UK: The British flexible office market is facing a growing divide between premium, hospitality-led providers and value-driven operators, according to a new report by the flexible workspace consultancy agency Spaces to Places.
The study, titled UK Flex Office Market 2025: Strategies, Players, and Business Models, revealed today at the global urban festival MIPIM, highlights how rising consumer expectations and intensifying operational demands are reshaping the sector.
The report, which analysed 52 UK flex space operators with portfolios exceeding 10 locations, reveals a deepening split between two dominant models.
Premium providers, often hospitality-focused and management-agreement-driven, are expanding rapidly, now making up 20 per cent of the market.
In contrast, established property-led operators continue to focus on value-driven offerings, with their average foundation dating back to 1981, compared to 2012 for premium brands.
The report identifies four main routes to market in the UK flex space sector.
• The owner-operator model, which applies to 35 per cent of spaces is used when operators own and manage properties directly.
• The management agreement model applies to 16 per cent of spaces and is increasingly adopted by emerging premium brands like x+why and Spacemade.
• The franchise model represents 3 percent of properties. While less common, it is growing in structured corporate environments.
• The lease model is the dominant structure, adopted by 46 per cent of properties. It is favoured by long-standing providers.
The study finds that 69 per cent of operators are privately owned, while 14 per cent are family-run, and 13 per cent are publicly traded.
It also emerged that the premium segment is expanding, now comprising 20 percent of the market, with value and niche providers representing seven per cent and six per cent, respectively.
Lastly, it was also found that nearly half (46 per cent) of key operators serve both London and regional markets, with 39 per cent focused solely on regional locations and 15 per cent operating exclusively in London.
As the sector continues to evolve, landlords and providers are adopting more flexible, hybrid deal structures. The study also highlights the rise of ‘hypermixity’, where traditional asset classifications blur, requiring new valuation approaches for flexible workspaces.
Institutional investors are taking greater interest in the sector, with traditional landlords integrating flexible office models into their portfolios. Initiatives such as the Workspace Intelligence Network (WIN) are playing a crucial role in improving market transparency and standardisation.
Zoe Ellis-Moore, CEO and founder of Spaces to Places said: “Even at the value end of the market, it’s more than providing desks and chairs—convenience, cost, and community are essential. At the premium end, expectations have soared, with offerings ranging from drinks trolleys at desks and vanity rooms to restaurants meeting five-star hotel standards.”
For further insights, see the full UK Flex Office Market 2025.
