The flexible workspace market continues to evolve at a rapid pace, particularly across the UK’s Big Six regional cities: Birmingham, Bristol, Edinburgh, Glasgow, Leeds, and Manchester. While traditional providers have slowed their leasing activity, high-end operators like us (Cubo) have redefined the landscape, and we are rapidly emerging as market leaders in this competitive sector.
Recent data from CoStar Analytics (the link to their article can be found at the bottom of this blog) highlights Cubo’s extraordinary impact. Over the past two years, we have accounted for a remarkable one-third of all flexible workspace leasing activity across these major cities. This achievement positions us ahead of established players like IWG (the parent company of Spaces and Regus) and Orega, which have seen their share of the market decline from the “boom years” prior to the pandemic.
High-End Spaces Driving Demand
One of the key trends shaping the flex market is the growing preference for high-quality, well-located spaces. Occupiers are increasingly prioritising premium office environments, even if it means paying a premium. We have strategically aligned our offerings with these demands, focusing on delivering exceptional workspaces in prime locations.
For example, in 2023, we leased of two floors at The Lincoln in Manchester which acted as a significant catalyst for other occupiers to follow suit, sparking a wave of activity. Similarly, our addition of a floor at Aurora in Glasgow—a landmark sustainable office development—showcases its commitment to aligning with the market’s evolving priorities, including sustainability and innovative design.
Expanding Market Presence
Our expansion is not limited to individual deals; it’s part of a broader strategic growth plan. In Leeds, one of the most active cities for flexible workspace, we took additional space at 6 Wellington Place, and remarkably, the space reached 100% occupancy within just 12 months—a testament to the demand for our unique offering.
This success across cities reinforces our position as a disruptor in the market, challenging the dominance of older brands while setting new standards for what flexible workspaces can offer.
A Resilient and Growing Market
Despite a slowdown in overall leasing activity compared to pre-pandemic years, the flexible workspace sector is steadily growing its market share across the big six regional cities. With leasing activity in 2024 steady at around 280,000 square feet—similar to the previous two years—operators like us are driving this growth by meeting the market’s demand for premium, adaptable spaces.
The Future of Flexible Workspaces
Cubo’s rise to prominence is not only a reflection of our ability to deliver exceptional workspaces but also our adaptability to market trends. By combining premium fit-outs, sustainable practices, and strategic location choices, we are shaping the future of the flex market.
As occupiers continue to prioritise quality, innovation, and flexibility, our trajectory as a market leader is set to continue. With our relentless commitment to providing unparalleled work environments, Cubo is not just meeting the needs of today’s workforce—it’s redefining the future of work, like our registered trademark reads – Cubo is ‘More than work’.
(Source: A CoStar article written by By Giles Tebbitts on the 22 January 2025 https://www.costar.com/article/504934558/new-entrants-grow-flex-market-share-in-the-regions)
