The amount of flexible workspace in Manchester is set to increase by 50% over the next three years, following WeWork and Spaces demand for space across the city.
According to Colliers’ Flexible Workspace Outlook Report 2019, co-working workspace in the city will grow to 61,205 sq ft in 2022 from 40,530 sq ft in late 2018. Demand for space by co-working giant WeWork and IWG’s flexible workspace arm Spaces has increased the provision of such space, according to the report.
WeWork now operates across five locations in the city and Spaces occupies Peter House and is due to take up the entire 116,000 sq ft at 125 Deansgate, currently under construction.
Agents have told EG that WeWork is looking to take up space in buildings offering 50,000 sq ft and upwards.
The number of employees occupying flexible office space across the city will rise from 8,106 at the end of 2018 to a total of 9,793 at the end of 2022 (based on 80% standard occupancy of such space) according to Colliers.
The report says that the growth in size of the Manchester flexible office market reflects similar expansion of the sector across Europe. The number of flexible workspace operators across Europe has grown 135% over the past four years, with flexible workplace centres increasing by 205% over the same period, according to the agent.
Colliers forecasts the number of office workers across Europe occupying such space will rise to 750,000 in 2022 with Berlin, Bucharest, Munich and Prague the cities predicted to see the most growth.
Peter Gallagher, director of national offices and head of Colliers International’s Manchester office, said: “The ongoing growth of flexible office space in Manchester is reflective of its expansion across Europe in terms of the number of sites, volume of space and number of operators.
“The shift towards ‘space as a service’, and not just a commodity is probably going to be the biggest driver of growth in demand for flexible workplace going forward. “However, even at the top end of the spectrum, total take-up remains marginal in comparison to the wider office market, suggesting the sector has not grown or expanded to excess.”
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