Time for Birmingham to flex, says CBRE

With its 700,000 sq ft of landlord-operated or serviced office space at a record high of 84% occupancy, Birmingham urgently needs more flex space, according to the consultancy’s latest report.

CBRE’s newly published European Flex Market Update 2025 outlines how the city has just 4% of its total office stock dedicated to third party or landlord-operated coworking or serviced office space.

For a comparison, flex office space in Manchester accounts for 6% of total office stock at 1.7m sq ft, with London at 12%, or around 15m sq ft).

Average occupancy rates in Birmingham are now 84%, compared to 73% in Manchester.

Dan White, CBRE’s head of flex for the Midlands and South, said the statistics demonstrate the headroom for the growth of the flex sector in Birmingham.

He said: “Businesses are increasingly allocating more of their real estate portfolios to flexible space. In Birmingham, with occupancy rates at historic levels, their choices are narrowing.”

Two new flex operations have come on stream in the last month: Gilbanks has opened 22,000 sq ft of flex space at Five St Philips – and is letting quickly, with 50% of its space now signed up for – while Covalt has launched 27,000 sq ft at 1 Victoria Square.

White said that he expects an additional 50,000 sq ft to be introduced to the market in H1 2026, including 24,500 sq ft currently under offer to a flex operator at Multistory.

• Read CBRE’s European Flex Market Update 2025 report here

Take-up of flex space in Birmingham is dominated by the financial and professional services sector, which has accounted for more than 50% of transactions in 2025 to date. Going forward, White predicts increased interest from tech, media and telecoms, a critical element of the London market.

White also forecasts an increase in demand for managed offices in 2026 – offerings that are private, but fully serviced spaces, with everything from design, furniture, utilities and daily operations handled by a provider but with the privacy and branding of a traditional lease.

He said: “To date, we have just one example of this in Birmingham – Accenture’s 8,600 sq ft letting at Bruntwood SciTech’s Cornerblock. However, this hybrid occupational model is gaining momentum in London and I’m convinced we’ll see more of it here in the coming year.”