Flex has matured, but its economics still hinge on one unresolved tension: short-term premium yield versus long-term income certainty. The Flex & Partnerships Tribe at CREAM UK 2026 examined where operators draw that line, and was clear that occupancy is largely not the problem - retention is. Against rising competition and cautious landlords, the overarching theme was that flex has the performance story to justify greater investment; the task now is telling it convincingly enough to bring landlords and capital along.
Tribe Host: Lee Zweig (Wavenet) [Pictured]
Co-Hosts: David Kaiser (Oneder), Freddie Fforde (Patch), Catherine Le Druillenec (Knotel), Josie Baum (ARC Club) and William Stokes (Co-Space)
Summarised by: Gift Okolie (The Land Collective)
Yield Versus Certainty: The Central Trade-Off
The core tension in flex is the balance between short-term premium yield and the absence of long-term income certainty. Operators are actively managing this trade-off, and the Tribe was clear that occupancy itself is largely not the issue - retention is. Keeping occupiers in place over time, rather than simply filling space, is where the real economic challenge lies.
Intensifying Location and Competition Risk
Location and competition risk are intensifying. The flex market is growing rapidly, which makes it harder to secure well-priced, well-developed buildings in premium areas, particularly as more operators chase the same limited stock. The pace of change in what occupiers want adds a further cost burden: adapting spaces frequently is expensive, and finding occupiers willing to commit to premium locations on short contracts compounds the difficulty. Together, these pressures squeeze margins precisely where operators are trying to differentiate.
Biggest Opportunity: Telling the Flex Story to Investors
The clearest opportunity lies in closing the communication gap between flex operators and the investment community. Year-on-year growth in the sector is demonstrable, but that story is not being told effectively to landlords and investors. Presenting flex as a credible, data-backed investment - rather than a fringe offer - represents a significant opportunity to unlock more partnerships and grow assets under management. The operators who can evidence their performance and translate it into the language investors trust stand to convert market scepticism into capital and stock.
Biggest Challenge: Landlord Conservatism as a Structural Barrier
The principal obstacle remains landlord conservatism, which acts as a structural barrier to the market's growth. Most landlords still prefer traditional five- to ten-year leases and continue to view flex as higher risk, which limits the volume of suitable stock available to operators and slows the sector's potential. Until that perception shifts, operators will remain constrained not by demand from occupiers, but by the willingness of asset owners to commit buildings to the model.
CREAM UK took place on 23 June 2026 at Fulham Pier, London.
Find out more about the event at space-plus.org/cream-uk