By Tim Rodber, CEO of Instant Offices
At Instant Offices, we can gauge the confidence of enterprising UK starts-ups by the demand for office space. This year has seen aggressive demand, with enquiries for workspace up nearly a quarter in the first half of the year. And much of this demand stems from 1 – 2 desk requirements.
To try and find other data sets to establish this growth in SMEs, we also collected information on new company registrations from Companies House. The story the numbers tell is a positive one for the economy in the Capital.
The number of new business start-ups in London has also increased by a quarter in the past year. We can see that this growth has been driven across the Capital by technology firms, predominantly, but also by retail and creative services companies.
- Office enquiries up 21% in the first half of this year compared to last year
- In the South of England, enquiry numbers were up 39%
- Growth in non-flexible office enquiries, up 15%
Firms operating in the technology services sector increased by 200 per cent from 2014 to 2015, wireless and telecommunications businesses rose by 79 per cent and computer facilities companies by 51 per cent.
One of the biggest stories of the post-recession UK economy has been the shift to the Technology Media & Telecoms (TMT) and creative services sectors. For many, this is a positive step as our economy had, perhaps, become over reliant on financial services and had let our national heritage as innovators dwindle.
SECTOR | % +/- in Company Registrations 2014 – 2015 | |
#1 | Computers & software sales | 200% |
#2 | Textile wholesale | 170% |
#3 | Taxi operation | 117% |
#4 | Wireless telecommunications | 79% |
#5 | Computer facilities management | 51% |
But at Instant Offices, we have seen this evolution happen first hand with requests for office space driven by technology firms and marketing / media agencies.
These companies are innovators not only for the sectors in which they operate, but also in their approach to work. They often start out in alternative areas of London – Southwark, the City Fringe – and have led the way in taking flexible workspace, whether that is desk space in serviced offices, co-working or short term leases.
These firms are working in agile sectors – driven by rapid, project-led demand – and they have been very quick to seize upon new ways of working and up and coming areas of operation. They are a driving force behind the shifting dynamics of the UK economy and their growth is something to be celebrated.
The most recent research from London & Partners shows that London’s technology sector is on target to contribute as much as £18bn to the UK economy this year.
But the same report also recognises the fact that these firms face challenges to their growth, such as poor tech infrastructure and lack of access to capital and talent.
To ensure that this growth becomes an established, long term trend, there must be enough provision for these firms to find the space they require to expand – and space that is suitable for the agile way they work. As London’s economy is increasingly founded on innovation, those of us in the sector must ensure that the supply of office spaces matches this new agile approach.
In recent years, Instant Offices has worked with firms such as Uber, Hootsuite and Google. Companies which are now global giants. But when they first came to London, they needed easy access to work space that suited their plans and accommodated rapid expansion. If the Capital is going to continue to attract firms such as these, then it must be in a position to offer the space they need and have one eye on the future, as their rate of progress far outstrips that of the traditional property model.
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