Managed office rates hit £850 amid 101% supply surge,
says latest Rubberdesk Report

London’s flexible office market is entering a new phase. Today, Rubberdesk released its Q2 2025 report, revealing a sharp pivot towards premium managed offices - with supply up a whopping 101% year-on-year and average desk rates in Central London now hitting £850.

While headline desk rates across the capital held steady at £625, managed space is driving the market narrative. Rubberdesk found that managed offices now account for 2.9 million sq ft across London, growing 1.9% quarter-on-quarter and more than doubling year-on-year.

Managed model in the spotlight

Central London is leading the charge, with managed space climbing 2.6% in Q2 and 124.9% over the past year. Businesses are proving willing to pay a premium for turnkey, customisable environments that combine privacy with flexibility - a model increasingly appealing to landlords too, as they adapt portfolios to meet evolving occupier needs.

“Managed offices can no longer be dismissed as a market fad,” said Ashley Diamond, COO of MetSpace. “They are now recognised by increasing numbers of occupiers as a genuine, alternative way of using and maximising their office requirements”.

Regional shifts

The surge isn’t confined to the city centre.

• East London saw managed space jump 13.5% in Q2, with desk rates up nearly 10% to £685.

• South London recorded the most dramatic swing, with managed supply rising 22.4% in the quarter - and more than 1,400% year-on-year.

• North London also posted growth of 23.2%, led by hotspots such as Islington.

• West London, despite a 20.8% dip in available managed stock, maintained strong rate growth, signalling high occupancy and sustained demand.

Serviced offices, meanwhile, are being outpaced. Availability declined 12.6% across London in Q2 as demand remained resilient, with rates broadly holding or posting modest gains.

Occupier demand

Team size dynamics are also shaping the market. Mid-sized occupiers (26–50 people) are fuelling rate growth across East, North and Central London, while enterprise spaces for 50+ remain robust - particularly in North London, where desk rates reached £837.

A market in motion

Commenting on the findings, Tom Petryshen of Rubberdesk noted: “Landlords are now shaping the demand, not just reacting to it. The rise of managed offices shows how quickly the market is pivoting to meet the needs of modern businesses”.

As London’s flex market matures, the managed office sector looks set to remain the key growth engine, reshaping both landlord strategies and occupier expectations.

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