Landlords and Flex Operators: The Rise of New Deals
The office market across Europe and the UK is undergoing its most significant transformation in decades. Where once landlords relied on traditional 10–15 year leases with corporate occupiers, the rise of flexible work has rewritten the rulebook. Today, a growing number of landlords are entering into partnerships with flex operators to deliver space-as-a-service, reflecting a deeper structural change in commercial real estate.
In the UK, the shift is especially pronounced: 67% of flexible workspace deals in early 2025 were structured as management agreements, the highest proportion ever recorded (Savills). Instead of simply collecting rent, landlords are now working alongside operators under management and revenue-sharing models. This new alignment benefits both sides: landlords gain future-proofed income streams and improved asset performance, while operators expand more sustainably, without the risk of lease liabilities.
This blog explores how these partnerships are reshaping the landscape, why they matter, and where the trend is heading next.
What Are Landlord–Flex Operator Partnerships?
At their core, these partnerships mark a departure from the binary “landlord-tenant” relationship. Instead, landlords and operators collaborate to deliver flexible, serviced workspaces under joint models.
Traditional lease model: The operator signs a long lease (often 10–15 years), fits out the space, and takes full operational risk.
Management agreement: The operator runs the space under its brand, earning a management fee plus performance-linked upside, while the landlord retains ownership and income share.
Revenue-sharing deal: Profits from the space are split between landlord and operator, aligning incentives more directly.
Hybrid leases: A base rent is paid, but additional revenue is shared above agreed thresholds.
These new structures represent a redistribution of risk, capital expenditure, and reward. Operators contribute brand, expertise, and community management, while landlords provide the building, capital, and long-term vision.
Why This Model Is Growing
Shifting tenant expectations for flexibility
Occupiers are demanding flexibility, shorter commitments, and plug-and-play office solutions. Since the pandemic, hybrid working has accelerated this demand: many corporates now take a blend of traditional HQ space and flex offices to accommodate project teams, satellite hubs, or temporary requirements.
Reduced risk and upfront costs for operators
Operators no longer need to carry heavy lease obligations. With management agreements, they can expand quickly and sustainably, accessing premium buildings without debt-laden commitments.
Consistent income streams for landlords
Rather than risking long vacancies or rent arrears, landlords gain an ongoing income stream linked to occupancy. In buoyant markets, they also share in the upside — something not possible under fixed leases.
Growth of “space-as-a-service”
Tenants now view offices as services, not just square footage. Just like hotels, they expect design, hospitality, technology, and sustainability. Partnerships enable landlords to compete in this new arena.
Types of Partnership Models
Management agreements explained
The most common model in the UK. The landlord retains control of the asset, while the operator manages the space under their brand. The landlord pays a base fee and performance-linked bonus, while collecting the majority of income.
Case note: British Land – Storey
British Land developed its own flex brand, Storey, to serve occupiers seeking high-quality fitted space on flexible terms. The brand operates under a landlord-led model, but shares many characteristics with partnerships — British Land controls the asset, while Storey brings operational expertise and design focus.
Revenue-sharing deals
Here, income is shared between landlord and operator after costs. Both parties are incentivised to drive occupancy and member experience.
Case note: Landsec – Myo
Landsec’s “Myo” brand was launched in 2019 and has since expanded across London. While not always structured as partnerships with third-party operators, Myo demonstrates how landlords are adopting revenue-sharing models internally — creating flex products that attract tenants without ceding full control.
Hybrid or profit-participation leases
Some deals combine elements of base rent with variable profit-sharing. This hybrid model is popular in continental Europe, balancing stability for landlords with upside potential.
Case note: Gecina – Wellio (France)
French REIT Gecina launched Wellio, offering coworking and flex solutions across Paris, Bordeaux, and Marseille. The model allows Gecina to blend traditional leasing income with flex revenue streams, diversifying its portfolio.
Regional Trends in 2025
UK: the flex frontrunner
The UK is leading the European shift. According to JLL, London is the largest flex office market in Europe, with over 20 million sq ft of flexible workspace. In early 2025, management agreements accounted for 67% of new deals, underlining landlords’ confidence in partnership structures.
British Land (Storey) and Landsec (Myo) are prime examples of landlord-led initiatives.
Many landlords are now seeking third-party operator partnerships to diversify income while retaining asset control.
