Flexible offices are often viewed as a final solution to workplace needs, with many choosing them over traditional leases. However, it’s easy to forget that for many, it serves not as the final destination but as a bridge between the ‘garage start-up’ and a corporate headquarters.
Flexible Offices – Flexible Location
With the market now well established, the original appeal of this space offered by operators was flexibility , not only in lease terms but also location. Having the freedom to move both within your building as well as across the city highlighted accessibility as a core driver for growth, and it remains so today. Simply put: Access to people + Access to markets = Growth.
Midtown: The Bridge Between Markets
Historically, a clear divide has existed between the City and the West End, each boasting abundant options and claiming superior opportunities. More recently, Midtown has risen as a bridge across Central London, connecting the City to the West End. It combines the strengths of both markets (strong retail offering, sizeable green areas, and good transport connections) whilst avoiding many of their drawbacks (overcrowding and soaring prices).
As a result, the flexible market in Midtown is thriving. Many operators have recognised its value not just for its accessibility or pricing, but because it allows them to deliver full-service, high-quality workspaces at scale. This creates the environment that occupiers crave; to cultivate emerging companies at a more accessible price point without compromising on the service provided, which is typically found in neighbouring districts.
The Space Advantage
So, how is this possible?
The answer lies in scale.
The unique advantage Midtown has over the City and the West End is its relative abundance of space. Flexible offerings in the neighbouring markets are often confined to a couple of floors in a building, whereas Midtown allows providers to occupy and operate entire buildings. Listed below are examples of buildings in Midtown where the whole building is available to service the end occupiers:
- Fora, Chancery House – 156,231 sq ft
- Uncommon, Templar House – 105,511 sq ft
- MYO, New Street Square – 43,031 sq ft
- Beyond, Fox Court – 103,000 sq ft
- GPE, Elms Yard – 51,200 sq ft
- WeWork, Aviation House – 177,000 sq ft
This unlocks economies of scale, being able to provide multiple amenities like business lounges, terraces, and event space which can be integrated under one roof without compromising desk capacity. Consequently, neighbouring market providers must re-allocate valuable square footage from office space to these amenities to compete, requiring multiple locations to match the same service provision.
Source: operators own availability schedules
Collectively, these six buildings in Midtown represent a total building commitment of 636,000 sq ft, averaging 106,000 sq ft across each site. Consequently, each building has the capacity to provide an array of services in-house, including a selection of events space, breakout areas, roof terraces, bar services, cafes, and workout studios.
By contrast in the City, where the largest presences of each of the same operators totals 343,000 sq ft, the offices achieve an average of 57,000 sq ft each. Of these, only half occupy entire buildings, restricting the scope of amenities which are available and limiting their ability to offer a comprehensive managed experience.
The West End faces further constraints, with the additional restriction on building height meaning that the five largest providers’ biggest presences total just 207,000 sq ft, equating 41,500 sq ft each.
Source: operators own availability schedules
The preference for occupying entire buildings is evidenced by the graph above, which shows that when operators are shown the opportunity to take total control of an asset, they do so as it gives them the freedom to manage the whole building and offer a superior product.
Despite its position between the City and West End, Midtown stands apart in how it is utilised by flex operators. Operators not only demonstrate a strong preference for delivering their services through a sole-occupancy model, but in the markets such as the West End and City where this is less readily available, they are forced to distribute their presence across a greater amount of smaller assets, diluting the efficacy of the all-in-house service.
This reinforces the view that scale and control are central to operator strategy. The concentration of larger, single-operator buildings in Midtown therefore provides a clear advantage that is difficult to replicate in either the City or West End.
Price Disparity = A Market of Opportunity
Whilst it’s not a ground-breaking observation to point out that price per square foot is higher in the City and West End compared to Midtown, in a flex-market that prides itself on value being placed equally on both office space itself as well as the building’s service provision, you would expect to see this reflected in the pricing. However, the numbers suggest otherwise:
- Midtown: £500 – £850 per desk
- City: £650 – £1,100 per desk
- West End: £600 – £1,600 per desk
Historically the West End & City have commanded higher rents and running costs for operators and this has resulted in an inflated ‘per desk’ cost for the end user. Midtown does not suffer to the same extent and, coupled with the ability for operators to deliver a wider range of services within a self-contained building, it allows for a more cost-effective solution for occupiers. This reveals a clear disparity that suggests Midtown remains undervalued relative to its location and offering, with occupiers getting better value for their money, with more space and services for less cost.
The Network Effect
Midtown is not just central, it’s interconnected. Many flexible workspace providers allow tenants to move between sites across London, so positioning your business in Midtown gives occupiers easy access to the City and West End (Central, Elizabeth, Circle, and District lines), without paying their premium rents. From here, occupiers can enjoy the best of both worlds, with flexible access to West End lounges as well as the more corporate style spaces in the City, all whilst benefitting from a cost-effective flagship in Midtown, where costs are lower and services richer.
Simply put, Midtown can offer the best balance of price, scale, and access across London’s core markets. As a result, it’s no surprise that many operators capitalise on this opportunity to maximise their Midtown assets; therefore, these buildings may be classed as flagship locations, showcasing the highest quality capabilities, amenities, and standards.
Conclusion
In summary, I believe that Midtown is on the rise amongst flexible workspace operators, offering the opportunity for superior products when comparing cost, flexibility, space and access. It stands out as the most strategically positioned market for flexible offices in Central London – and what are these spaces if not flexible.
It offers operators the space to deliver full-service, experience-led environments, while providing occupiers with better value, broader amenities, and seamless access across the capital.
Need to meet a client in the City or West End? Go ahead. But for businesses looking to balance cost, flexibility, and market presence, Midtown delivers on all fronts. It’s not just a midpoint, it’s the starting point.
Frank Hawkins | 07394802129 | FHawkins@danielwatney.co.uk
