Flex workspace: Thriving amidst uncertainty – reflections on Q1 and the year ahead

Despite today’s environment of increasing economic and political volatility, the flex workspace market continues to exhibit resilience and growth. Operators continue to open fresh sites, particularly in prime locations, such as London and pioneer new solutions, while exploring innovative options in new developments and refurbishments. This evolution is not only a response to shifting market dynamics but also an invitation for businesses to rethink how and where they work.

Strong performance amid uncertainty

We have made good progress this quarter across the sites we opened last year. Our flagship amenity-rich facility at 51 Lime Street, in the heart of the City is now fully occupied, well ahead of plan. Similarly, the expansion at 70 Gracechurch Street and our new site on 80 Strand consistently draw new, well known, clients. Regional sites in Leeds and Birmingham continue to perform strongly, hosting a diverse mix of well-known corporations and reinforcing the adaptability of the flex workspace model.

Larger flex spaces and regional growth

Despite the economic uncertainty we continue to see good levels of occupier demand and transaction activity including a continued higher volume of larger and more established businesses coming out of leased space or trading up to higher amenity flex space. This continues to drive an increase in our average client “size” – already greater than the industry average.

There has been a surge in CAT A+/fully fitted landlord space enter the market particularly in London. This has been driven by corporate occupiers seeking quality flex space in central locations without the substantial capital outlay and hassle of setting it up themselves. Major cities such as Manchester, Leeds, and Birmingham have witnessed a similar uptake, especially those under 5,000 sq ft and increasingly in the 5,000 sq ft to 10,000 sq ft categories. Amenity-rich “space and service” offerings are now also spreading to other regional cities.

We are increasingly working with regional landlords to expand our services into other elements of the building – using our core flex centre as a base for broader managed products. For example, we are working in partnership with an existing landlord to co-market and then service 2,500 sq ft + suites. Elsewhere we are expanding existing clients from flexible to conventional or managed space within the same building, not only benefiting our clients but ensuring the landlord retains their tenant. Our partnership arrangements with landlords makes this much more seamless and deliverable.

The importance of top-quality amenities and service

Today’s occupiers expect more than just a functional office space. They seek thoughtfully designed environments equipped with superior amenities, that foster well-being and productivity, together with a focus on hospitality and service. At 51 Lime Street the inclusion of a canteen, Starbucks café, gym and auditorium has transformed the space into a full-service workplace hub. Such quality environments not only attract tenants but also encourage them to stay. Businesses are also increasingly willing to incur higher costs for well-located, amenity-rich spaces that align with their values and operational needs.

Dedicated technological provisions – including robust and secure internet infrastructures – serve as a critical complementary service, especially for larger corporates whose requirements include safety and reliability.

Rising competition and strategic expansion

As the flex workspace market gains momentum, the competitive landscape is also evolving. In addition to well established players, newer, often regional, operators are entering the arena. In response, Orega has accelerated its expansion strategy, launching over ten new sites across the UK over the past two years with a deliberate focus on London and other major hubs.

As prime rents continue to rise in regional cities, operators must be both focused and strategic in sustaining growth in these promising but challenging markets.

Aligning with corporate and social values

Sustainability and well-being have become essential facets of the modern workplace. Contemporary employees value natural light, fresh air, and controllable temperatures and are increasingly making career decisions based on workspace quality. Flex spaces that integrate sustainable design elements and robust communal services are thus more attractive. This trend is prompting businesses, from boardrooms to break areas, to innovate constantly and align physical spaces with broader corporate and social values. The focus on employee engagement, environmental sustainability, and technological innovation is clearly shaping the future landscape of the flex workspace market.

Looking ahead

As we progress through 2025, uncertainties remain, yet the drive for flexibility, productivity, and exceptional service persists. With more businesses reconsidering their usage of office space – from hybrid work trends now moving to greater in-office “visibility”, to expansive managed environments – the flex workspace sector is poised for ongoing growth and innovation.

By remaining mindful of evolving needs and focusing on high-quality amenities, sustainable practices and strategic expansion, flex workspace operators like Orega are leading the charge into a robust and dynamic future.

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