, Barclays, Prudential, Booking.com, Shell, Jaguar Land Rover and Worldpay. Instant has offices in London, Newcastle, Berlin, Budapest, Haifa, Istanbul, Paris, Dallas, New York, San Francisco, Hong Kong, Kuala Lumpur, Singapore, Sydney, and Melbourne.

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Established in 1999, The Instant Group is a workspace innovation company that rethinks workspace on behalf of its clients injecting flexibility, reducing cost and driving enterprise performance. Instant places more than 11,000 companies a year in flexible workspace such as coworking, serviced, or managed offices including Barclays, Prudential, Capita, Jaguar Land Rover, Booking.com, and Worldpay making it the market leader in flexible workspace.

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