A report from Spaces to Places launching today during the global urban festival Marché international des professionnels de l’immobilier (MIPIM), has revealed that the UK flexible office market is increasingly polarised, as operational intensities rise further, and consumer expectations soar.
The UK Flex Office Market 2025: Strategies, Players, and Business Models from Spaces to Places, identified 52 players in the UK with a portfolio of more than 10 locations. New analysis highlights the deepening divide between emerging premium, hospitality-led providers (established on average in 2012) and established owner-operator property-led providers focused on value offering (established on average in 1981).
“Even at the value end of the market, it’s more than providing desks and chairs—convenience, cost, and community are essential. At the premium end, expectations have soared, with offerings ranging from drinks trolleys at desks and vanity rooms to restaurants meeting five-star hotel standards,” Zoe Ellis-Moore, CEO and Founder of Spaces to Places explains.
Key Report Takeaways:
- Four primary routes to market were identified: Owner-Operator (35%), Management Agreement (16%), Franchise (3%), and Lease (46%)
- Emerging players prioritise premium, hospitality-driven, and management agreement models, exemplified by brands like x+why and Spacemade. With providers also responsible for full front of house building experience including reception, F&B, and club spaces.
- Established providers prioritise ownership and value-driven offerings for example Unit Management and Lenta Spaces.
- Providers have a varied ownership structure: 69% are privately owned, 14% are family-run, 13% are publicly owned, and 4% are council-operated.
- While most providers (67%) fall under the Mainstream category, the Premium segment is expanding and now accounts for 20% of the market, with Value and Niche providers making up 7% and 6%, respectively.
- Nearly half (46%) of key players operate in both London and regional markets, whereas 39% are focused solely on regional locations, and 15% are exclusive to London.
- Flexible, agnostic deal structures are being adopted by landlords and providers for examples Hines and W.RE.
- Hypermixity challenges conventional classifications, necessitating new valuation approaches for flex offices.
The Future of Flex: Investment and Standardisation
Institutional investors are increasingly engaging with the sector as traditional landlords integrate flex into their portfolios. The Workspace Intelligence Network (WIN) provider sharing data initiative is a pivotal step toward greater market transparency and standardisation.
Adapting to Operational Real Estate
As flex office adoption continues to rise, landlords and providers must innovate their approach to meet evolving occupier needs and maximise the value of their assets with more operationally intensive services levels required.