Grosvenor taps x+why for first regional flex launch at Manchester’s The Hive

Grosvenor has begun work on the repositioning of The Hive in Manchester’s Northern Quarter, partnering with flexible workspace operator x+why to deliver its first directly managed flex offer outside London. Here’s what you need to know.

The 78,000 sq ft landmark building on Lever Street is being reimagined as a destination workplace, with 25,500 sq ft of flexible workspace set to be delivered alongside a hospitality-led amenity offer. A ground-floor deli and restaurant will anchor the scheme, bringing a more experiential layer to the building’s offering.

Crucially, the project will become Grosvenor’s first directly managed flexible workspace outside London, with completion targeted for autumn 2026. The move reflects both the maturity of its flex strategy and Manchester’s continued strength as one of the UK’s leading regional office markets.

To operate the space, Grosvenor has cherry-picked x+why, which will manage over 22,000 sq ft within the building. The partnership builds on the two companies’ existing relationship at Fivefields in London’s Victoria, where x+why has been delivering a social impact-led workspace since 2023.

“Combining x+why’s experience in creating design‑led, community‑focused workspaces with our approach to active asset management, we are well placed to deliver a distinctive, flexible offer that responds to local demand, broadens our occupier mix and strengthens the long-term resilience of our regional portfolio”, said Fergus Evans, Office Portfolio Director, Grosvenor Property UK.

Design will be central to the identity of The Hive. Interiors, led by x+why’s in-house team, will draw heavily on local context—incorporating work from Manchester-based furniture designers and artists, while thoughtfully retaining elements from the building’s past. The result is intended to feel both rooted and contemporary, reflecting the character of the Northern Quarter.

“The Hive is a strong example of what our regional offices strategy is designed to deliver”, Evans commented, “taking a prime asset in a great location and repositioning it to meet the evolving needs of today’s occupiers.”

Across the portfolio, Grosvenor’s ambition, he added is “to deliver best-in-class workspace that combines high-quality design, strong sustainability credentials, hospitality-style service and a compelling amenity offer. Manchester continues to perform strongly for us, and our investment in The Hive reflects sustained demand for well-located, high-quality offices, particularly from the city’s growing digital and creative economy.”

Rupert Dean, CEO and Co-founder of x+why, described the building as having “a strong identity and history within Manchester’s creative community, and we see a huge opportunity to further that legacy”.

He added: “Our focus is on creating spaces where work, hospitality and community come together seamlessly. The Northern Quarter is one of the most exciting and entrepreneurial parts of the UK, and The Hive will reflect that energy, offering a workspace that is not only functional, but inspiring and socially driven.”

Set within Grosvenor’s wider regional portfolio, the scheme reflects the strength of Manchester’s office market, where demand for high-quality, well-located space (particularly from digital and creative occupiers) continues to hold firm.

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