In 2015, if you told someone you were running a coworking space, they might’ve thought you ran a coffee shop with printers.
Today? It’s a whole different world.
Fast forward to 2025, and we’re not just witnessing the rise of coworking. We’re witnessing a redefinition of work itself—and flexible office space is at the center of it all.
In short: the demand is real. And it’s shifting.
A few things stand out.
First, traditional offices just aren’t cutting it anymore.
Companies are trying to pull employees back into the workplace, but that only works if the workplace offers more than a chair and Wi-Fi. People want spaces that energize them, not drain them. They want options—places to focus, to collaborate, to connect. Flex spaces deliver on all of that.
Second, companies need agility.
We’re seeing more hybrid teams, more distributed workforces, more uncertain headcounts. Signing a 10-year lease doesn’t make sense anymore. Flexible space gives organizations room to pivot—up, down, sideways—without locking them into commitments that no longer reflect reality.
Third, the cost of building out an office from scratch is skyrocketing.
In many markets, fit out costs exceed $150 per square foot—before you even add furniture, tech, or amenities. Coworking spaces offer plug-and-play environments that are beautifully designed, already furnished, and ready for teams to get to work.
If you run a coworking space today, you're not just managing a building. You're stewarding a community, enabling productivity, and helping businesses navigate a rapidly evolving work landscape.
And the good news? You have leverage.
The report shows companies are expanding into suburban and secondary markets, looking for high-quality flexible space closer to where their teams actually live. That puts smaller, independent operators in the driver’s seat. In fact, the fastest-growing inventory isn’t in Manhattan or downtown San Francisco—it’s in places like our hometown of Raleigh, Indianapolis, and San Diego.
This is your opportunity to stand out by delivering what big-box providers can’t: genuine hospitality, local knowledge, and curated experiences.
One of the more exciting trends the report mentions and that we are seeing is the rise of landlord-operator partnerships.
With commercial vacancy rates soaring past 30% in some markets, building owners are hungry for solutions. Flexible space operators offer a path forward. Not just as tenants, but as strategic partners.
In many cases, these relationships look less like leases and more like joint ventures. Owners provide the space; operators bring the brand, tech, and community. (Like Cowowrks space management software, which can be white tabled). Everyone wins.
This model is already gaining steam. The report has the average lease terms for flex operators as dropped by 37% over the past five years, giving providers more freedom to experiment, expand, and adapt.
At Coworks, we work with hundreds of flex operators inside and outside the country, from boutique coworking spaces to university innovation hubs. And the pattern is clear:
One operator told me recently, “We're not just leasing desks anymore. We’re giving companies a reason to bring their people together."
That really stuck with me. Because in a world of hybrid work and digital meetings, that in-person connection has never mattered more.
Here’s my take: coworking isn’t just the future of office. It’s the future of workplace strategy.
It offers flexibility without sacrificing culture. Agility without chaos. Hospitality without hierarchy.
And if you’re reading this as a space operator, here’s the best part: you're already ahead. You've built the kind of spaces people want to be in. Now it's time to refine, automate, and grow.
At Coworks, we're proud to be part of that journey. Whether it’s helping you streamline your billing, automate tour bookings, or track meeting room usage, we’re building tools that support the future you’re already creating.
Keep going. The market is with you. And so are we!