The Flex Revolution: How Manchester's Office Market Learned to Put Occupiers First
- Rico Naylor
- Aug 6
- 3 min read
For decades, the office market operated on a simple premise: landlords held the power.
Occupiers, particularly smaller businesses, faced a market of long, inflexible leases in often uninspiring, bland buildings. However, a seismic shift, catalysed by new ways of working and accelerated by a global pandemic, has inverted this dynamic.
According to exclusive insights from CBRE's flex space experts, Jordan Saleh and Ciara Dougray, the rise of flexible workspace has forced the industry to adapt, putting the needs and wants of the occupier front and centre.
The Genesis of the Shift
The flex space movement began as a solution for startups and small companies that were priced out of a market geared towards large corporations.
Jordan notes the real turning point for Manchester was the arrival of WeWork in late 2017. This created a "buzz" that made larger companies take the model seriously for the first time.
While this trend experienced steady growth, a second pivotal moment occurred with the COVID-19 pandemic. The ensuing uncertainty made flexibility the single most crucial factor for businesses.
Companies became acutely aware of the risks of being tied into long-term liabilities, and the flex model, which operates on a license rather than a lease, offered a crucial advantage: no liability. This allows businesses to de-risk their futures in a way that a traditional lease, which presents significant liability, does not.
A New Power Dynamic: "The Winners are the Occupiers"
This demand for flexibility has fundamentally reshaped the market.
As Ciara noted, landlords who previously would only consider five-year leases are now entertaining 12-month or two-year agreements just to get tenants in and reduce their vacancy rates. This change in mindset is a testament to the impact of the flex model.
"The winners are the occupiers," Jordan stated, emphasising that flex space has put significant power back into their hands.
Landlords who once dictated terms are now adapting their own models to resemble those of flex operators, in order to compete. Those who have embraced this shift are reaping the rewards.
Buildings that partner with flex operators, such as No. 1 St Michael's with Gilbanks or 100 Embankment with X+Why, benefit from a vibrant atmosphere and are often fully let even before completion.
In contrast, landlords who are reluctant to adapt run the risk of being left behind.
Manchester's Flex Market: A Snapshot
The growth in Manchester’s flex market has been significant.
The city's flex space market now stands at 1.4 million square feet, representing 8% of the total office market, and is expected to reach 1.5 million square feet by year-end. For comparison, flex space makes up 20% of the office market in London.
Perhaps most surprisingly, the demand is no longer predominantly from the tech and creative sectors.
Today, professional services have taken the top spot, a trend exemplified by operators like Gilbanks, which cater exclusively to professional services firms. This shift indicates that the desire for flexibility, high-quality amenities, and a strong workplace culture has become mainstream.
The Future is Flexible and Hospitable
Looking ahead, the evolution continues.
The interview highlighted the rise of "brandlords", landlords who are creating their own flexible workspace brands. While they may lack the operational experience of established providers, they have the deep pockets to invest in high-end fit-outs and technology.
Ultimately, the key message for landlords and investors is that flexibility extends beyond short-term leases.
As Jordan concluded, to be successful now, "it's really important that we're listening to what the occupiers are saying and delivering on that".
It's about providing a holistic, hospitality-driven experience that can compete with the comforts of home. The office must be a destination that supports collaboration, culture, and well-being.
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