Managed Office Space in London Surges More Than 580% in Five Years And Counts For 18% Of The Flex Offering

London’s managed office market has expanded by more than 580% over the past five years, making it the fastest-growing segment of the capital’s flexible workspace industry, according to new research from JLL. The property consultancy says the total stock of managed office space increased from 49,050 sqm in 2020 to 334,000 sqm in 2025, highlighting a rapid shift in how landlords and occupiers are approaching office space.

The increase represents growth of approximately 582%, or nearly seven times the amount of managed office space available five years earlier. While serviced offices remain the largest segment of London’s flex market, managed offices have become the fastest-growing product as occupiers seek greater flexibility without sacrificing a dedicated, branded workplace. According to figures shared by Elaine Rossall, Head of UK Offices Research at JLL, who spoke with Coworking Europe, managed offices now account for 18% of London’s flex office market, compared with 74% for serviced offices and 9% for landlord-operated flexible space.

These findings confirm the same trend happening nowadays in Paris, and which will be discussed in deep at the upcoming Coworking Europe 2026 conference in Paris (Nov 5-6), where JLL will also hold a session.

JLL defines managed office space as fully fitted, self-contained offices that include rent, business rates, service charges, furniture, IT, cleaning and utilities within a single monthly fee. Unlike conventional serviced offices, managed offices are typically designed exclusively for a single occupier, allowing companies to retain their own branding, layout and identity while benefiting from shorter commitments and outsourced workplace management.

The consultancy attributes the sector’s expansion to several structural changes in the office market. Hybrid working has increased demand for greater real estate flexibility, while many companies remain reluctant to commit capital to office fit-outs or long-term leases. At the same time, landlords are increasingly using managed office products to attract occupiers to vacant or newly refurbished buildings, enabling them to offer turnkey workspace without requiring tenants to make significant upfront investments.

JLL’s analysis also suggests that managed offices are increasingly attracting occupiers graduating from traditional serviced office products. According to the firm’s transaction data, 75% of clients taking managed office space during the previous 18 months had previously occupied serviced offices, reflecting growing demand from businesses that require larger, bespoke premises while retaining operational flexibility. Conventional corporate occupiers are also increasingly adopting managed space as part of wider portfolio strategies aimed at reducing capital expenditure and maintaining agility.

The shift is also evident in leasing activity. JLL reports that managed offices overtook serviced offices within its own London flex leasing business in 2023. Managed transactions represented 60% of completed flex deals by floor area in 2023, rising further to 63% during the first half of 2024, a trend the consultancy expects to continue as occupiers combine conventional leases with flexible workplace solutions.

Historical data compiled by JLL illustrates how rapidly the market has evolved. During the period between 2016 and 2020, serviced offices dominated new flexible workspace openings in Central London, while managed offices represented only a relatively small share of newly delivered space. Between 2021 and 2025, however, the volume of newly opened managed office space increased sharply, approaching the level of newly opened serviced office space and reflecting a fundamental broadening of London’s flexible office market.

For landlords, JLL argues that managed offices provide a way to increase occupancy, widen the potential tenant pool and generate additional value from office assets. For occupiers, the model offers a fully branded headquarters without the capital costs, operational complexity and long-term commitments associated with conventional office leasing. As companies continue to seek flexibility while encouraging employees back to the workplace, JLL expects managed office solutions to remain one of the strongest growth areas within London’s office market.