For years, the flexible workspace playbook was simple. Lease a building, fit it out, fill it with members, and live off the gap between what you pay and what you earn. London operator Hubflow is now rewriting that script. After buying the freehold of its flagship site, it has just announced two more City of London locations, taking it to ten. The message is clear: in flex, operations and ownership are starting to merge.
Two new addresses and a flagship of its own
The headline numbers are modest, but the strategy behind them is not. Hubflow is adding around 2,300 sqm of flexible space across two new City of London sites. The first is roughly 790 sqm and can be taken as a basic shell, partially fitted, or fully fitted and move-in ready. The second is a larger floor of about 1,500 sqm. With these additions, the network reaches ten locations: nine in London and one in Belfast.
The more interesting move came earlier. Hubflow acquired the freehold of 37 Lombard Street, its flagship building, which is fully let. The purchase was made through a dedicated investment vehicle set up with partners including Whiterock Capital, which had already backed Hubflow’s expansion. Hubflow says it is now looking at further acquisitions in central London.
The company is aiming at the premium, hospitality-led end of the market. Its offices are let on flexible terms, with bills, concierge services and maintenance included in one price.
From tenant to landlord: why bricks beat leases
Hubflow’s CEO, Gary McCausland, has argued that most operators have focused on leasing buildings, and that the future belongs to those who combine strong operations with selective ownership of high-quality real estate. It’s easy to see the logic.
Your building, your rules. When you own the building, you decide when to upgrade lifts, lobbies or air conditioning. You aren’t negotiating with a landlord whose priorities may differ from yours, and you don’t risk losing a successful location when a lease expires.
Investors love bricks. Flex operators have often struggled to attract long-term funding because their income depends on short contracts while their costs (rent) are locked in for years. Property ownership, held in a separate investment vehicle, gives investors something they understand: a real asset. Hubflow itself describes the structure as a source of long-term capital for further growth.
The building grows with the business. A well-run flex building can lift occupancy and rents. If you own the freehold, part of that improvement shows up in the value of the asset, not just in the operating profit.
Promise premium, own the premises. If you promise high-spec, hospitality-style space, it helps to control the building that delivers it.
Careful: buying the building means playing a different game
Of course, owning buildings is a different business from running them. Property is capital-intensive and illiquid, and a single acquisition can tie up serious money. If financing becomes more expensive or office values soften, an owner-operator feels it on the balance sheet, not only in the monthly P&L. Concentration is another risk: a handful of buildings in one city means a lot of exposure to one market.
That is why the word “selective” in Hubflow’s pitch matters. Buying the flagship, a proven and fully let building, is very different from buying every site in the portfolio. Whether the model scales will depend on discipline, and on investors who remain patient.
What you’ll notice as a tenant (and what to ask)
If you rent flexible space, the shift towards ownership is mostly good news, with a few questions worth asking.
- Ask who owns the building. An operator that owns its site has fewer reasons to leave, which can mean more stability for you.
- Look at the fit-out options. Hubflow’s choice to offer shells, partially fitted and fully fitted floors shows operators are responding to occupiers who want to shape their own space.
- Check the all-in price. Bills, concierge and maintenance included in a single fee make budgeting simpler. Compare it carefully with traditional lease costs.
- Think long-term. A flexible contract in a building the operator controls can be a good compromise between agility and security.
Final word: the line between operator and landlord is blurring
Hubflow is not the first flex operator to explore ownership, but its move fits a wider pattern: as hybrid working matures, the winners are likely to be those that deliver consistently high-quality space and have the financial backbone to keep doing so. Whether you operate, invest in or rent flexible offices, the line between “landlord” and “operator” is blurring.
