Flexible workspace has officially entered the mainstream of corporate real estate strategy. And that’s big news for coworking and flex-space operators.
A new Commercial Observer report reveals that U.S. flexible office inventory is growing fast—especially in suburban markets, Sun Belt metros, and with enterprise clients who want agility without long-term commitment.
As we look ahead to 2026, the message is clear: flexible work is here to stay, and operators who can meet rising expectations are poised to win.
Flex space is growing faster than ever
The numbers don’t lie. The top 50 flex-space providers now account for 2.6% of total U.S. office inventory, up from 2.3% just a year ago. That’s an 11% year-over-year increase, and a clear signal that flexible workspaces are no longer seen as stopgap solutions—they’re now part of the long-term strategy for many occupiers.
Even more telling: 58% of corporate occupiers now use flexible space in some form. That’s more than half the market.
For coworking space operators, this growing demand isn’t just encouraging—it’s a call to level up. The bar is higher, and operators who can provide premium, scalable, tech-enabled experiences will stand out.
Lease terms are getting shorter. Your offerings should too.
One of the most eye-opening stats from the report: average lease terms for flex providers dropped from 121 months in 2020 to 77 months in 2025. That’s a 37% decline.
What does that mean for your space?
Flexibility is built into your layout, your pricing, and your software. Members want options like monthly desks, day passes, part-time offices, and they want to be able to scale up or down quickly. Coworking already has all of that.
If your tools (or your team) are stuck in spreadsheets and manual workflows, now’s the time to upgrade. The more agile your operations, the more appealing your space becomes.
Suburban and secondary markets are surging
It’s not just the big cities driving this growth. In fact, tertiary markets grew nearly 10% year-over-year as of Q2 2025. One Sun Belt metro saw a 27% increase in flexible office inventory, which now represents 3.5% of its total office space.
Miami leads the pack with flex space accounting for 7.6% of total inventory—one of the highest rates in the country.
For operators, this is an open door. If you’re in a growing region or considering expansion, these numbers show that demand isn’t limited to major downtowns. Hybrid work has decentralized the office—and your space can meet people where they are.
Landlords are (finally) getting in on the game
Another trend to watch: property owners are no longer just leasing space to flex operators. Increasingly, they’re entering joint ventures with flex brands or launching their own flexible offerings in partnership with operators.
If you haven’t already, it may be time to rethink your landlord relationships. Are there opportunities to partner instead of just lease? Could your brand bring value to their building—and improve occupancy across the board?
Approaching landlords as collaborators (not just gatekeepers) could open up new expansion opportunities with less upfront risk.
What this all means for coworking operators
Let’s connect the dots. You are already doing most of this, but here is why CRE and landlords care.
- Design for flexibility: With shorter commitments, they need your need modular space and flexible pricing.
- Serve enterprise clients: They’re using flex space more than ever—but expect more than just desks.
- Look beyond downtowns: Suburbs and second-tier markets are growing faster than big cities.
- Partner when possible: Joint ventures with landlords can reduce risk and increase visibility.
- Invest in your operations: Software, automation, and great service are now table stakes.
TL;DR: CRE and landlords are catching onto coworking
2026 is shaping up to be a landmark year for flexible workspace. With growing adoption, rising expectations, and new market opportunities, there’s never been a better time to refine your operations and grow your brand.
At Coworks, we help coworking and flex-space operators streamline day-to-day management so you can focus on delivering an exceptional member experience. From automated billing and CRM to visitor check-ins and room bookings, we make running your space simpler.
