UK property firm Grosvenor is to build a 300,000 ft2 (27,870 m2) flexible and fitted workspace portfolio by transforming around 20% of its existing office properties across London and other major cities.
Grosvenor has opened 18 new flex office locations in the last year, taking its total portfolio to 135,000 ft2 across 20 sites, with each leasing ahead of expectations.
In London, Grosvenor’s aim is to create flexible office spaces which are easy to occupy and ideal for modern hybrid working. Alongside the business’ established operation in Eccleston Yards, 25EP, Grosvenor’s new locations in the capital include 128 and 162 Buckingham Palace Road and Fivefields in Victoria as well as 50 Grosvenor Hill, 34 Brook Street and 35 Grosvenor Street in Mayfair each providing private offices hosting from 2-60 people, meeting rooms and hot desks.
Eleven new fitted suites capable of hosting up to 50 people have also opened in Manchester, Birmingham and Bristol in the last 12 months.
James Raynor, CEO, Grosvenor Property UK said: 'The flight to quality is as true for flex as it is for traditional office space. We see a significant opportunity in bringing together the right teams, products and services to deliver a premium offer that provides occupiers with the choice and flexibility that they are looking for. Our experience at 25EP, and significant demand for our new locations, shows that we can successfully create an atmosphere and collaborative opportunity for businesses that can’t be replicated in a home working or conventional office setting.'
The market for flex alone has grown to 15% of the UK’s office market and demand continues to expand as businesses increasingly move towards shorter leases and service-led space. This contrasts sharply with the clear undersupply of provision in London’s Mayfair and Victoria sub-markets which have just 10% and 5% of office space allocated to this product, according to research from Savills.
Across the rest of 2024, Grosvenor expects to add eight further flexible locations in London and two fitted spaces in Manchester, increasing the portfolio by approximately 46,000 ft2.
James Raynor added: 'Flex and our ongoing investment in new products and services that meet changing occupier needs is a core part of our growth strategy. We’re moving quickly and, by the end of this year, we expect to have delivered over half of the space dedicated to this plan.'
