Derby-based flexible workspace operator Cubo reported annual recurring revenue exceeding £30M (€34M/$39M) as it plans new site launches across the UK. Founded in 2020, Cubo operates 13 locations across England and Scotland.

The operator achieved record occupancy rates with five locations fully let and reported its highest number of enterprise client sign-ups, including growing blue-chip organization membership. In 2024, Cubo acquired three floors in Manchester, one of six provincial UK WeWork sites. New locations are scheduled to open in late 2025 and early 2026 as part of the company’s expansion strategy.

Paul Thomas shares some interesting shifts highlighted by recent CoStar data. We see a big move from the established brands to newer, high-end operators who are winning more and more deals.

For 2018 to 2022, flex leasing was going to Spaces (25%), WeWork (19%), Regus (16%), Instant Offices (13%), Orega (11%), X+Why (7%), Pure Offices (5%) and Gilbanks (4%).

Fast forward to 2023 and 2024: Cubo (33%), Orega (13%), IWG (13%), 2-Work (9%), Runway East (9%), Re-Defined (8%), Gilbanks (8%) and Wizu Workspace (7%).

With locations in 10 markets around the UK, Cubo Work has finally arrived in London with their newest space opening just off of Soho Square. The location sized 18k sqft, which most recently was a bookstore, is part of Soho Estates’ largest mixed-use development.

The building is already home to large tenants such as Warner Bros. and reinforces a trend we’re seeing where owners are seeking out flex operators to fill vacancies, as part of a strategy to make up a mix of workspace and not rely solely on traditional long term single tenants.

I don’t usually share move-in (or move-out) news in these summaries, but when international real estate firm Savills shares that they’ve proudly relocated a local office into a Cubo workspace, it’s worth taking a beat.

Maybe this means more Savills’ brokers will better understand flex space products? I mean they should have a pretty good idea already given that Savills owns WorkThere.

Cubo will be opening an 18k sqft hub in Derby, their second in the city. This follows news that their sister company Staton Young acquired the building in January this year.