London’s managed office market has expanded nearly sevenfold since 2020, as companies look for more flexible workplaces without giving up dedicated space or their own branding, according to Coworking Europe.
New research from JLL found that managed office stock grew from 49,050 square meters in 2020 to 334,000 square meters in 2025, an increase of about 582%.
Managed Offices Now Make Up 18% Of London’s Flex Market
Managed offices now represent 18% of London’s flexible workspace market, compared with 74% for serviced offices and 9% for landlord-operated flexible space.
The model typically gives one company a fully fitted, self-contained office with furniture, IT, utilities, cleaning and other costs bundled into one monthly payment. Companies can maintain their own branding and workplace design while avoiding the upfront cost of fitting out a traditional office.
Serviced Office Users Are Moving Into Managed Space
JLL found that 75% of companies taking managed office space over the past 18 months previously occupied serviced offices.
Managed offices have also gained ground in leasing activity. They accounted for 60% of flex deals by floor area completed through JLL’s London business in 2023, rising to 63% in the first half of 2024.
The growth reflects demand from companies that want more space and control than a traditional serviced office provides, while keeping shorter commitments and lower upfront costs than a conventional lease.
Landlords Are Using Managed Offices To Fill Space
Landlords are also turning to managed offices as a way to attract tenants to vacant or refurbished buildings. The model allows them to offer ready-to-use space without requiring occupiers to fund a major fit-out.
The expansion marks a change from London’s earlier flex market, when serviced offices dominated new openings. JLL expects managed offices to remain one of the strongest-growing parts of the market as companies continue balancing dedicated workplaces with greater flexibility.
