For all the hand-wringing about hollowed-out central business districts in New York and London, a different story is quietly unfolding elsewhere: flexible office space is no longer a niche experiment. In parts of Asia, South Asia in particular, and other emerging markets, managed offices, coworking campuses and landlord-led “flex” offerings are maturing into a mainstream asset class, and reshaping how design and build firms, developers and investors think about commercial real-estate. The result is a growth frontier where the old rules of scale, specification and timing are being rewritten.
Emerging Growth in the UK, and EMEA’s Flex-Space Frontier
In a commercial real estate landscape dominated by headlines about downsized footprints, surging vacancy and the obsolescence of traditional offices, a quieter but more resilient trend is powering forward: the growth of flexible office space, especially across the UK and broader EMEA region. For developers, landlords and design and build practitioners, this is not a niche side-show; it is becoming one of the few genuinely expanding sectors in office real estate.
Flex a cornerstone, not an after-thought.
According to the latest EMEA market update by Colliers (“Flexpansion: The Architecture of Agility”, July 2025) the flexible-office inventory in 46 EMEA markets reached around 8.33 million m 2 in 2024, having grown by 4.4% year on year despite economic headwinds. Of even greater note: the number of open flex units rose to 4,358 (+203 units). The UK (and especially London) remains at the epicentre of this web of growth.
In the UK alone, early 2025 data from the platform Rubberdesk show that flexible-office space availability jumped 32% year on year in Q1 2025 to more than 8.6 million sq ft nationwide; the segment of “managed offices” (self-contained flexible suites) rose a dramatic 11% YoY. At the same time, while desk-rates slipped slightly quarter on quarter (-1.2%) to £500 per desk, they were still up 2.2% year on year.
In London, occupancies remain robust (reported at around 93%) and managed office supply has surged since 2019.
Why Flex is Thriving When Traditional Office isn’t
A confluence of structural and cyclical factors underpin the strength of flex space:
- Hybrid working meets flexibility-seeking occupiers: Companies no longer allocate fixed long-term leases for static teams. For occupiers seeking agility, plug and play space with shorter-term commitments is appealing, and in the UK this is increasingly being met by managed office supply. For example, Rubberdesk notes that larger enterprises are opting for customised, flexible solutions.
- Landlord and operator innovation: Many traditional landlords are launching their own “brand-lord” models, integrating flexible space into their portfolios to maintain occupancy and capture service premium income. In London, for example, the conversation has shifted from “co-working” to “corporate grade flex”/
- Supply restraint in traditional build, growth in conversion capable product: While new office construction in the UK has slumped to be a 10-year low (about 23 million sq ft under construction in Q1 2025), reflecting high debt costs, inflationary build cost and developer caution, flexible space is being added largely through adaptive re-purposed buildings or landlord-led offerings.
- Flight to quality, user experience and amenities: Occupiers are not simply downsizing, they are trading quantity for quality. Flexible spaces emphasise service, design, amenity and experience. According to Colliers: “Occupiers are demanding more control, privacy and service, and flex providers are answering that call with highly tailored, amenity rich solutions that rival traditional offices in quality and brand experience.”
- Regional spread beyond London: While London remains dominant (approximately 75% of UK flex inventory) regional hubs such as Manchester, Leeds, Birmingham and others are showing meaningful activity. For instance, in Manchester, Leeds, Birmingham and others are showing meaningful activity. For instance, in Manchester Q1 2025 saw availability rise 12.1% QoQ and 17.7% YoY along with rate resilience.
Implications for Design and Build Industry Players
The flex-space growth model isn’t just about leasing models, it has clear design, construction and operational implications:
- Modular, repeatable design becomes critical: Flex operators favour suites that can be turned around quickly, re-tenanted smoothly and serviced efficiently. For builders and designers, this means devising “kit of parts” fit-outs, demountable partitions, standardised MEP backbones and flexible amenity modules. Failure to adopt this approach risks long lead-times and margin erosion.
- Experience-centric design at scale: Flex spaces must feel distinct. Higher-end flex isn’t just open desks; it includes meeting-hubs, event zones, branded lounges, tech-enabled conferencing, hospitality style finishes and strong identity. Design and build teams must balance these qualities with operational durability and cost efficiency.
- Lifecycle and operational economics matter: Because flexible space often has shorter lease-cycles and higher churn, wear and tear, re-fit frequency and operational cost become significant. Material specifications, ease of reconfiguration, serviceability and energy efficiency are more than design niceties, they are business-drivers.
- Location and asset quality premium: Data from Colliers show that new flexible space openings are increasingly city centre, high-quality buildings; in 2024, city centre openings rose from 34% to 47% of all flex space in EMEA. Landlords seeking to integrate flex are choosing prime buildings or repositioning historic assets. Design and build teams need to be ready for adaptive reuse projects and premium refurbishment briefs.
- Regional and asset-class bifurcation: While London may be maturing, regional markets and second-tier cities remain under-penetrated. For design and build companies this signals divergent product needs, what works in central London (luxury finishes, high-end amenities) many differ from what regional occupiers demand (cost efficient, hybrid friendly, tech enabled but with leaner specification).
The Cautionary Notes
Even as flex thrives, it’s not immune to risk. Occupancy and leasing momentum remain subject to broader macro-conditions; rising borrowing costs, inflation, corporate hiring freezes and hybrid -work mutability all challenge demand. Indeed, one UK operator, Workspace Group, reported a dip in occupancy to 82.2% in Q1 2025 following large client exits. Moreover, strong supply growth in flex, if unchecked, runs the risk of over-penetration, especially if operators flood smaller cities or lower-quality stock. Colliers notes closures in the EMEA flex market declined by 15% in 2024, but rising competition may depress pricing or accelerate churn.
Outlook, Capturing the Momentum
For stakeholders in the UK and EMEA design and build ecosystem, the flex-space wave presents three strategic imperatives:
- Position for enterprise-scale flex: The market is shifting from start up focused coworking to corporates seeking managed floors or campus style flex. Design and build companies that develop capabilities and portfolios for larger, higher spec flex clients will command premium mandates.
- Focus on integration of tech and operations: Flex offerings must integrate digital booking systems, occupancy analytics, hybrid-work enablement, and amenity services. Building these components into the design and build scope, not leaving them as after thoughts, will give firms a competitive edge.
- Expand regional reach and asset reposition: With core London supply large and competition strong, firms should explore regional markets and adaptive reuse opportunities. Whether converting older office stock into flex-centric product or commissioning new flexible ready shell builds, the regional spread offer growth. As Colliers observed, several Tier 2/Tier 3 cities (e.g., Leeds) are no registering the fastest growth rates.
In a region where many office markets are under pressure, the flexible space segment in the UK and EMEA stands out not just for resilience, but for real momentum. The shift from long term, fixed-asset leasing to short term, service oriented, experience driven space is more than just a trend, it’s a structural transformation in how work and workplaces are defined. For the design and build industry, the message is clear; adapt your service, construction and operational model now, because the flex frontier is no longer emergent, it is present.
Data & sources (selected).
Economic Times, “Flex spaces power India’s office market with 65% YoY surge”, Q2 2025 leasing data. The Economic Times.
JLL, Global Real Estate Outlook 2025 (flex-space adoption and landlord strategies). JLL