With remote and hybrid work continuing to grow in popularity, it is not surprising that Londonโs coworking market continues to expand atย pace. However, growth is not evenly spread across the capital. Some boroughs are emerging as clear hotspots, driven by demand for flexible work, hybrid models, and the repurposing of older office stock. This post will take a look at the fastest-growing boroughs for coworking spaces.
Central London leads the pack
Unsurprisingly, Central London is leading the way when it comes to coworking spaces. Greater London now hosts 1,200 coworking spaces, which equate to nearly 30% of the UK total. The highest concentration of these occurs in Central Londonโs business districts.
City of London: High density, high demand
The City remains one of the most saturated coworking zones in the UK, which is driven by the financial sector demand and premium operators. This means it is a great place for those seeking a high-spec coworking space in the beating heart of the capital.
Shoreditch & the City fringe
Shoreditch remains a popular place for startups due to its strong creative tech clustering, appealing location, and lower rents than the City (ยฃ50-ยฃ70 per square foot). This makes it an appealing coworking spot for those looking for a central location without the City costs.
Southbank & Southwark
Southbank has seen year-on-year rent growth of up to 17%, signaling strong demand for modern, ESG-compliant buildings – a key driver of coworking expansion. This is encouraging coworking operators to expand into this area, which is a desirable place for people to work by the river and with strong transport links.
West End: Tight vacancy, premium growth
Vacancy in the desirable West End has dropped to around 7%, its lowest in 18 months, making it one of the most competitive areas for new coworking supply. This limits supply but increases demand for flexible solutions with coworking providers capitalized by offering premium spaces to high-end clients.
Outer boroughs rising
It is not just Zone 1 that is thriving. While Central London dominates, there are a number of boroughs outside that are gaining traction with strong demand, thanks to the shorter commuting time. This includes places like Islington, Hammersmith and Fulham, Stratford, and Wandsworth.
With hybrid and remote work on the rise, there is a growing demand for coworking spaces in the capital. The above are a few of the places that are seeing the most growth in coworking spaces, revealing how the capital is evolving as work habits and patterns shift.
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