Billy Hodges and Holly Bailey shared CBRE's London Flex Market Update report for Q1 2026 that shows tenant demand is up sharply, with flex requirements rising 40%, and 43% of transactions coming from TMT (tech, media, and telecom) clients, mostly AI-driven companies looking for smaller, agile spaces near major transport hubs.

Prime flex office rates are up roughly 10% across core submarkets, with operators like Runway East and Industrious expanding into high-quality West End locations, while landlords like Yoo Capital are increasingly partnering with flex operators rather than leasing to traditional tenants. CBRE expects 2026 to be a record year for flex transactions, driven by a tight development pipeline, fast-growing AI companies, and a maturing flex market that now supports longer-term occupier commitments.