Flex Hits Mainstream: 81% of Office Landlords, Advisers and Asset Managers plan further expansion in flex space in next 1-3 years.
Flexible workspace has moved decisively into the mainstream, with more than four out of five UK office landlords, asset managers and investors canvassed saying they plan to increase their exposure to the sector within the next three years, according to new independent research commissioned by flexible workspace provider Orega.
The report: “Attitudes of Landlords, Advisers and Property Asset Managers to Flex Space 2026”: reveals a sector that is reaching maturity - no longer a tactical add-on or lease solution, but a core component of office portfolio strategy. The debate is no longer whether flex belongs in office portfolios: it is now how to take it forward, run it in the best way, mitigate any operational risks and make it institutionally accepted.
Flex space has already become deeply embedded across UK office portfolios. Across the 500 respondents surveyed, a third (33%) said they had up to 50% of their total office space held as flex space, with just under a quarter (23.4%) saying flex represented between 25% and 50% of the total office space across their office portfolios. This represents a decisive shift from historic perceptions of flex as secondary to traditional office leasing.
Momentum behind growth in the sector is even stronger – with over 81% (81.3%) of respondents saying they plan to increase exposure to flex in the next 1–3 years, with 28% saying they will increase significantly. Less than 3% (2.9%) expect to reduce it and no respondents said they plan to exit flex entirely.
This growth appetite is strongest in core city markets, with 84% of respondents in London and 83% in Manchester saying they are targeting expansion.
Mid-to-large portfolio owners are also leading this move, alongside younger decision-makers. Among those with office portfolios of 1.1m to 5 million sq. ft, 42.4% say they will increase their flex operations significantly (compared to 28% overall), highlighting a structural shift in how such office assets are considered.
The top three drivers for incorporating flex into an office portfolio appear to be attracting and retaining occupiers (39%), improving occupier experience across the whole building (38%) and increasing occupancy and revenue potential (35%).
The rationale for flex has evolved. Landlords and asset managers are no longer viewing using flex purely as a way to fill empty space, but as a strategic tool to enhance their overall office asset performance and improve the occupier experience. Owners and advisers are seeing the benefits of adding flex to their overall property offer, creating a more diverse and dynamic building environment which all occupiers in the building can benefit from.
As flex becomes more central for creating differentiated, service-led office environments that appeal to modern occupiers, landlords and office owners are increasingly expected to provide flexible options that all their tenants can benefit from- or risk losing potential opportunities.
Landlords and their advisers are also clear on why they think occupiers are choosing to be in flex space, with (32%) of respondents citing the ability for businesses to scale space up or down as needed, the access to locations otherwise unaffordable (27%) and the attraction of simple, all-inclusive cost structures (26%).
Notably, flex is increasingly seen less as a hybrid working solution and more as a core business enabler.
Looking ahead, 36% of respondents cite economic uncertainty as the single biggest driver of flex growth over the next five years. This is resulting in businesses actively moving away from long-term lease commitments, prioritising flexibility in terms of tenure, a reduced operational burden and access to high-quality space, tech and amenities (35%). Businesses also are becoming attracted to being able to work with an operator that can enable them to access multiple satellite locations (34%) and access to central locations they could otherwise not afford (33%).
For landlords, flex is also becoming a critical hedge against evolving market trends.
However, despite strong demand, delivery still remains a challenge for property owners and asset managers. Key concerns include demand uncertainty in a period of economic uncertainty (27%), perceived cost premium versus traditional leases (27%) and operational complexity and the lack of in-house expertise to manage it (24%). 21% also mentioned valuation uncertainty.
These findings underline that flex is a fundamentally different operational model to traditional office leasing—requiring specialist capabilities- not only to source occupiers or clients but to keep abreast of changing demands and needs in a faster moving and service orientated environment.
To help support adopting or expanding their flex strategy, landlords, advisers and asset managers are calling for advanced technology tools for managing flex (33%), proof of concept and operation success stories (33%), stronger operator partnerships (32%) and clearer financial and ROI frameworks (31%).
Technology—particularly the potential role of AI—is expected to play a growing role in improving operational efficiency and performance.
We asked as to the preferred operational model: 39% of all respondents said they favour joint ventures or partnering with management agreements with specialist operators, 33% prefer in-house operations and 23% support lease-based third-party arrangements.
Owners and asset managers particularly appear to appreciate the specialist skills operators have in making everything run smoothly- from running WIFI and AV meeting rooms, providing good amenities, looking after the business clients and increasingly contributing to the wider appeal of the building itself.
However, there are some concerns. The biggest concerns around operator partnerships are reputational risk (41%), lack of performance transparency (33%) legal and structural complexity of the management agreement (33%) and possible poor performance (33%).
The message from the market is clear: operators must demonstrate credibility, transparency and alignment with landlord objectives if they are to be worked with; particularly if they are to gain institutional support. Trust in the operating partner is essential.
Commenting on the findings of the survey, Alan Pepper CEO of Orega said:
“This independent research confirms what we are seeing on the ground—flex is not an optional extra, it is a core part of how office buildings are positioned and operated. Landlords and asset managers are recognising that occupiers want flexibility, operational simplicity and a high-quality experience, and flex delivers on all three.
What is particularly striking is the shift from flex being a space-filling solution to a long-term occupier retention and asset enhancement strategy. In today’s market, if you’re not offering flexibility, you could be at a competitive disadvantage.
Such findings point to a fundamental shift in the UK office sector. Flex is no longer cyclical or opportunistic—it has matured and is a structural part of the market. It is reshaping how landlords compete, how buildings are operated, and how occupiers engage with workspace.
However, our survey indicates that as flex develops, its operational complexity remains significant. That is why we are seeing growing demand for experienced and trusted professional operating partners who can deliver not just occupancy, but service, technology and long-term value. The opportunity is significant—but execution will be key, particularly if flex is to be institutionally accepted.”