London, UK – April 15, 2026 – HEWN, a pioneering firm in the flexible workspace sector, today announced the launch of the UK’s first comprehensive regional flexible workspace index. This groundbreaking initiative extends beyond the capital, offering a data-driven perspective on the performance of flexible workspaces across the UK’s six major cities: Birmingham, Bristol, Edinburgh, Glasgow, Leeds, and Manchester. The HEWN Flexible Workspace Returns Index aims to provide a consistent and reliable benchmark, allowing for direct comparison of flexible workspace performance against traditional office market rents. This launch follows HEWN’s successful introduction of two similar indices focused on the London market.
The development of this index represents a significant step forward in understanding the dynamic and rapidly evolving flexible workspace landscape outside of London. For years, the narrative surrounding flexible workspaces has often been dominated by trends and data from the capital. However, HEWN’s initiative aims to correct this imbalance by illuminating the performance and potential of these spaces in key regional hubs. The index is built upon robust data, meticulously gathered through partnerships with leading industry players such as Office Ready Tech, Valve, OBI Property, and Morton Property Consultants. It scrutinizes critical metrics including desk rates, operational costs, and prevailing market rents to offer a true reflection of returns across various flexible workspace product tiers.
Will Kinnear, founder of HEWN, emphasized the critical need for such a resource, stating, "Flex is not a London story. Having worked in this sector for over two decades, I know how strong these regional markets are. However, what has been missing is the data to properly understand them. This index addresses that." Kinnear’s assertion highlights a long-standing gap in the market for granular, verifiable data on regional flexible workspace performance. The index’s findings paint an overwhelmingly positive picture, indicating that flexible workspaces are consistently outperforming traditional office market rents across the Big Six cities. This superior performance is attributed to a confluence of factors, including the pervasive adoption of hybrid working models and a growing tenant preference for high-quality, service-oriented environments.
"The overall picture that emerges is, unsurprisingly, a positive one," Kinnear continued. "Flexible workspace outperforms traditional market rents across the Big Six cities, with demand driven by hybrid working and an increasing preference for high-quality, service-led environments. There are some real surprises; each of the Big Six is growing in its own way, and together they represent the next phase of growth for the sector, adapting for their regional market." This sentiment underscores the diverse and unique growth trajectories of each city, suggesting a nuanced understanding is required to fully leverage the potential of flexible workspaces in different regional contexts.
A Sector Underrepresented, Yet Outperforming
Despite the burgeoning demand and strong performance, the HEWN report reveals that flexible workspace offerings remain significantly underrepresented in the office stock of the Big Six cities. In key markets like Birmingham and Manchester, flexible spaces constitute as little as 4-6% of the total office inventory. This disparity between supply and demand suggests a substantial opportunity for growth and investment in these regions.
The report meticulously details the performance across different flexible workspace tiers, providing a granular view of their competitiveness against traditional office rents:
- 5-Star Premium Spaces: Consistently outperform prime headline rents across all six cities over the past five years. These premium offerings, characterized by high-quality design, extensive amenities, and premium service levels, have demonstrated exceptional resilience and profitability.
- 3-Star Mid-Tier Spaces: Also exhibit strong resilience, frequently exceeding traditional rental benchmarks. These spaces, offering a balance of quality and affordability, are proving to be a popular choice for a wide range of businesses.
- 1-Star Value-Oriented Spaces: While showing more volatility, these lower-tier flexible spaces still manage to compete effectively with headline rents across all cities. This indicates a market demand for flexible solutions at various price points.
The data suggests that the flexible workspace sector, despite its current underrepresentation, is poised for significant expansion, driven by evolving work patterns and a clear occupier preference for adaptable, amenity-rich environments. The continued demand for flexibility, amplified by the ongoing shift towards hybrid and remote working, is a fundamental driver underpinning the sector’s robust performance.
Regional Dynamics: A City-by-City Analysis
The HEWN Flexible Workspace Returns Index delves into the specific performance of flexible workspaces in each of the Big Six cities, uncovering unique trends and opportunities:
Birmingham: A Hub of Emerging Opportunity
Birmingham’s flexible workspace market, particularly its 5-star and 3-star segments, has experienced notable fluctuations in gross and net returns. Despite this volatility, these segments have consistently exceeded headline rents by as much as 188% over the last five years.
Will Kinnear highlighted the city’s burgeoning appeal: "Flexible operators are circling around Birmingham. There is huge demand from businesses for flex, from the tech start-up scene pioneered by the universities and growing industries in the city, to London-based businesses looking to provide space closer to home, among others. There’s a real buzz, with some flex operations achieving record returns as businesses opt for quality operational real estate. I suspect over the next decade we’ll see space more than double." This optimistic outlook is supported by Birmingham’s strong economic growth, its status as a burgeoning tech and innovation hub, and its appeal to businesses seeking to decentralize operations from London.
