Higher-end flexible workspace in London is bringing in far more revenue than traditional office space, with top-tier products reaching more than 200% of standard rents in some areas, according to BisNow.
Performance was strongest in central business districts. In Canary Wharf, premium flexible offices exceeded 230% of market rents at their peak, while the City approached 200% before easing later in the year. Midtown and Southbank also saw strong results early on, though both cooled in the second half.
The West End held the highest rates overall across the year, while Stratford remained well behind, with returns at just 35% to 45% of market rents.
Quality Matters More Than Ever
The gap between high-end and lower-end space is growing. Premium and mid-tier flexible offices continue to outperform traditional leases, while lower-grade space shows more volatility and, in some cases, underperforms standard office rents.
Flex Space Keeps Expanding
Demand for flexible offices continues to grow. Projections show the sector could reach 20% of London’s total office stock by 2030, up from about 12% today, as more landlords enter the market to meet demand.
Strong Returns, Uneven Market
Flexible workspace is proving it can generate higher returns than traditional offices—but only at the top end. Well-located, high-quality space is attracting higher prices, while weaker assets are falling behind.
