Management Agreements. Managed Offices. Mergers & Acquisitions.
The market has matured, and that changes everything.
The UK flexible office sector spent years proving the model works. 2026 is when the structures catch up. As we step into the new year, three converging forces are reshaping how flex space is owned, operated and scaled. We call them the 3 MAs—and they’re the trends we’re watching most closely.
1. Management Agreements — The New Default
Landlords are increasingly choosing operational partnerships over traditional leases. And the data tells the story clearly.
According to Savills, management agreements made up just 9% of flex provider transactions pre-COVID. By 2024, that figure had risen to 41%. As of Q3 2025, it hit 53% the highest proportion recorded in the last five years. Workthere’s Flexmark 5.0 Survey reveals that 78% of UK providers now prefer management agreements as their growth model, up from 45% in 2023.
Why the shift? It’s a capital-light structure that aligns incentives. Providers expand without the balance sheet burden of rent obligations. Landlords retain ownership while benefiting from operational upside and they get to influence space design and fit-out. In uncertain markets, these arrangements are more resilient; there’s no fixed rent weighing on providers when occupancy dips.
We’ve tracked providers like x+why, Runway East, Techspace, and Spacemade actively targeting landlords through dedicated partnership pages. The model has been adapted to include white-label approaches for landlords who want operational control without building their own brand from scratch.
2. Managed Offices — The Segment to Watch
This is where the numbers get dramatic.
Managed office supply has increased by a staggering 895% since 2019, according to Valve data. Rubberdesk’s Q1 2025 report shows managed office availability grew 111% year-on-year—while serviced office growth sat at just 6.1%. The managed segment is absorbing strongly too: Q3 2025 saw managed availability contract 11% quarter-on-quarter despite desk rates surging 4.8% to £828 per month in London.
What’s driving this? Occupiers want something between a serviced office and a traditional lease. They want self-contained floors, private amenities, and longer terms (typically 12–48 months versus 1–36 months for serviced). They’re willing to pay premium pricing for the privacy and personalisation that managed offices deliver.
The demand signals are clear. Workthere reports that 78% of Central London briefs under 5,000 sq ft in 2024 requested managed or fitted space. London flex enquiries rose 40% in Q1 2025 compared to Q4 2024, with typical deal sizes of 2,000–4,000 sq ft priced between £150–£240 per sq ft.
Great Portland Estates‘ flex portfolio demonstrates the value creation potential: average lease lengths of 3.5 years, fully managed rents of £207 psf, and annualised NOI up 93% since September 2024. Their fully managed values were up 12.8% in FY25.
Many larger providers like Fora and Uncommon are increasingly working with enterprise clients, effectively ‘playing’ in the managed space. As Dan Brown, Co-Head of Workthere UK, puts it: “This trend continues to blur the lines between traditional leases and serviced offices.”
3. Mergers & Acquisitions — Consolidation at Scale
The UK has over 228 serviced office providers running four or more locations. That level of fragmentation creates both opportunity and confusion. As the sector professionalises, the market will naturally consolidate around 10–15 strong, scalable providers with proven business models, trusted brands, and consistent delivery.
The deal activity in 2024–2025 signals what’s coming. In May 2025, Crosstree Real Estate Partners acquired Argyll and its 25 premium London locations for approximately €384 million. Earlier in January 2025, CBRE completed its acquisition of Industrious by purchasing the remaining 60% stake, valuing the company at $800 million and creating a new Building Operations & Experience segment managing 7+ billion sq ft globally. Other notable transactions include Sirius Real Estate‘s £245m acquisition of BizSpace, the Fora-TOG merger creating a £1.5bn combined entity, and Yardi‘s 60% stake in a WeWork entity for $337 million.
Heavyweights like Blackstone, Carlyle Group, and Hines have already injected institutional discipline into operations. This isn’t venture capital looking for tech unicorns it’s real estate capital backing proven cash-generating businesses.
The CBRE–Industrious deal is particularly telling. Industrious has grown revenue at a compound annual rate of over 50% since 2021 using an asset-light, partnership-based model. When the world’s largest commercial real estate services firm makes this bet, it signals where institutional capital sees value.
The Bigger Picture
These three trends are interconnected. Management agreements enable providers to scale without capital constraints. Managed offices create premium products that justify longer terms and higher returns. M&A activity backs the winners who can operate at scale with institutional-grade standards.
The flexible office sector is no longer a tech play or a coworking curiosity. It’s a mature, cash-generating, service-led real estate model. London occupancy sits at 86% (up from 82% in H1 2024). Take-up hit 1.06 million sq ft in 2024 the highest since 2019. Global sentiment surveys show 85% of providers expect to expand in 2026.
The industry spent years proving the model works. Now it’s about proving it can scale, professionalise, and deliver returns.
The 3 MAs are how that happens.
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