Bristol: Strong Foundations Facing Market Shifts
Historically, Bristol has delivered consistently strong performance in its flexible workspace sector. Its 5-star and 3-star offerings have exceeded market rents by substantial margins, reaching up to 215% and 238% respectively. However, in the last two years, both segments have faced challenges in maintaining their premium over headline rents. This narrowing gap is attributed to a significant increase in traditional office market rents, particularly since 2023, which has compressed the differential.
"Bristol is buzzing," commented Kinnear. "There is a great deal of regeneration happening around the station and city centre, with prime headline rents and grade B rents rising significantly. Flexible workspace desk rates and returns have not yet reacted to this, so has skewed data over the last 24 months. However, despite this, returns over the last 5 years are still positive with returns reaching levels of over 230%. Demand for flex remains strong, with supply of quality product not keeping up." The city’s vibrant economy, coupled with ongoing urban regeneration projects, continues to fuel demand for flexible office solutions, even as traditional rents rise.
Edinburgh: Premium Performance and Market Nuances
Edinburgh’s flexible workspace market presents a picture of distinct performance across its tiers. While the 3-star net returns dipped below market rents for the first time in 2025, having remained above since 2021, its 5-star product has showcased exceptional strength. This premium segment achieved peaks exceeding 400% of market rents and consistently delivered returns well over 200% throughout the five-year period. This divergence highlights the strong market appetite for high-end, premium flexible office spaces in the Scottish capital.
Glasgow: Momentum and Premium Appeal
In Glasgow, the 5-star flexible workspace segment has demonstrated robust performance, outperforming prime headline rents by up to 280%. The 3-star segment, mirroring trends observed in Leeds and Bristol, has experienced fluctuations above and below market levels.
Kinnear noted the broader Scottish context: "Scotland has always had a strong flexible workspace story. What we’re now seeing is that strength backed up by data. Edinburgh continues to deliver some of the highest returns outside London, while Glasgow is showing real momentum, particularly at the premium end of the market." This suggests a thriving flexible workspace ecosystem across Scotland, with distinct strengths in its major urban centers.
Leeds: Navigating Volatility Amidst Urban Transformation
Leeds has emerged as one of the more volatile markets analyzed in the index. After reaching impressive returns of up to 160% in 2022, performance saw considerable fluctuation over the subsequent two years. The 5-star product has, however, sustained performance above traditional rent levels for the past year. The 3-star segment, which had enjoyed a period of stability above market rents since early 2023, experienced a decline below these levels towards the end of the previous year.
"The story remains strong in Leeds, but its growth is being tempered by wider regeneration, which is reshaping supply and market dynamics," added Kinnear. Leeds’ ongoing urban regeneration initiatives are undoubtedly influencing its commercial real estate landscape, creating both challenges and opportunities for the flexible workspace sector.
Manchester: Consistent Strength and Reliability
Manchester stands out for its consistent performance across all flexible workspace product tiers. The 5-star segment saw its peak returns at 210% in 2023 and has maintained levels above 110% since 2021. The 3-star segment has exhibited remarkable stability, staying within a range of 110% to 155% of headline rents. This consistent and reliable performance positions Manchester as a particularly attractive market for investors and operators seeking predictable returns.
Kinnear further elaborated on Manchester’s appeal: "Manchester is buzzing and vibrant, and we’re seeing that translate in the flexible workspace sector, with strong demand and undersupply, particularly at the premium end – many operators are chomping at the bit to move in." The city’s robust economic growth, burgeoning business ecosystem, and undersupply of premium flexible space are key drivers of this sustained performance.
A New Benchmark for Investment and Operations
The HEWN Flexible Workspace Returns Index serves as a crucial tool for landlords, investors, and operators navigating the evolving office market. By providing a clear, data-backed comparison between traditional rental income and flexible workspace returns, the index offers a practical framework for informed decision-making.
The report’s findings underscore the fundamental strength and long-term viability of the flexible workspace sector. As businesses continue to prioritize agility, employee well-being, and cost-efficiency, flexible workspaces are solidifying their position as an indispensable component of the modern office ecosystem. The data presented by HEWN offers a compelling case for increased investment and strategic development in regional flexible workspace markets, signaling a new era of growth and opportunity beyond the traditional confines of London.
For further insights and to access the full report, interested parties can visit www.hewnspace.com or the dedicated report page at https://hewnspace.com/the-big-six-hewn-flexible-workspace-returns-index.
