The office isn’t dead…yet, it’s just evolving
The way businesses use office space is undergoing a major transformation. The era of rigid, long-term leases is fading as companies embrace more agile, cost-effective solutions.
With WeWork’s challenges, rising commercial real estate costs, and hybrid work shaping demand, businesses in London can take a step back from what they think they know, and rethink their entire office space strategy.
At ADAPT, we help fast-growth businesses secure high-value, flexible workspaces tailored to their needs. The World Economic Forum suggests that 2025 will be a pivotal year for commercial real estate with battered property owners reassessing their long-term strategies and the industry poised for recovery.
However, the real winners will not be the commercial real estate magnates, but businesses that choose workspaces designed for flexibility, strategic investment, and sustainable, growth-friendly decisions.
Here’s where the market is heading and how businesses can get ahead:
WeWork’s decline and the shift to smarter workspaces
Once valued at $47 billion, WeWork was the face of the flexible office revolution. But after filing for bankruptcy in 2024, closing dozens of locations, and losing investor confidence, the market is shifting towards better-value, smarter workspaces.
While many WeWork premises remain open despite its struggles, and other lesser-known brands have popped up in their place, demand for flexible work environments remains high. A 2024 report by JLL found that 77% of companies now prioritise workspace flexibility, with many opting for shorter leases and on-demand office space.
Businesses aren’t abandoning offices, they’re just seeking better contracts, stronger value, and spaces that truly reflect their company culture.
At ADAPT, we specialise in finding off-market workspace solutions that foster collaboration, innovation, and smart business growth.
The cost of office space in London: the harsh reality
London remains one of the most expensive office markets in the world. In 2024, prime office rents in the West End hit £300 per square foot or more, outpacing markets like New York’s Fifth Avenue.
Yet the market isn’t uniform. The City of London saw rents drop by 8% in 2024, reflecting a shift in demand towards more flexible and cost-efficient workspaces in more up and coming areas of the capital. This underscores a key trend: businesses are moving away from traditional long-term leases in favour of more agile, scalable solutions.
Companies working with ADAPT get access to hidden workspace gems that deliver exceptional value, London-wide, providing:
- Up to 30% lower costs compared to traditional leases
- Exclusive off-market deals in prime locations
- Scalable office solutions that grow (or shrink) with your business needs
By working smarter, businesses can avoid overspending and secure spaces that truly support their growth plans and can stretch up or down, as you need them to.
Hybrid work isn’t a threat, it’s an opportunity and an advantage
Reid Hoffman, LinkedIn’s founder, argues that the competition between remote and office work is a positive shift. He argues the very best companies aren’t forcing employees back to the office, they’re creating environments that people want to come into. He could be right.
The ADAPT view is that hybrid work isn’t about choosing between remote and in-person – it’s about building an in-person workspace that’s always available for your team that enhances productivity, collaboration, and business culture. That means:
- Offices designed for collaboration, not just attendance
- Flexible terms that reduce unnecessary overhead costs
- Workspaces that attract talent and can evolve alongside business needs
Companies embracing this new workspace reality are seeing the biggest gains in talent retention, productivity, and cost efficiency.
2025: the year of smart workspace investment
The World Economic Forum reports that 2025 marks a buying cycle in commercial real estate, with top-tier investors and businesses moving towards more strategic workspace investments, with Deloitte agreeing.
But this doesn’t mean rushing into expensive long-term leases as a growing company. The smart move until your profits are tangible enough is securing flexible workspace solutions that align with business goals and fit with your current path of scaling. The WEF report makes clear:
- 66% of global real estate markets are in a “buy” phase with a further surplus of availability likely, creating major opportunities for companies to secure better deals
- The UK commercial office vacancy rate hit a still-low 10.5% in late 2024, driving landlords to offer more attractive terms to encourage tenants
- Flexible office demand surged by 22% in 2024, making adaptable workspaces the preferred choice for most growth-focused businesses.
It’s a flexi-renter’s market and you can jump on that bandwagon and secure an incredible space to fit your budget. The time is now!
At ADAPT, we help businesses:
- Access exclusive, off-market spaces that deliver exceptional value
- Find scalable office solutions that adapt as teams grow
- Secure workspaces that feel like home, not just a place to work
The future is flexible
London’s office space market is changing fast. Costs are rising, hybrid work is evolving, and traditional leasing models are no longer effective. The businesses that thrive in 2025 will be those that adapt to this new landscape, securing flexible, high-value workspaces that promote collaboration, innovation, and sustainable growth.
If you’re looking for a workspace that works smarter, not harder, let’s talk. ADAPT is here to guide you through the market and help you find the perfect space for your next stage of growth.
