Birmingham urgently needs more flex office space if it is to accommodate growing demand from occupiers.
According to CBRE’s newly published European Flex Market Update 2025, the city has just 4% of total office stock – or 700,000 sq ft – dedicated to third party or landlord-operated coworking or serviced office space. In contrast, flex office space in Manchester is 6% of total office stock (1.7m sq ft), with London boasting 12% (c.15m sq ft).
Average occupancy rates in Birmingham are now 84%, an historic high, compared to 73% in Manchester.
Dan White, CBRE’s Head of Flex for the Midlands and South, says the statistics demonstrate the headroom for the growth of the flex sector in Birmingham.
He added: “Businesses are increasingly allocating more of their real estate portfolios to flexible space. In Birmingham, with occupancy rates at historic levels, their choices are narrowing.”
Two new flex operations have come on stream in the last month: Gilbanks has opened 22,000 sq ft of flex space at Five St Philips, with Covalt launching 27,000 sq ft at 1 Victoria Square.
White says he anticipates an additional 50,000 sq ft will be introduced to the market in H1 2026, including 24,500 sq ft currently under offer to a flex operator at Multistory.
Take up of flex space in Birmingham is dominated by the financial and professional services sector, which has accounted for more than 50% of transactions in the year to date. White predicts increased interest from tech, media and telecoms – the dominant sector in London – going forward.
White also forecasts an increase in demand for managed offices in 2026. A managed office is a private, fully serviced office tailored to a company’s requirements. Everything from design, furniture, utilities and daily operations is handled by a provider. It offers the privacy and branding of a traditional lease with the convenience of a serviced office.
“To date, we have just one example of this in Birmingham – Accenture’s 8,600 sq ft letting at Bruntwood SciTech’s Cornerblock. However, this hybrid occupational model is gaining momentum in London and I’m convinced we’ll see more of it here in the coming year,” he added.
