Flexible Office Market Report 2025

The flexible office market size has grown rapidly in recent years. It will grow from $41.61 billion in 2024 to $48.33 billion in 2025 at a compound annual growth rate (CAGR) of 16.1%. The growth during the historic period can be attributed to the increasing adoption of hybrid work models, a rising number of startups, growing demand for cost-effective workspace solutions, greater emphasis on employee well-being and work-life balance, and expanding urbanization alongside the growth of remote workforces.

The flexible office market size is expected to see rapid growth in the next few years. It will grow to $86.86 billion in 2029 at a compound annual growth rate (CAGR) of 15.8%. The growth projected for the forecast period can be attributed to rising demand for tech-enabled and plug-and-play workspaces, increasing corporate focus on business continuity and resilience, a growing freelance and gig economy workforce, heightened environmental awareness and sustainable workspace trends, and expanding global growth strategies by major corporations. Key trends during this period include advancements in workspace management technologies, integration of hybrid work support systems, technology-driven workspace personalization, developments in virtual office services, and incorporation of wellness and biophilic design elements.

The growing adoption of remote and hybrid work models is expected to drive the expansion of the flexible office market. Remote and hybrid work arrangements allow employees to work fully or partially outside traditional office environments. This rise is fueled by increasing employee demand for flexibility, which supports better work-life balance and enhances productivity. Flexible offices facilitate these work models by offering adaptable, fully equipped workspaces that employees can use as needed, promoting collaboration and efficiency beyond conventional office settings. For example, in February 2023, the UK’s Office for National Statistics reported that between September 2022 and January 2023, 16% of working adults worked exclusively from home, while 28% combined remote work with commuting to their workplace. Thus, the increased adoption of remote and hybrid work models is propelling growth in 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 players 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., and IWG.

North America was the largest region in the flexible office market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in flexible office report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the flexible office market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the professional services sector, particularly in legal, consulting, architectural, and engineering domains. Higher costs for imported technology, software licenses, office equipment, and digital infrastructure have raised operational expenses for firms reliant on global tools and platforms. International consulting projects are facing delays or cost overruns due to increased travel expenses and restricted access to foreign-sourced data and tools. Additionally, clients in manufacturing, construction, and logistics, heavily affected by tariffs are cutting back on outsourced services, squeezing demand for professional expertise. As a result, service providers are reevaluating pricing structures, expanding domestic supplier relationships, and investing in AI-driven solutions to sustain profitability and client engagement amid economic uncertainty.

Flexible office refers to workspace solutions that provide businesses and individuals with adaptable, short-term rental options featuring flexible lease terms. These offices offer fully equipped, ready-to-use environments designed to support dynamic workstyles, including hot-desking, co-working, and private offices. They address evolving needs by enabling scalable space usage without long-term commitments.

The main types of flexible offices include co-working spaces, serviced offices, business centers, and virtual offices. Co-working spaces are shared work environments where individuals or teams from different organizations can work independently or collaboratively, offering flexible and cost-effective office solutions. Service types encompass flexible leasing, membership-based access, pay-as-you-go options, corporate solutions, and virtual office services. Industry verticals served include information technology and telecommunications, media and entertainment, retail, healthcare, and others. Key end-users are freelancers, startups, small and medium enterprises, and large enterprises.

The flexible offices market research report is one of a series of new reports that provides flexible offices market statistics, including the flexible offices industry global market size, regional shares, competitors with the flexible offices market share, detailed flexible offices market segments, market trends, and opportunities, and any further data you may need to thrive in the flexible offices industry. This flexible offices market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

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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