Professional and financial services overtake tech in flexible office market take-up

In 2022, professional and financial services accounted for 40% of deals, with tech at 45%. This year has witnessed a notable shift with professional and financial services leading deals signed YTD at 57%, and technology companies at 30%. This reflects a changing perspective, highlighting flexible office solutions as a viable real estate option not just for technology companies or start-ups but across all industries.

Kim Hogan, Head of Workthere Ireland, commented:

"The nuanced changes within the flexible office sector, especially in this transformative business environment, underline the agility and momentum of the industry. Dublin, especially the Dublin 2 area, remains attuned to the evolving demands of the modern workforce, epitomising adaptability in response to the transforming landscape.”

Key Market Insights:

1. Industry Shifts: In 2022, professional/financial services accounted for 40% of deals, with tech at 45%. This year j has witnessed a notable shift with professional/financial services leading deals signed YTD at 57%, and technology companies at 30%. This reflects a changing perspective, highlighting flexible office solutions as a viable real estate option not just for technology companies or start-ups but across all industries.

2. Client Demands Evolving: Alongside seeking collaborative environments, there's a heightened emphasis on strong public transport links. Clients are progressively seeking meeting rooms with high quality soundproofing and AV equipment, collaborative spaces, and robust connectivity.

3. Focal Point - Dublin 2: Dublin 2 is evidently emerging as the hub with 66% of deals signed  In core Dublin 2 year to date, a significant increase from last year’s 38%.

4. Amplified Average Term:  Historically typical flexible office terms were 6 – 12 months but this has been increasing year on year and now stands at 21 months, up from 17 months in 2022.

5. Desk Rates on the Rise: Reflecting the heightened demand for flexibility, the average desk rate in D2 has seen an increase, now averaging €610 (ex VAT) YTD, up from €590 last year.

Kim Hogan concluded:

"As the flexible office space market continues to grow and innovate, Workthere remains at the cutting edge, dedicated to guiding businesses of all sizes towards optimal and cost-effective solutions."