Coworking and flexible workspace operators leased more than 2 million sq ft of UK office space in the first quarter of 2026, making the sector the second most active source of demand behind technology companies. The figures from Savills represent a 35 per cent increase on Q1 2025 and mark the strongest quarter for flexible workspace take-up since before the pandemic.
The expansion is being led by a mix of established operators — including IWG, WeWork and TOG — and a new generation of boutique providers targeting specific sectors or demographics. In London, operators focused on the creative industries and technology sector have been particularly active, while in regional cities, demand has been driven by corporate occupiers seeking flexible terms.
The resurgence reflects a structural shift in how companies procure office space. Many occupiers, particularly those with between 50 and 500 employees, now prefer the flexibility of managed workspace over traditional leases, citing the ability to scale up or down quickly and the reduced capital expenditure required.
For landlords, the growing flex sector presents both opportunity and competition. Forward-thinking building owners are increasingly incorporating flexible space into their own offerings, either through partnerships with operators or by developing proprietary managed workspace brands. The proportion of UK office stock operated as flexible workspace has risen to 6.2 per cent, up from 4.1 per cent in 2020.
