Enter the 'Brandlord': A New Chapter in the Flex Revolution

In our previous article, "The Flex Revolution," we established how the balance of power in the office market has tilted firmly in favour of the occupier.

This shift has forced landlords to adapt to a new world where flexibility is a key factor that tenants demand.

Now, as landlords grapple with this reality, a fascinating new strategy is emerging. Many are moving beyond simply partnering with flex operators to building their own in-house brands. This has given rise to a new player in the market: the "brandlord".

The 'Why': Reclaiming a Piece of the Market

The emergence of the brandlord is a direct response to a changing market. As Jordan Saleh of CBRE explained, landlords have recognised they are "cutting themselves out of a portion of the market by not being as agile as Flex is".

Rather than concede this growing segment to third-party operators, they are choosing to compete directly.

Jordan Saleh - Head of Flex Advisory, CBRE

By creating their own flex offering, landlords can provide a "one-stop shop" within their buildings. This allows them to capture tenants who desire flexibility but might prefer to deal directly with the building owner, blending the security of a major landlord with the agility of a flex model.

It's a strategic move designed to reclaim control and cater to the full spectrum of occupier demand.

The Brandlord's Gambit: Deep Pockets vs. Deep Experience

This new strategy comes with a distinct set of advantages and challenges.

The primary advantage, as pointed out by Jordan, is that these landlords have "deep pockets". They are able to invest significant capital into creating high-end, tech-enabled spaces with premium fit-outs, which can be a major draw for occupiers.

However, the key challenge is their relative lack of experience.

While they own the buildings, they often "don't have the experience and know-how of some of the flex operators that have been doing it for many years", Jordan notes.

This includes the operational complexities of delivering services, understanding pricing for shorter-term leases, and effectively marketing smaller suites to quickly refill space when a tenant moves out. It's a whole new world compared to the traditional leasing model.

The Pioneers: Brandlords in Action

This trend is already visible in Manchester. A key example is Allied London's "Department" brand, with Bonded Warehouse and Bruntwood offering flex space throughout its Manchester Portfolio.

X+Why - 100 Embankment (Manchester)

Furthermore, major institutional investors like L&G and GPE are also noted to be creating their own versions of flex within their asset portfolios. These pioneers are betting that they can leverage their financial strength and existing assets to build successful flex offerings from the ground up.

The rise of the brandlord is perhaps the ultimate testament to the impact of the flex revolution. It signals that the principles of flexibility, high-quality service, and experience-led design are no longer a niche alternative, but a core component of a modern landlord's strategy.

The question is no longer if landlords should engage with the flex market, but how—and for an increasing number, the answer is to do it themselves.