Europe: landlords diversifying into flex
Across Europe, REITs and institutional owners are moving into flex:
Gecina (Wellio): integrating coworking into core assets.
HB Reavis (Origameo): offering consulting and managed flex solutions across Central Europe.
DSTRCT.Berlin: a mixed-use development combining traditional leases with operator-led flex.
Savills reports that flex now accounts for 6–8% of prime office stock in Paris, Berlin, and Amsterdam, with partnerships driving most new openings.
US: slower uptake but rising interest
The US remains dominated by long leases, but institutional landlords are increasingly open to partnerships. New York and Chicago are seeing landlord-operator collaborations, particularly in Class A buildings where enterprise occupiers demand flex options.
CBRE’s 2025 outlook predicts that flex will represent 15–20% of office portfolios in major US cities by 2030, with partnerships a key driver.
Asia: landlords embrace flex for corporates
In Singapore and Hong Kong, flex is being used as a strategy to attract multinational corporations. Many landlords are developing in-house brands or working with regional operators to provide turnkey solutions.
Benefits for All Stakeholders
For landlords
Higher yields: Flex spaces often generate higher revenue per sq ft than traditional leases.
Tenant retention: Flex tenants often “graduate” into longer leases within the same building.
Future-proof assets: Buildings with flex are more attractive to investors and occupiers alike.
For operators
Brand expansion: Partnerships provide access to premium buildings.
Reduced capital risk: No need for large upfront fit-out investment.
Operational focus: Freed from lease liabilities, operators can focus on service and community.
For tenants
Choice and agility: Ability to scale space up or down quickly.
Turnkey solutions: Fully fitted, serviced offices without capex.
Enhanced experience: Hospitality-led, tech-enabled workplaces.
For investors/asset managers
Valuation uplift: Assets with strong flex offerings attract higher bids.
Portfolio resilience: Diversified income streams reduce risk of obsolescence.
Alignment with ESG: Shared space supports sustainability goals.
Challenges & Risks
Revenue volatility
Flex revenues are tied to occupancy and demand. In downturns, landlords may earn less than under fixed leases.
Operational alignment
Partnerships require alignment of interests. Poorly structured agreements can create disputes over fees, performance, and brand standards.
Brand consistency
When landlords roll out partnerships across multiple buildings, maintaining consistent service quality is critical to protect both brands.
Legal and structural complexity
Management agreements differ from leases in terms of tax, accounting, and regulation. Careful structuring is required, particularly for listed REITs.
The Future of Space-as-a-Service
Proptech as the enabler
From booking platforms to digital access control, proptech is central to delivering seamless flex experiences. Many landlords are integrating tech stacks into their assets to enable multi-tenant flex use.
ESG and sustainability
Flex supports ESG agendas: shared amenities reduce resource use, while efficient fit-outs lower carbon intensity. Tenants increasingly demand green-certified flex offices.
Landlord-led flex brands
Institutional landlords are developing their own flex brands to capture more value. This mirrors the hospitality industry, where asset owners and hotel operators collaborate under branded management agreements.
Investor outlook to 2030
By 2030, analysts expect 30–40% of prime office portfolios in Europe to include flex components. Flex is no longer a niche but a permanent feature of the CRE landscape.
FAQs
Why are landlords partnering with coworking and flex-space operators?
To meet tenant demand for flexibility, share operational expertise, and future-proof income.
What is the difference between a management agreement and a traditional lease?
A lease fixes rent for years; a management agreement ties income to performance, with the operator running the space on behalf of the landlord.
How do revenue-sharing deals benefit landlords and operators?
They align incentives — both parties profit when occupancy and revenue are strong.
Is the rise of flexible office leases just a UK trend, or global?
The UK is leading, but Europe, the US, and Asia are all embracing partnership models.
What does “space-as-a-service” mean in commercial real estate?
It means delivering office space as a service — flexible, turnkey, and experience-driven — rather than a static leased asset.
Conclusion
The line between landlords and flex operators is blurring fast. With management agreements and revenue-sharing deals on the rise, both sides are finding ways to reduce risk, capture upside, and meet changing tenant needs. For landlords, partnerships represent an opportunity to enhance yields and keep buildings relevant. For operators, they provide a scalable, sustainable growth path.
The future of commercial real estate is collaborative, flexible, and service-led.