COMMENT Technology has changed everything. Companies of all sizes are now operating in a hybrid working model for the long term. This empowers teams to work more flexibly and offers them the ability to work across different tech-enabled locations seamlessly.
The flex market was already proliferating before the Covid-19 pandemic and it is now growing even more rapidly to meet the demand for more flexible working solutions. Various forms of office space are on the market, from a single desk in a shared office to a collection of desks and meeting spaces, even a whole floor or complete building fitted-out and ready to move into.
Big and small
Where flexible workspace was once synonymous with start-ups and SMEs, its evolution has seen increased demand from larger corporate occupiers and it’s an outdated view (or myth even) that these flexible workspaces are just for smaller entrepreneurial businesses.
This shift towards catering to larger organisations has grown in tandem with the growth of managed space, meaning flexible offices provided to companies and managed by a third-party operator (without associated branding).
Currently, managed offices account for around 10% of all flex space, but we are predicting that this proportion could grow to as much as 30%. The benefits to occupiers are clear – limited fit out costs and the ability to move into spaces quickly. As larger companies increasingly use flex workspace to meet their fluctuating requirements, it will continue to fuel the growth of managed space, the fastest-growing flex segment.
Evidence of larger businesses taking flex workspace can be found in our latest research, which showed that the size of the space businesses are taking has increased over the last five years. Between 2019 and 2024 the size of office space being sought by businesses has grown by 22% on average, reflective of the trend of larger corporates taking managed or flexible workspace. In the cities of Manchester, London and Liverpool, the transaction size has increased by 58%, 41% and 30%, respectively.
Agility and adaptability
The past five years have seen a shift from the “office is over” to more flexible hybrid work practices that encourage a mix of in-office and at-home work. While return to office mandates have hit the headlines, the reality in the UK is more nuanced, with these mandates often stipulating two, three or four days in offices each week.
A new study by academics at King’s College London found that the UK is the number one country for working from home in the Europe, with 1.8 days on average being spent home based verses 1.3 days on average globally.
Given this, corporate occupiers are still assessing their workplace needs and managed spaces provide a practical solution to manage costs and space requirements more flexibly and more efficiently. Companies are also increasingly giving their employees memberships to a network of spaces. No matter where work happens, flexible workspace is now at the heart of workplace strategy, with businesses leveraging agility and adaptability to meet changing workforce needs.
As businesses refine their real estate strategies, the future of flex is set for rapid expansion. Instant’s research reveals that 60% of UK landlords expect more than 30% of their portfolio to offer flex products by 2030 and 80% of existing flex operators plan to expand by 2026.
Lucinda Pullinger is managing director at he Instant Group
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