UK flexible office space supply surges 32 per cent in Q1 2025

UK: The supply of flexible office space across the UK rose sharply in the first quarter of 2025, with new figures from flexible office marketplace Rubberdesk revealing a 32 per cent year-on-year increase in availability, pushing total stock to more than 8.6 million square feet. 

The report attributes the rapid growth to the rise of managed office spaces, which saw supply jump by 111 per cent compared with Q1 2024.

In contrast, traditional serviced offices experienced a more modest 6.1 per cent increase in the same period.

This uptick in supply has slightly lowered the median desk price, which dipped 1.2 per cent from Q4 2024 to £500. Despite this, prices remain 2.2 per cent higher than a year ago.

London remains the hub of the UK’s flexible office market, accounting for around 75 per cent of the national inventory. However, the capital’s own supply grew 39 per cent year-on-year in Q1, while prices rose by just 1.1 per cent quarter-on-quarter.

Across the regions, performance varied. Birmingham’s flex space shrank by 21.2 per cent year-on-year, which corresponded with a 23 per cent rise in desk costs. Meanwhile, Manchester expanded its inventory by 17.7 per cent, leading to a more modest 5.3 per cent increase in prices.

Tom Petryshen, head of growth and Analytics at Rubberdesk, said: “This surge in managed offices supply reflects a dual dynamic. Firstly, tenant demand for customised, private flexible solutions is strong, particularly from larger enterprises navigating economic uncertainty and hybrid work models.

“Secondly, landlords are also actively contributing to this supply increase. Facing reduced demand for traditional 5–10-year leases, property owners are increasingly adopting managed solutions to meet evolving occupier needs and maintain occupancy.”

Highlights:

• UK flexible office space supply up 32 per cent year-on-year in Q1 2025
• London holds 75 per cent of the national flex inventory, with a 39 per cent increase in availability
• Desk prices drop 1.2 per cent QoQ but remain 2.2 per cent higher than last year