Flexible Office Space Market: The Cork on the Tide Analogy

 

A wise industry colleague once told me the flexible office space market is like “a cork floating on a tide of demand.”

In other words, while coworking operators and serviced office brokers like to believe they can steer the market, the truth is that much of what happens is driven by wider demand cycles. We can reposition, reprice, and market until the budget runs dry. But the tide will do what the tide will do.

Cosmetic Occupancy in Action

 

Take Birmingham as a recent example. CBRE reported that flex office occupancy in the city centre hit a record 84%, the highest since 2020. At face value, this looks like a boom. But dig into the detail and you’ll find it’s less about surging demand and more about reduced supply. With large sites such as 1 Victoria Square and Two Snowhill leaving the market, the total pool of desks shrank, giving the appearance of a fully booked city.

This is what we call cosmetic occupancy: a statistical high-water mark in the flexible office space market created as much by absence of space as presence of demand.

Smaller Spaces, Stable Demand

 

The latest CBRE UK Flex Market Update notes a shift toward smaller, sub-10 desk offices across both London and the UK’s regional cities. In Mayfair, City of London, London Bridge, Soho, Holborn, and Victoria, the pattern is the same:

• Demand softens over time.

• New spaces open smaller, matching current requirements.

• Those spaces fill quickly.

• Prices creep upward.

Then, buoyed by the apparent success, larger spaces launch and the cycle begins again.

For more on how demand shifts influence space configuration, see our post on broker influence and market behaviour.

Flex Market Rhythm: The Fill-Up, Price-Up Cycle

 

This repeating rhythm: low take-up, smaller supply, fill-up, price-up, expansion, is less about market mastery and more about the tide moving our corks. It’s predictable, observable, and almost inevitable.

For landlords entering the flexible office space market and for brokers competing for lead flow, the danger lies in mistaking this natural balancing act for a clever strategic win.

Reading Between the Lines of Market Reports

 

Here’s what recent reports actually tell us when we filter out the headline gloss:

• CBRE H1 2025 UK Flex Market Update: Pricing resilience in premium locations, with landlords launching their own flexible workspace brands.

• CBRE 2024 UK Flex Market Update: Strong trend toward smaller, high-quality coworking and serviced offices, especially outside London.

• Mid-Year Real Estate Outlook: Demand for premium space remains strong where supply is constrained, but overall take-up is still below historical averages.

Why This Matters for Flex Engine Users

 

At Flex Engine, we believe that finding the right flexible office broker is less about chasing the loudest “record occupancy” claims and more about finding someone who understands where we are in the cycle and can position you on the right part of the tide.

We track these market shifts closely so that when you’re looking for coworking in London or serviced offices in London — whether in Mayfair, City of London, Holborn, Soho, London Bridge, or Victoria you can make decisions based on the market’s reality, not just its marketing.