It’s been five years since the pandemic turned the world of work upside down. In that time, expectations have skyrocketed, competition has intensified, and the best operators have evolved to meet the demands of a new workforce. But the market is splitting, on one side, hospitality-driven, premium providers are raising the bar for workspace experiences, while on the other, value-led operators are keeping things cost-effective and functional.
So, where is the market heading, and what does this mean for landlords, flex providers, and businesses looking for space? Our latest research, The UK Flex Office Market 2025: Strategies, Players, and Business Models, uncovers some major shifts that are shaping the industry.
From Desks to Drinks Trolleys
Gone are the days when an office meant a desk and some questionable instant coffee. Today’s workspace users, especially Gen Z, expect more. They’re moving jobs more frequently than previous generations and they don’t just want a place to work; they want an experience.
This shift has fuelled the rise of premium, hospitality-led providers. Think of operators like x+why, Flex by Grosvenor or Gilbanks that have taken inspiration from high-end hotels, adding everything from fully serviced restaurants and wellness facilities to concierge-style services. One provider even offers a drinks trolley service straight to your desk. Why? Because expectations have changed, and in this market, it’s the little details that count.
Why One Client Moved Over Milk
With workplace users more vocal than ever, even the smallest service change can drive people to switch providers. One business relocated its entire team because its provider swapped fresh milk for UHT. That’s how high expectations have become, even at the value end of the market: people expect quality and convenience.
Who’s Who in the Flex Market?
Our research identifies 52 major flex office providers in the UK operating more than 10 locations each. These players fall into four key business models:
- Lease Agreements (46%)
- Owner-Operators (35%)
- Management Agreements (16%)
- Franchises (3%)
Ownership structures also vary, with 69% of providers being privately owned, 14% family-run, and 13% publicly traded, showing just how diverse this sector is.
The Shift in Landlord-Provider Relationships
One of the biggest changes we’re seeing is how landlords and flex operators work together. Traditional long leases are being replaced by hybrid models, where landlords and providers share risk and reward. This shift is being driven by landlords recognising that they need to offer flexibility to stay competitive in a changing market.
London vs. The Regions: Where’s the Action?
Not all flex providers operate the same way geographically. Our research shows that:
- 46% have a presence in both London and regional locations.
- 39% focus solely on regional markets.
- 15% operate exclusively in London
With hybrid work on the rise, regional markets are thriving, but London remains a crucial hub for premium providers.
What’s Next? Standardisation, Investment, and Valuation
The UK flex office market is one of the most mature globally, attracting significant investment. Institutional investors and traditional landlords are now actively integrating flexible options into their portfolios. However, as the sector grows, there’s a need for greater transparency and standardisation. That’s where initiatives like the Workspace Intelligence Network (WIN) come in, helping to provide better data, valuation frameworks, and insights into this fast-moving market.
Final Thoughts: The Bar is Rising
Five years post-pandemic, the flex office market is stronger than ever, but the expectations have changed. Providers must either excel at premium hospitality-led experiences or focus on delivering unbeatable value. Anything in between risks getting lost in the noise, unless you have a strong brand or you’re a niche provider in a sector (see my other blog on niching How to target sectors as a flexspace operator | Spaces to Places).
The full report is available for download at spacestoplaces.co.uk/flex, and do reach out if you need any help.
