Warsaw joins top 5 European cities for flex office take-up

According to the latest research from Savills and its flexible office specialist Workthere, London City remains the most active flexible office market in Europe with the sector accounting for 13 percent of all office take-up in H1 2023. Prague follows with (8 percent), Amsterdam (6 percent), Madrid (5 percent) and Warsaw (4 percent).

The international real estate advisor says that Flex offices accounted for 4 percent of total European office takeup during the first half of this year.

Ed Bouterse, head of Workthere, Europe, and flex portfolio management, EMEA, says: “Across Europe, we are seeing the flex office sector bounce back from the pandemic as companies focus on cost management while trying to secure the best available space. Overall, we believe flex office operator expansion will increase in 2024 to circa 5-8 percent of take-up in Europe, once contract occupancy approaches the 85 percent mark.

“As a result of stable demand and higher occupancy, London, Amsterdam and Warsaw have reported 10 percent growth in flexible office desk prices year on year, and we are seeing costs in other European markets increase too for the same reasons.”

Mike Barnes, Associate Director, Savills European Research, comments: “Given employer hiring sentiment has shown signs of weakening over the last three to six months, flex contract occupancy growth will be supported by companies looking for flexible terms to ensure they optimise the right level of workspace. We are also seeing a shift in demand for best-in-class flex space, both for ESG reasons and to attract and retain talent which often includes a desire for an enhanced amenity offering.”

Thomas Jodar, Associate Director, Workthere Lead Poland comments: “Across Warsaw, employers are looking for top locations and best-in-class space in order to attract talents and enhance office time. Especially newcomers are willing to bring people to the office and build the right culture. Amenities as well are key in driving this trend.”