Serviced office rentals have seen a dramatic increase in popularity in recent years. The pandemic has changed the way businesses think, and flexibility is now a priority.
In this article, we offer our predictions for the future of serviced offices and coworking spaces in London and the UK.
The Future of Serviced Offices
Continued Demand for Short-Term Leases
At FreeOfficeFinder, we have found that the demand for short-term leases is not slowing down.
Flexibility is crucial as businesses still try to adapt to hybrid working while navigating uncertainties. Short-term leases allow companies to scale up or down quickly without committing to a long lease.
We expect this trend to continue with more organisations looking to serviced offices that offer flexible rental options.
Growing Focus on Sustainability
We are receiving an increase in enquiries from clients looking for office space which aligns with their goals of becoming a more sustainable organisation. This, in turn, is prompting providers to prioritise their green certifications and policies.
Sustainability is becoming a core focus for many companies, and we predict that this will greatly impact serviced offices.
We anticipate a rise in serviced office buildings that are energy efficient, promote renewable energy and use eco-friendly building materials.
Integration of Advanced Technology
Integrating advanced technology is another trend that will shape the future of serviced offices.
More and more businesses are demanding smarter, more efficient workspaces, and serviced office providers need to meet that demand. Investing in high-tech features will enhance the office experience and help streamline operations.
Building management systems will optimise energy usage and control HVAC systems to create a comfortable environment. AI could even play a part in space management, monitoring occupancy levels and optimising space usage.
Rise of Themed Offices
As competition increases between serviced office providers, we expect a rise in niche office spaces tailored to specific industries. For example, some providers may cater to media or creative industries, whilst others may offer more formal environments for law firms or legal services.
By setting themselves apart from the competition, providers can create a brand and stand out.
Our Predictions for London’s Serviced Offices
Increase in Premium Serviced Office Amenities
Some serviced office providers in London are beginning to offer luxury amenities to provide more value for money to tenants. Office spaces in the City and areas like Mayfair offer amenities such as high-tech gyms, roof terraces, cafés and wellness programmes.
In the future, we see this trend gaining traction with businesses willing to pay a premium for offices with high-end features that provide a luxury experience for their staff.
Higher Demand for Smaller Workspaces
Hybrid working is becoming more common in London. As companies no longer need a desk for each employee, the demand for smaller offices is increasing.
Businesses are also turning to smaller workspaces in Greater London locations to use as satellite offices or hubs. These spaces offer a cost-effective option whilst providing shorter commute times for employees.
We predict the demand for smaller offices will continue growing as more London companies switch to hybrid working models.
Serviced offices will play a greater part in the demand for smaller offices as they provide a flexible plug-and-play solution. Businesses can move in and trial a space on a shorter contract than traditional leased space.
The Future of Serviced Offices in the Rest of the UK
Providers Will Expand into Regional Cities & Towns
While London is still one of the most popular regions for serviced offices, more providers are looking for locations outside the capital.
As companies seek to lower their costs, their employees are looking for a better work-life balance, making regional cities and towns attractive locations for office space. We expect cities like Birmingham, Manchester and Bristol to see a significant increase in serviced offices to cater to this growing demand.
Rise of Boutique Serviced Office Providers
In addition to major serviced office providers expanding, boutique providers will likely grow in the rest of the UK.
These providers offer a more personalised experience than their larger counterparts and often offer unique workspaces in converted buildings such as warehouses or factories. Small businesses, start-ups, and creative industries looking for individuality often find this very appealing.
Focus on Community & Collaboration
We expect serviced offices of the future to strongly focus on community and collaboration. Unlike London, where competition is stronger, and the market is larger, regional serviced offices can create close-knit communities.
In the rest of the UK, serviced offices will be key in supporting local economic development by offering affordable office space for small businesses, freelancers and entrepreneurs. The flexibility of serviced offices allows businesses to grow within the same building, supporting the local economy.
Connecting with local businesses, universities, and innovation hubs is a great way for office providers to boost collaboration. This will offer tenants access to resources, talent, and potential funding opportunities within the area.
