A new report from Rubberdesk reveals that London’s flex office market remained resilient in Q2 2025. Beneath this stability lies a powerful shift: businesses are increasingly turning to managed offices. These customisable, turnkey solutions offer flexibility without the burden of upfront capital investment. The London Flexible Office Space Report – Q2, 2025 shows strong occupancy across the capital drove a 6.5% contraction in available space, yet average desk rates held steady at £625.
The rise of managed offices
Managed offices now account for 2.9 million sq ft of space across London, growing 1.9% quarter-on-quarter and an astonishing 101.2% year-on-year. In Central London, the trend is even more pronounced, with managed space expanding 2.6% quarterly and 124.9% annually. Desk rates are holding strong, with city-wide averages around £788 and Central London hitting £850 – a clear sign that businesses are willing to pay a premium for quality and location, and in the case of managed offices, privacy.
Borough breakdown
But this surge isn’t limited to the city centre. West London, despite a 20.8% drop in available managed space, maintained rate growth, suggesting high occupancy and strong interest. East London saw managed office space grow 13.5% in Q2, with desk rates climbing 9.6% to £685. South London is undergoing a dramatic transformation, with managed office supply expanding 22.4% quarterly and over 1400% year-on-year, an indicator of major landlord investment in this emerging market. North London also saw managed space rise 23.2%, with districts like Islington leading the charge.
Serviced offices are being outpaced
While still a vital part of the flex landscape, serviced offices are being outpaced by managed offerings. Available serviced space declined 12.6% across London due to strong take-up by businesses, with desk rates remaining stable or rising modestly. East London’s serviced offices held firm at £445, while West London saw a 3.6% rate increase to £466. South London experienced rate pressure, falling 11.7% to £317, but continued to attract businesses seeking cost-effective workspace options.
Team size preferences
Team size preferences also reveal important trends across the sector. Mid-sized teams (26–50 people) are driving rate growth across East, North, and Central London. Enterprise-sized spaces (50+ people) remain stable or are growing, particularly in North London where desk rates reached £837. Smaller team spaces in West London saw significant rate increases.
State of the market
Commenting on the data, Ashley Diamond, COO, Metspace, Managed Office Solutions, says: “Managed offices can no longer be dismissed as a market fad. Instead, they are now recognised by increasing numbers of occupiers as a genuine, alternative way of using and maximising their office requirements.
“This growth is driven by the appeal of thoughtful service, the reassurance of a recognised brand’s reputation, and the quality of a well-designed space from a fit-out point of view. These are key factors in attracting and retaining occupiers; a seamlessly run, thoughtfully managed office can ensure lasting relationships, so it’s no surprise to see continued growth.”
“Landlords are now shaping the demand, not just reacting to it. The rise of managed offices shows how quickly the market is pivoting to meet the needs of modern businesses,” added Tom Petryshen, Rubberdesk.
