Why commerical propety owners should consider launching a flexible workspace

While the opportunity is strong, success depends on making informed decisions. Here are the essential factors every landlord should evaluate.

1. Location & Local Demand

Not every building is suitable for coworking or serviced offices. The most successful spaces share common traits:

Strong locations include:

• Town and city centres, or business parks near larger towns or cities

• Areas with good transport links – motorway links are ideal for business park/flex-industrial type spaces, whilst city centre next to major tram, train or tube links is ideal for serviced office spaces 

• Population : Ideally a population of 20,000+ in the area – unless you are doing a ‘micro-space’

• Locations with limited existing flexible workspace supply that has high occupancy 

• Areas with growing SME or startup communities

Assessing demand

Before investing, landlords should understand:

• Who is the local business audience?

• Are there existing operators nearby?

• What are their occupancy levels and pricing?

• Is there unmet demand for private offices, meeting rooms, or hybrid space?

Using these questions to form a simple market demand assessment can prevent costly mistakes.

2. Building Suitability & Fit‑Out Requirements

Flexible workspace requires a different approach to layout and design compared to traditional offices.

Key building features that help:

• Good natural light

• High ceilings

• Open floorplates

• Multiple small rooms or the ability to create them

• Strong broadband infrastructure

• Accessible entrances and lifts

Fit‑out considerations

A modern flexible workspace typically includes:

• Private offices (2–20 desks)

• Coworking areas 

• Meeting rooms

• Phone booths

• Breakout spaces

• Kitchen and social areas

• Showers, WC and Bike Storage

• High‑speed WiFi

• Access control and CCTV

• Reception or community area

• Parking (not as important in big cities but certinaly key in suburban/business park locals)

Fit‑out costs vary widely depending on building condition, but landlords should budget realistically. A well‑designed space commands higher desk rates and better occupancy. A basic fitout can range from £25/psft up to £140, depending on location and segment (eg out of town affordable office space/flex industrial vs premium city centre London)

3. Operational Model: Operator, Partnership, or Self‑Managed?

Landlords have three main routes into the flexible workspace market:

Option 1: Lease to an operator

• Lowest risk

• Predictable income

• Operator handles everything

• But rental values may be lower than traditional leases

Option 2: Management agreement / revenue share

• Shared risk, shared reward

• Operator runs the space

• Landlord benefits from upside

• Increasingly popular in the UK

Option 3: Self‑operate

• Highest revenue potential

• Full control

• But requires expertise in sales, marketing, operations, and community management

For many landlords, partnering with an experienced operator or a consultant like Your Flex Expert is the most efficient route.

4. Pricing Strategy: Desk Rates & Serviced Office Pricing

Pricing is critical. Overpricing leads to low occupancy; underpricing leaves money on the table.

Factors that influence pricing:

• Location

• Competition

• Quality of fit‑out

• What’s included in the desk rate

• Amenities

• Meeting room availability

• Local business demographics

• Typical revenue streams include:

• Private office licences /Light Indutrial)

• Coworking memberships

• Meeting room bookings

• Day passes

• Virtual office services

• Event space hire

• Parking 

• Premium or bespoke IT Revenue 

• Admin support 

A well‑run workspace can generate significantly higher revenue per sq ft than a traditional lease. Additional revenue (Virtual Offices, Meeting Rooms , Parking etc can add 5-10% onto your revenue in a well occupied location.