Flexible Office Market Report 2026

The flexible office market size has grown rapidly in recent years. It will grow from $48.33 billion in 2025 to $56.04 billion in 2026 at a compound annual growth rate (CAGR) of 16%. The growth in the historic period can be attributed to shifts toward flexible working arrangements, rising startup and freelance workforce, increasing urbanization, demand for cost-efficient office solutions, expansion of shared workspace operators.

The flexible office market size is expected to see rapid growth in the next few years. It will grow to $100.4 billion in 2030 at a compound annual growth rate (CAGR) of 15.7%. The growth in the forecast period can be attributed to increasing enterprise adoption of distributed workforce models, rising focus on sustainability in office design, expansion of digital workspace management platforms, growing demand for scalable office infrastructure, increasing corporate outsourcing of office space needs. Major trends in the forecast period include increasing demand for short-term office leases, rising adoption of hybrid work environments, growing preference for plug-and-play office spaces, expansion of membership-based workspace models, enhanced focus on employee experience and collaboration.

The rising adoption of remote and hybrid work arrangements is anticipated to drive the expansion of the flexible office market in the future. Remote and hybrid work models are defined as flexible employment setups that allow employees to work entirely or partially outside conventional office environments. The growing preference for these models is primarily attributed to increased employee demand for flexibility, which supports improved work-life balance and enhanced productivity. Flexible office spaces facilitate remote and hybrid working by offering adaptable, fully equipped work environments that can be accessed as needed, supporting collaboration and efficiency beyond traditional office settings. For example, in February 2023, according to the Office for National Statistics, a UK-based national statistical institute, between September 2022 and January 2023, 16% of working adults who were employed during the previous seven days worked exclusively from home, while 28% combined working from home with commuting to their workplace. Consequently, the growing adoption of remote and hybrid work models is contributing to the growth of the flexible office market.

Leading companies in the flexible office sector are prioritizing advanced innovations such as tech-integrated infrastructure to improve user experience, enable seamless hybrid work, and boost operational efficiency across coworking and private office spaces. Tech-integrated infrastructure involves embedding advanced digital tools and connectivity systems - including high-speed internet, smart meeting rooms, access control, and cloud-based platforms - within office environments to support smooth and efficient hybrid workflows. For instance, in June 2023, Switzerland-based flexible workspace provider IWG plc launched The Engine Room at London’s Battersea Power Station to address rising demand for hybrid workspaces. This premium coworking and office facility features cutting-edge technology infrastructure and modern design tailored for flexible use. The launch aligns with IWG’s strategy to expand into prestigious UK locations. The Engine Room offers scalable workspaces and collaborative amenities aimed at supporting professionals and growing businesses, fostering a vibrant and productive community through adaptable, innovative workspace solutions.

In January 2025, CBRE Group, a US commercial real estate services and investment company, acquired Industrious National Management Company LLC for $0.8 billion. This acquisition enhances CBRE’s service offerings by integrating Industrious’ expertise in flexible office solutions and its asset-light operating model. It led to the creation of a new business unit, Building Operations and Experience (BOE), focused on providing integrated, scalable workplace solutions. Industrious National Management Company LLC, based in the US, specializes in flexible workspace offerings including coworking areas, private offices, and meeting rooms designed to meet diverse business needs.

Major companies operating in the flexible office market are CBRE Group Inc., International Workplace Group plc, Newmark Group Inc., Yardi Systems Inc., JustCo Global Pte. Ltd., Mindspace Ltd., Servcorp Limited, Serendipity Labs Inc., Compass Offices Holdings Limited, Huckletree LTD, Hub Australia Pty Ltd., IndiQube, SimplyWork Co. Ltd., LiquidSpace Inc., Ally Spaces Inc., District Cowork Inc., The Boutique Workplace Company Ltd., Garage Society Limited, The Flexi Group Holdings Ltd., IWG.

North America was the largest region in the flexible office market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the flexible office market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the flexible office market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The flexible office market includes revenues earned by entities by providing services such as hot desking, meeting and conference rooms, and dedicated desks. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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