Flexible Offices for Landlords: A Practical Guide to Adopting Flex

This blog is part of a series from NCG's joint panel with Trustek on the 4th of June 2025.

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“It makes a lot of sense for big owners to put money into [flexible spaces]”

Peter McNamara (Union Investment Real Estate GmbH)

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Step 1: Understand Why Flex Matters

Occupier demand for shorter leases, more adaptable layouts, and spaces that can support hybrid work is not just a passing trend. Even large occupiers, who once signed long-term leases without questions, are now seeking flexibility and value over fixed commitments. As Bex Moorhouse (Work Reconstructed) explained, large occupiers don’t have the large pockets of money they used to, “there is a bigger demand on businesses for hybrid and remote working which makes sinking money into real estate a big choice.”

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Step 2: Choose Your Flex Model

There is no single route to flex.

Landlords can:

• Partner with an established operator: This brings hospitality expertise and ready-made systems, but you may have less control over the occupier experience.
• Build your own flex brand: This allows you to shape the culture and standards, but requires investment in skills, marketing, and service.
• Blend flex with traditional leases: Many landlords are integrating flexible space as an amenity, giving tenants the option to scale within the same building. This hybrid approach can maximise occupancy and futureproof your asset.

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Step 3: Shift from Asset Management to Customer Experience

The most successful landlords are moving from a “build it and they will come” mindset to one focused on service and experience. This means:

• Adopting a hospitality mindset, where service and tenant experience are as important as location and fit-out.
• Upskilling teams to deliver on higher expectations, from reception to community management.
• Listening to occupier and acting on feedback, not just during lease negotiations but throughout the tenant journey.

As McNamara put it, “The difference between landlords doing flex and operators doing flex is understanding what your tenant wants to allow them to focus on their business.”

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Step 4: Getting the Financial Model Right

Flex space can deliver higher income per square foot but also brings new financial challenges. Moorhouse noted, “Tight budgets, and restrictions on everybody. Finance models need to be nimble to accommodate everybody.” Consider spreading fit-out costs, offering all-inclusive packages, or managed solutions that appeal to a wider range of tenants.

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Step 5: Avoid Common Pitfalls

• Don’t treat flex as a bolt-on: Flex is not just about lease terms; it’s about a new approach to space and service.
• Don’t ignore your target market: What works in Canary Wharf may not work in the West End. Tailor your offer to your occupiers and location.
• Don’t underestimate the operational shift: Running flex space is different from traditional asset management. Invest in the right people, processes, and technology to deliver a seamless experience.

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Final Thoughts

The rise of flexible workspace is reshaping the office market, but it is not about replacing what already works. It’s about expanding the offer, diversifying income, and meeting the needs of a changing workforce. For landlords, the opportunity is clear, but it takes a shift in mindset, a focus on service, and a willingness to adapt.

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