The Flex Office Debate – Key Insights from UKREiiF 2025

When institutional landlords like British Land and Landsec start launching their own flexible office brands, you know the market has reached an inflection point. The emergence of these “brandlords” signals a fundamental shift in how the commercial real estate establishment views flexible workspace. What was once seen as a disruptive has transformed into a potential profit centre worth mastering in-house. The debate at UKREiiF (The UK’s Real Estate Investment and Infrastructure Forum) , Leeds on 22 May 2025 revealed just how dramatically the conversation has evolved. 

The discussion brought together key voices from across the sector: Zoe Ellis-Moore from Spaces to Places, Zac Goodman, CEO of TSP, Jonathan Mills, real estate partner at Osborne Clarke, and Alex Kim from Castleforge Partners. Moderated by Alexandra Livesey, CEO of Clockwise, the panel examined whether flexible offices represent a sustainable profit engine or remain a costly experiment that the industry has yet to master. 

The institutional takeover begins 

Venture-backed startups dominated flexible workspace headlines for years, but the most significant development reshaping the sector today comes from institutional investors who once viewed flex as a nuisance tenant. Major landlords have shifted strategy dramatically, instead of handing over their buildings to third-party operators, they’re launching their own brands and keeping the operational upside in-house. 

“We analysed the London market, looking at providers with four or more locations. There were 60 of them. 10 of those were brandlords,” observed Zoe Ellis-Moore from Spaces to Places, highlighting how quickly established real estate players have moved into the space. 

The consolidation imperative 

Despite the sector’s growth, fragmentation remains its biggest obstacle. With hundreds of providers scattered across single or dual-location portfolios, the flexible office market lacks the economies of scale that drive profitability in comparable industries like hotels or retail. 

The path forward requires either organic growth to a significant scale or strategic consolidation. The most successful providers are those with the ability to offer customers seamless access across multiple locations, superior technology platforms, and reduced acquisition costs through brand recognition. 

“Is this something where it needs to be bigger than four site operators to be able to achieve something like that?” questioned Zac Goodman from TSP, pointing to the network advantages that larger operators can leverage to reduce customer acquisition costs and build loyalty. 

The hotel industry provides the roadmap here, where brands like Hilton offer franchisees multiple engagement models whilst maintaining consistent standards and global customer recognition. 

The service delivery reality check 

The flexible office sector has become notorious for operators claiming exceptional service whilst delivering mediocre experiences. This disconnect between marketing promises and operational reality undermines the sector’s credibility and makes it difficult for landlords to differentiate between genuinely capable providers and those simply riding the wave of market enthusiasm. 

“Everybody says they give exceptional service. It’s like 80% of providers will tell you that, but only 20% are delivering exceptional service,” noted Zoe Ellis-Moore, highlighting the gap between perception and reality in the market. 

This service delivery challenge extends beyond customer experience to fundamental operational metrics. Too many operators still can’t provide reliable data on fill rates, customer retention, or profit margins basic indicators that institutional investors require to make informed decisions. 

Beyond the experiment phase 

The flexible office sector is experiencing growing pains typical of an industry transitioning from a startup mentality to institutional maturity. The experimental phase, characterised by venture capital funding, rapid expansion, and innovation-over-profitability mindsets is giving way to demands for operational excellence and sustainable returns. 

This transition requires operators to prove their value proposition with hard data rather than aspirational metrics. Landlords need to see consistent occupancy rates, predictable cash flows, and transparent operational performance before committing significant square footage to flexible workspace models. 

“I think it’s time for the reality check to hit us after sort of this exciting 15-year jaunt of seeing all of these businesses come to fruition,” argued Zac Goodman, suggesting the sector needs to embrace its fundamental nature as a property management business rather than positioning itself as a tech disruptor. 

The winners in this new environment will be those who can demonstrate operational excellence at scale, provide genuine value to both occupiers and landlords, and build sustainable business models that don’t rely on endless capital injections to maintain growth. 

Want to dive deeper into how the flexible office sector is transitioning from hype to operational excellence? Download our comprehensive “From Hype to Operational Real Estate“ report for detailed analysis and actionable insights that can help you navigate this evolving market.