Our European Coworking Hotspot Index is focused on identifying ‘where next’ for coworking across Europe. By understanding where coworking is likely to go next, landlords and operators of commercial real estate can be on the front foot with respect to rethinking the design of their traditional office space.
Flexible workspace – including coworking – accounts for between 10-20% of leasing activity in Central London. WeWork, now London’s largest private tenant, has a valuation larger than any office REIT. But, where will the model expand next in Europe and what does it mean for traditional office space?
While coworking has become the buzzword for growth in demand for flexible leasing solutions, the operator offer is technically more nuanced. Tenants looking for more flexible commercial real estate have the choice of coworking spaces, serviced offices; and, for larger tenants the option of managed offices.
Agile working spaces have largely been driven by aggregating entrepreneurs and freelancers. While this remains a key source of demand, coworking is increasingly attracting small businesses and medium to larger sized corporates. Irrespective of the size of the firm, flexible lease lengths afford tenants the ability to grow or shrink their footprints as needed, providing options not typically available in traditional office lease terms.
European Coworking Hotspot Index (Source: Cushman & Wakefield Research)
The European Coworking Hotspot Index is simple: a ranking of key European cities based on a weighting of elements including scale, business environment, people and catalyst factors. The index covers over 40 key European cities, but this report focuses on a discussion of the top quartile cities only. The cities listed above are the most highly ranked European coworking cities according to our research.
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