Managed office space in London increased by 582% from 2020 to 2025, according to new research produced by JLL in partnership with Kitt.
The ‘From Void to Value: Managed Offices Transforming London Offices’ report found the expansion of managed office providers during the five-year period, significantly outpaced the growth of landlord-operated flex space (223%) and traditional serviced offices (20%).
Almost two thirds (64%) of landlords questioned for the report cited reducing void periods as a major reason for adopting managed office solutions. The report also found London now has around 20m sq ft of flexible workspace, representing approximately 8.1% of the capital’s office stock.
Charles Fraser, head of flex at JLL, said: “Businesses have had to navigate an unprecedented period of uncertainty while dealing with rising costs across the board. As a result, occupiers are increasingly prioritising flexibility, looking for shorter lease commitments and ways to reduce upfront capital expenditure. That’s driving strong demand for fully fitted managed and serviced office space. The market has fundamentally shifted, and the flex sector is only going to become a bigger part of the office market in the years ahead.”
Steve Coulson, founder and CEO of Kitt, added: “The London office market is no longer in a state of ‘recovery’ – it has fundamentally changed. Managed offices have moved beyond being a niche flexible product to become a mainstream investment strategy, helping landlords reduce voids, accelerate leasing and unlock more value from existing assets. The data shows this isn’t a passing trend; it’s a structural shift in how office space is owned, operated and occupied.”
