UK Flex Office Market 2025: Trends, Players & Evolving Strategies – A Deep Dive into the Yardi Webinar 

In the world of commercial real estate, few sectors have experienced as much transformation as the flexible office space market. The 2025 Spaces to Places UK Flex Office Market Report, sponsored by Yardi, offers a comprehensive lens on this landscape. To bring its insights to life, Justin Harley, senior director at Yardi UK, sat down with Zoe Ellis-Moore, CEO and founder of Spaces to Places. To unpack the report’s findings and debate the trends shaping the future of flex.

A Strategic Compass for the Flex Market

This report marks the second edition in the Spaces to Places series. Providing a deep dive into over 50 UK flex office providers with “10 or more locations.” It’s more than just a market snapshot — it’s a strategic toolkit for decision-makers. The report is crafted to serve three primary purposes: 

1. Empowering New Entrants: It demystifies the sector for those entering the world of flexible workspace. Offering a foundation to understand market dynamics and build confidence. 

2. Guiding Stakeholders: For landlords, investors and workspace providers, it clarifies the competitive landscape, routes to market and performance benchmarks. 

3. Challenging the Sector to Think Forward: Perhaps most importantly, it prompts the industry to confront its challenges head-on and look toward long-term opportunities. 

During the webinar, Harley and Ellis-Moore discussed the findings through three critical lenses: how we define the flex market, who’s playing in it and how the business models are evolving.

1. Rethinking the Flex Market: Definitions & Geography 

The conversation began with defining what “flex” really means — “a surprisingly controversial topic,” as Ellis-Moore noted. The report uses three key classifications to make sense of the varied flex offerings: 

• Co-working: Pay-as-you-go or monthly memberships with hot desks, lounges, and meeting rooms. 

• Serviced Offices: Fully-fitted plug-and-play offices under 1–36 month contracts, inclusive of rent, utilities and furnishings. 

• Managed Offices: A hybrid of flex and traditional office space for larger teams (12–48 month contracts). Offering full-floor, customisable and cost-effective solutions. 

Interestingly, the report chose to focus on serviced offices while excluding pure co-working and managed offerings due to scale and definitional clarity. Yet, as Ellis-Moore emphasised, the “growth of managed offices remains a compelling trend” worth watching. 

Geographically, the report mapped over “1,230 flex locations,” concentrated mainly in key UK cities. Such as London, Manchester, Bristol, Birmingham, Leeds and Glasgow. While questions of market saturation inevitably arise, Ellis-Moore stressed the importance of analysing “worker-to-space ratios, changing workspace use” and emerging occupier needs. 

She highlighted how office spaces today are hosting everything from traditional work desks to “live-streaming setups for professional gamers.” With hybrid work becoming the norm and demand for “fit-for-purpose” office formats growing, the conversation turned toward how communal and multifunctional spaces are becoming central to the flex evolution. 

2. The Players: Traditional Landlords, Pioneers & Premium Disruptors

One of the most surprising findings from the report was the entrance of traditional real estate players into the flex arena. Harley noted that “11 of the surveyed providers” come from a classic landlord or real estate background — a significant shift in how these players view operational real estate. 

Ellis-Moore elaborated on this shift, explaining that many of these new entrants have only been “active in Flex for the past six years.” While some are still feeling their way through unfamiliar territory, others are discovering just how lucrative and performance-driven flexible offerings can be. A prime example? Traditional real estate firms are realising their flex arms outperform expectations, prompting internal questions such as, “How can we do more of this?” 

The segmentation of providers also revealed telling patterns: 

• Established Providers: These operators are often born from property management roots. They tend to dominate the value segment, offering stable and scalable solutions. 

• Newer, Niche Entrants: These providers cater to specialised markets and are often linked to specific industries like science parks or innovation hubs. 

• Mainstream & Premium Operators: The latest wave of entrants is particularly strong in the hospitality-led, mainstream and premium segment. These brands are reshaping expectations by offering curated experiences and high-end amenities. 

As Ellis-Moore aptly put it, the market is beginning to resemble retail dynamics, asking if a location needs a “Waitrose” or a “Sainsbury’s” style offering. Each brand is finding its niche and the sector is rich with opportunity for those who can align with the demands of modern occupiers. 

3. Business Models & Strategic Flexibility 

The third half of the webinar explored the diverse business models shaping the flex sector. The report grouped providers into four main models: 

• Owner Operator 

• Management Agreements 

• Franchises 

• Lease 

Each model brings a unique blend of control, risk and profitability. Ellis-Moore noted that the data had to be parsed “building-by-building,” revealing just how nuanced the landscape is. Many providers “mix models across their portfolios” based on location-specific strategies, financial risk tolerance and market maturity. 

Interestingly, while “leases dominate” the market, management agreements tend to gain popularity during “economic uncertainty.” Franchise models, led primarily by players such as “IWG,” notes Ellis-Moore, are growing but remain a smaller model in the market. A new category is also emerging — “hybrid lease/management agreements” or “profit-share” models, reflecting how adaptable the flex market has become. 

This diversity underscores a larger question debated during the webinar — “Should we stop isolating flex as a separate sector?” 

Harley raised a valid point — “Flex currently comprises around 10% of total office stock,” but that distinction may be less relevant to occupiers. Ellis-Moore agreed, suggesting that, for most businesses, it’s about securing the right space, regardless of “whether it’s serviced, managed, or leased.” The terminology might matter to providers and landlords, but to users, it’s simply about “finding workspace that fits their needs” and enhances their experience. 

A Sector in Constant Motion 

The UK flex office market is no longer niche. It’s a critical part of the office ecosystem. As the Spaces to Places report and Yardi webinar highlight, the industry is being reshaped by shifting occupier demands, evolving business models and an influx of traditional players eager to embrace operational real estate. 

Whether you’re a seasoned provider, a landlord eyeing the flex model, or a newcomer navigating this complex space, the insights from this discussion offer invaluable perspective. 

The mindset has shifted, and the entire sector has evolved. Hospitality and wellness offerings are richer than ever, and innovation continues to grow. You can see how everything is progressing. 
– Zoe Ellis-Moore, CEO and founder of Spaces to Places

Watch the full “UK Flex Office Market 2025: Strategies, Players and Business Models” webinar for more insights into these findings. 

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