Dr. Gleb Tsipursky – The Office Whisperer
Nirit Cohen – WorkFutures
Angela Howard – Culture Expert
Drew Jones – Design & Innovation
Jonathan Price – CRE & Flex Expert
Mark Twain once quipped that the reports of his death were greatly exaggerated. Funny enough, the same could be said for that of the office. Covid ushered in fears that people would never return to workplaces, but that hasn’t been borne out. Mandated returns, hybrid options and evolved workspaces have all contributed to offices being widely utilised five years on. But one question remains: what about the death of the office lease?
There was a time when occupiers were offered only two choices for their offices: lease or buy. Both options tied up capital, came with long lead times, and involved complex legal overheads. Most importantly, they locked businesses into long-term commitments, restricting modern growth.
But the conversation has most certainly moved on.
The Rise of Flexibility
The emergence of serviced offices and coworking spaces marked a turning point for the industry. These models gave SMEs access to prestigious addresses, professional services, and shared amenities, and all without the burdens of traditional leases. Businesses could book meeting rooms and boardrooms on a pay-as-you-go basis, rather than paying for space while it’s empty. Twelve-month terms, two-month deposits, and the ability to scale up or down became the new norm.
Enter the Managed Office
Today, the biggest trend reshaping the UK commercial office landscape is the Managed Office. According to the Rubberdesk Q1 UK report, Managed office space availability grew 111% year-on-year (YoY) and 10.6% quarter-on-quarter (QoQ), outpacing serviced office space growth of 6.1% over the last quarter.
Managed offices sit somewhere between serviced spaces and traditional leases, offering a hybrid model that’s flexible. Tenants can cherry-pick features they want, allowing them to balance service with cost.
These are plug-and-play solutions. Things such as the internet, furniture, and essential amenities are all included. A dedicated provider handles building management, maintenance, and operations, freeing businesses to focus on what they do best. Fitouts can be amortised over the term, reducing upfront CapEx. Branding is bespoke and terms are flexible.
The Goldilocks Solution
Managed offices offer the service wrapper of serviced offices with the stability and customisation of leases. It makes them ideal for scaling businesses who want to avoid carrying excess space for future staffing projections.
This service-first approach wraps amenities, branding, and support around the space to create a highly personalised office experience.
So Where Have These Managed Offices Been Hiding?
The sharp rise in managed office supply in the UK is being fuelled by a clear shift in both occupier expectations and landlord strategies. On the occupier side, we’re seeing sustained demand, particularly from larger enterprises, for flexible, private, and fully serviced spaces that can adapt for hybrid work and provide the agility that businesses demand. These businesses are looking for more than just square footage; they want agile, experience-led environments, and operational simplicity.
At the same time, landlords are responding to these changing dynamics with increasing urgency. With demand for traditional 5 to 10-year leases softening, many property owners are rethinking their approach and embracing managed solutions to remain competitive. It is not just about filling space; it is about aligning with how businesses want to work today. This dual momentum is reshaping the market and accelerating the evolution of office space across the UK.
A Shift in Demand
Net new tenants are entering flexible workspaces — businesses moving from traditional leases into flexible models. Our Q1 UK data showed a 32% year-on-year increase in available flexible office space, now exceeding 8.6 million sq ft.
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The lease still works well for firms with long-term certainty. But for many businesses, flex, and specifically managed offices, are a better fit. Offering surge capacity and allowing businesses to scale up and down far more efficiently.
Landlords Are Catching On
More landlords in the UK are recognising the potential of managed offices. They see a solution that solves their vacancy problem and meets modern tenant needs. Reassuringly for landlords, despite the surge in supply of new stock, desk rates across both managed and serviced offices have trended upward over the past two years (national rate is up 2.2% year-on-year).
Commercial office space is no longer just about square footage. It’s about the services and amenities wrapped around it. Just as hotel chains add value through brand and service, landlords are now doing the same by partnering with managed and serviced office providers to elevate the tenant experience.
So, is the office lease dead? Certainly not. But neither is it the only option for serious businesses of all sizes. Long-term leases are giving way to more agile, service-oriented, balance sheet friendly models that reflect how businesses need to operate to be successful. As long as landlords remain open to respond to tenant demand, we expect this transformation to accelerate.