By creating collaborative working environments, serviced offices will help foster a community between tenants renting office space in the same building. We predict that the number of networking events and workshops hosted by providers will increase, allowing organisations to build connections and partnerships.
Rising Demand for Suburban & Rural Office Spaces
As work-life balance is becoming a priority for UK employees, there will be a rise in demand for serviced office spaces in suburban and rural areas.
Many employees are looking for shorter commutes and an alternative to crowded city centres, which suburban offices provide. These workspaces also offer access to green surroundings and a calmer working environment.
For businesses, renting office space outside a city centre offers the dual benefit of reducing rental costs whilst appealing to employees looking for a better work-life balance.
More Unused Buildings Converted to Offices
More retail spaces and industrial sites will be converted into serviced office buildings in the future.
With the demand for traditional retail spaces declining, there is a greater opportunity to repurpose vacant shops and warehouses. For serviced office providers, this can be more cost-effective outside of London, where renovation costs are higher.
From an environmental perspective, this trend will minimise the need for new buildings and can preserve the architectural heritage of many small towns.
Converting existing buildings into offices will play an important role in regenerating parts of the UK, turning vacant spaces into thriving hubs.
Integration with Local Transport Hubs
Office space near London’s major stations such as Kings Cross, Euston and Waterloo) is highly sought after. Other regions of the UK have noticed this shift and have started to follow suit.
In the future, we expect serviced offices to be located near all or most of the UK's major transport hubs. As more people want to work closer to home, easy access to public transport will be essential. Strategically placed serviced offices near bus terminals and train stations will become the norm.
Our Predictions for Coworking in the Future
Increased Demand for a Wide Range of Memberships
Coworking memberships are currently more flexible than serviced office contracts as they allow you to rent office space for a week, or even a day. We predict that the future of coworking will see a higher demand for these memberships as startups continue to look for flexible workspace.
Coworking spaces will also offer a wider range of models to cater to different requirements, from longer term agreements to corporate memberships and even family-friendly options.
Rise of Specialised Spaces
To accommodate the new coworking models we mentioned, such as family-friendly memberships, we anticipate there will be a rise in specialised spaces. For example, some spaces may offer childcare facilities or allow children on certain days.
Spaces could also be designed for creatives, tech companies, and legal firms, which could include specialised equipment and layouts that cater to their unique requirements.
Growth of ‘Work from Anywhere’ Networks
The rise of working from home has led to “working from anywhere”. This will continue to gain momentum as technology advances and attitudes to remote work change. Coworking providers will expand their networks and provide access to shared offices in different cities and countries.
This trend is great for remote workers and international companies looking for consistency in their workspaces.
Stronger Focus on Privacy & Security
As the demand for coworking spaces grows, providers will have to focus on privacy and security. With more sensitive data being handled in these workspaces, cybersecurity will have to be upgraded, and private areas may need to be offered. Soundproof meeting rooms, secure access systems, and private booths will be featured in all spaces.
Integration of Hospitality Features
Another trend that will shape the future of coworking is the integration of hospitality features. Coworking spaces will start to resemble boutique hotels with concierge services, event spaces and high-end food options.
This will blend work and lifestyle, providing a more holistic experience for those with coworking memberships.
Rise of Additional Membership Perks
Coworking memberships will offer more than just a workspace. It will be common for businesses to receive additional perks such as local business discounts, access to networking events and wellness programs.
These perks will help to create loyalty and a greater sense of community within the coworking spaces.
Improved Digital Community Platforms
Finally, digital community platforms will play a more important role in the future of coworking. Providers will offer digital tools to help businesses network, collaborate and build a community. Features like virtual events and member directories will enhance the overall coworking experience.
As the world of work evolves, serviced offices and coworking spaces in the UK will inevitably undergo significant changes to meet various business needs. Whether in the hustle and bustle of London, the vibrant hubs of other UK cities or rural areas, the future of office space will be further defined by flexibility and work-life balance.
