New WeWork Data Shows Office Demand Spiking Along The Elizabeth Line
New data from flexible office company WeWork has highlighted how demand for workspace near Elizabeth Line stations has increased dramatically since the line opened last spring.
Office rents along the Elizabeth Line rose between 45% and 123% in the 14 years between the line being given royal assent in 2008 and opening in 2022, Cushman & Wakefield data revealed last year.
But the data from WeWork shared exclusively with Bisnow indicates that growth in demand for office space along the line still has the capacity to increase as it becomes a fully integrated part of London’s transport network.
"What we know for certain is that high-quality, flexible workspace in sought after locations — particularly located next to large transport hubs and are accessible via TfL links — are proving popular amongst workers who have more flexibility over their working schedule,” WeWork Head of Sales and Revenue, International Ben Samuels told Bisnow in an email.
“Since the opening of the Elizabeth Line, we have seen higher footfall and a significant increase in bookings at our locations in Paddington, Canary Wharf, Tottenham Court Road, Farringdon and Liverpool Street.”
WeWork said that all-access bookings, which allows users to book a desk at any location globally, rose by an average of 28% at its locations near the Elizabeth Line between the line’s opening in May 2022 and November last year.
WeWork saw demand rise most strikingly at 5 Merchant Square in Paddington, where bookings increased 41% after the opening. Demand also rose sharply for flexible workspace in Canary Wharf, with all-access bookings at 30 Churchill Place increasing by 36% between May and November.
“The Elizabeth Line is unique, ideal for both Londoners and those who commute into the capital, and so as employees continue to drive the new criteria of what and where the office should be, we are sure to see significant growth along the Elizabeth Line,” Samuels said.
Last week TfL released data showing that journeys to Canary Wharf on weekdays are now at 90% of pre-pandemic levels and are higher at weekends, citing the Elizabeth Line as the prime cause. Journeys on the line have now surpassed the 100 million mark, higher than expected this long into its life.
“The Elizabeth Line has transformed our public transport capacity and reduced journey times, allowing more people to work, live and visit us and enjoy our extraordinary environment,” Canary Wharf Group chief executive Shobi Khan told City A.M.
WeWork’s Samuels said office demand near transport hubs would continue to increase given such locations allow people to work in the hybrid style more easily.
“Destination workplaces with shorter commute times will be table stakes for any workplace strategy moving forward, and so demand for office space next to any major transit hub will skyrocket,” he said. “Our locations in King’s Cross, Waterloo and Victoria are amongst our most popular, and our expansion at WeWork 123 Buckingham Palace Road in Victoria reaffirms this demand.”
WeWork said further data about bookings gathered from its London locations showed people were coming back to the office in greater numbers and were continuing to embrace hybrid work.
January saw WeWork's most conference room bookings ever as the office is repurposed as a destination for collaboration, in-person meetings, mentorship opportunities and innovation, WeWork said. In particular, the week commencing 9 January saw a 132% year-over-year increase in conference room bookings.
In the week of 23 January, WeWork saw a record for all-access bookings with a 57% increase over the same period last year.
“The UK office market, and particularly London, is leading the return-to-office charge, and at WeWork, this is certainly reflected across the board,” Samuels said. “Not only did we have a record-breaking month in terms of daily desk bookings this January, our occupancy rates remain consistently elevated averaging at about 80% across all our UK buildings.”
