The rise of hybrid working, changing tenant expectations, and the growing demand for agility have redefined the office sector. For landlords, flexible workspace is no longer an emerging trend, it is a strategic opportunity. To help landlords navigate this shift, technologywithin has launched ‘Breaking into Flex – a guide for landlords entering the flexible office market.’ The in-depth report is designed to demystify the flex landscape and equip landlords with the insights they need to enter the market with confidence.
Produced by flexible workspace technology experts technologywithin, the report brings together practical insights from across the flexible workspace ecosystem. Taking insight from Workthere, Interaction, Spaces to Places, HEWN and Osborne Clarke - experts in their chosen fields, including real estate advisory, flexspace operations, legal and design and fit-out - the guide covers every stage of the flex journey. From choosing the right business model to designing the space, setting up the tech, attracting occupiers, and scaling operations, as well as featuring case studies and insights from landlords already established in the Flex sector, including CEG, GPE, Landsec’s Myo, British Land’s Storey, and Legal & General.
Jon Seal, Managing Director of techologywithin, says: “The demand for flexible office space has surged in recent years, driven by a profound shift in how businesses use office space. As hybrid and remote working models become the norm, flexible workspaces have emerged as a key solution to meet the evolving needs of both employees and businesses. This shift has transformed flexible office spaces into a mainstream, high-demand option, making them a crucial asset for landlords looking to adapt to changing market conditions.”
Tom Leahy, Director and co-head of Workthere, adds: “Flexible spaces are no longer an "add-on", but an integral part of both a landlord’s and occupier’s portfolio. They have become a fundamental component of the office market, with higher occupancy rates, lease durations comparable to traditional office spaces, and, in many cases, the potential for premium rental returns.
“Overall, the flexible office space market has seen impressive growth, with operators in the UK taking over 1.06 million sq ft of space in 2024, marking the highest level of demand since 2019, and a 12% increase from the previous year.”
Despite a slight decline in inquiries, transaction levels rose by 35% last year, reflecting a solid underlying demand for flexible spaces. A significant driver of this growth is businesses outgrowing their current office environments, with 33% more businesses seeking larger spaces compared to previous years. Additionally, the number of businesses dissatisfied with their existing office spaces has doubled to over 10%, highlighting a shift towards higher-quality workspaces.
So, what does it take for landlords to break into the flexible office space? Theresa White, Head of Workspace at CEG, says: “Many landlords are interested but hesitant, especially larger, more traditional ones with layers of red tape. That is where we have had an edge: a flat management structure, firsthand leadership, and a willingness to mobilise quickly and take calculated risks.”
Landsec’s MYO now has 235,000 sq ft of operational flexspace, with a further 135,000 sq ft under construction or in detailed design. Natasha Morris, Director of Flex Workspace and Head of Myo at Landsec, says: “It complements the Landsec workspace offer by giving access to smaller customers or smaller space requirements to Landsec-quality buildings which we had historically been unable to accommodate within our traditional portfolio. It also sits alongside our other office product, Created, which is focussed at the 5,000 to15,000 sq ft fitted and managed market.
“As part of the ecosystem of our workplace portfolio, customers can use MYO for their flexible office needs but also for offsite meeting room, project rooms and event spaces. We’re able to meet more of our customer’s needs through offering a range of high-quality solutions and services.”
GPE’s move into flexible workspace was driven by market trends and a shift toward prioritising customer needs. As demand for flexibility grew across both traditional and non-traditional customers, GPE recognised the need to adapt. According to data from Workthere, The Flex market is sizeable and growing, with 77% of all West End deals for less than 5,000 sq ft being for Flex office space. Market opportunity and early success at GPE’s 16 Dufour’s Place confirmed this strategy, prompting the company to explore more flex opportunities within its portfolio.
Nicola Jones, Customer Experience General Manager at GPE explains: “Businesses that would typically opt for traditional leases are now actively seeking flexible managed solutions. Our recent five-year deal with Next at Alfred Place is a prime example - an established customer embracing the operational ease and adaptability of a flexible model.”
Navigating the complexities of flexspace lease agreements may seem daunting to those thinking of entering into the market, but the guide has this covered, with Jonathan Mills of Osborne Clarke explaining the difference between a traditional lease, management agreement and ‘hybrid lease’ (or revenue share lease): “A well drafted revenue share lease can look similar to a management agreement in many respects – bringing mutual benefit to both parties but in a more traditional structure. There is clearly room in the market for both documents, depending on the desired approach or business model of the operator. We are seeing both approaches being welcomed in RfPs and tender processes.”
Jon Seal adds: “As well as covering the practicalities of moving into Flex, this report features first-hand learnings from major landlords who have made the leap, with case studies offering candid reflections, successes, and lessons learned giving a real-world view of what it takes to succeed, both in the UK and on the continent.
“In terms of technology, when you’re just starting out in flex it can be tempting to piece things together using whatever tools you already know - basic booking forms, inboxes, and off-the-shelf apps. But this kind of patchwork setup quickly creates more problems than it solves. We’ve seen operators try to manage bookings without a system, chase payments manually, or try and deal with frustrated members because there’s no way to monitor or manage WiFi performance. It’s inefficient, error-prone, and ultimately unsustainable as you grow.
Flex has matured, and the tech behind it needs to match. What works for traditional leased space simply doesn’t deliver in this environment. Operators now need purpose-built, integrated solutions that streamline operations, reduce overheads, and enable seamless service delivery. In flex, operational efficiency starts with your tech stack—and getting it right is non-negotiable if you want to grow”.
Jon concludes: “Whether you are considering partnering with an operator, launching your own brand, or just exploring your options, ‘Breaking into Flex’ is a practical resource to help you move forward with confidence.”
Click here to access more information, insights, and case studies for getting started in flex.