HEWN Flexible Workspace Returns Index launches across the UK’s big six cities

Specialist flexible workspace consultancy, HEWN, has launched the UK’s first comprehensive regional flexible workspace index, expanding beyond London to provide a clear, data-led view of performance across the UK’s Big Six cities – Birmingham, Bristol, Edinburgh, Glasgow, Leeds and Manchester.

The HEWN Flexible Workspace Returns Index provides, for the first time, a consistent benchmark comparing flexible workspace performance directly against traditional office market rents – having previously launched two London indexes.

Drawing on data from leading partners including Office Ready Tech, Valve, OBI Property and Morton Property Consultants, the index considers desk rates, operational costs and market rents to provide a true reflection of returns across different product tiers.

Will Kinnear, Founder of HEWN said: “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. The overall picture that emerges unsurprisingly a positive one. 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.” 

The report highlights that flexible workspace remains significantly underrepresented across the Big Six, with as little as four to six per cent of office stock allocated to flex in key markets such as Birmingham and Manchester.

Despite this, demand continues to grow, driven by hybrid working trends and increasing occupier preference for high-quality, service-led environments.

At the premium end, performance remains particularly strong:

• 5* flexible workspace consistently outperforms prime headline rents across all cities over the last five years
• 3* products also demonstrate resilience, frequently exceeding traditional rental benchmarks
• Lower-tier (1*) space shows more volatility yet competes with headline rents across all cities

Regional key findings from index:

• Birmingham

Birmingham’s 5* and 3* market experienced the greatest gross and net returns fluctuations but still exceeded headline rents by up to 188 per cent over the last five years.

“Flexible operators are circling around Birmingham,” says Kinnear. “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.” 

• Bristol

Bristol historically delivered strong performance, with 5* and 3* products exceeding market rents by up to 215 per cent and 238 per cent respectively, though both have struggled to remain at or above headline rent levels in the last two years. The increase in these headline rents over both products particularly since 2023 has narrowed the gap between flexible workspace returns and traditional rental levels.

“Bristol is buzzing,” says 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 five years are still positive with returns reaching levels of over 230 per cent. Demand for flex remains strong, with supply of quality product not keeping up.” 

• Edinburgh & Glasgow

Edinburgh’s 3* net returns dipped below market rents in 2025 for the first time since 2021, although in contrast, its 5* product achieved peaks exceeding 400% of market rents and routinely in excess of 200 per cent over the five-year period.

In Glasgow, 5* gross returns outperformed prime headline rents by up to 280%, while 3* returns, similar to those in Leeds and Bristol fluctuated above and below market levels.

Kinnear said: “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.” 

• Leeds

Leeds has arguably been the most volatile market. After reaching returns of up to 160 per cent in 2022, performance fluctuated for two years. The 5* product has since been above rent levels for the past year. 3* returns, previously stable above rents since early 2023 but fell below market levels towards the end of last year.

“The story remains strong in Leeds, but its growth is being tempered by wider regeneration, which is reshaping supply and market dynamics,” adds Kinnear.

• Manchester

Manchester has shown consistent performance across all product tiers. 5‑star returns peaked at 210 per cent in 2023 and have remained above 110 per cent since 2021, while 3‑star returns have stayed within a stable range of 110 per cent to 155 per cent of headline rents, representing the most reliable performance among the Big Six cities.

Kinnear commented: “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.” 

By bridging the gap between traditional rents and flexible workspace returns, the index offers landlords, investors and operators a practical framework for decision-making in an increasingly important segment of the office market.

To read the full report click here.