At this year’s Global Workspace Association conference, Ben Wright of The Instant Group and Mark Gilbreth, founder and CEO of LiquidSpace, led a candid and data-rich discussion on the evolving state of the flexible workspace industry. Their conversation, equal parts analysis and call to action, painted a picture of an industry entering a new phase of maturity—one where hybrid work is the norm, demand remains strong, and supply is struggling to keep pace.
Hybrid Work Is Here to Stay
Both speakers emphasized that hybrid work has become the default model for companies of all sizes. Wright shared that the majority of firms now operate on some form of opt-in hybrid schedule, noting, “There is no data that says we’re returning to five days a week in the office.” This normalization is stabilizing demand for flexible workspace, creating predictability for an industry once defined by volatility.
However, Wright cautioned that “the explosive post-COVID recovery phase is behind us.” The flex sector has transitioned from exuberant growth to steady, rational expansion. While that may sound less exciting, both agreed it signals a healthier, more sustainable phase—particularly as enterprise clients integrate flexible solutions as a permanent part of their workplace strategies.
Enterprise Demand Is Fueling Growth
Gilbreth offered a deeper look into enterprise adoption, noting that enterprise flex usage now makes up 72% of LiquidSpace’s overall marketplace activity, up from just 20% three years ago. This growth, compounding at roughly 170% annually, underscores that large organizations are now the engine driving the sector.
This shift is reshaping corporate real estate. According to Gilbreth, the average leased footprint among global corporates has contracted by 25%—even as spending on on-demand and hybrid workspace solutions climbs. “Flex has become the first consideration,” he said. “Whenever a lease is up or a new market emerges, companies are starting with flexible options.”
Smaller Markets Are Surging
One of the most striking data points from Wright’s research at Instant: demand is growing fastest in cities and towns with fewer than 100,000 residents. As smaller operators in the audience confirmed, growth is strongest in suburban and secondary markets that previously saw little enterprise activity. This “work-near-home” trend continues to evolve, with new operators and even enterprise clients exploring decentralized, smaller-footprint models.
The Big Players Are Taking Divergent Paths
The discussion also unpacked the differing strategies among major global flex operators:
- IWG is pursuing rapid network expansion, particularly in Class B and C buildings and smaller markets.
- CBRE’s Industrious acquisition is a clear hospitality integration play, embedding flexible offerings into premium Class A portfolios.
- WeWork, despite its past turbulence, is refocusing on technology and operational excellence and is now beginning to expand after a period of focused re-sizing.
- Yardi is quietly developing a tech-first operations platform, leveraging learnings from its WeWork engagement to build better tools for landlords and operators.
“These are not identical models,” Wright reminded attendees. “Each is pursuing a distinct audience and strategy. Understanding those differences helps independent operators position themselves more strategically.”
Supply Constraints Are Emerging
While demand continues to expand, supply growth has slowed. Rising interest rates, reduced landlord investment, and limited venture funding are constraining new development. Wright warned that, based on current trends, independent coworking and flex operators may represent just one-sixth of the total flex market by 2030, down from earlier projections of one-third.
The resulting gap, he said, is being filled by sublease space, spec suites, landlord-operated amenities, and meeting rooms—all categories that overlap with, but don’t always include, traditional coworking. The challenge for operators is to redefine “flex” more broadly and determine how to participate across this expanding landscape.
Data, Platforms, and the Role of AI
Gilbreth emphasized that platforms are becoming the connective tissue between enterprises and operators. Increasingly, companies start their workspace decisions not by choosing a single vendor, but by using a technology platform that aggregates multiple operators and locations. These platforms now extend beyond transactions, providing insights into policy, utilization, and strategy, and even influencing where enterprises deploy team hubs.
AI is amplifying this trend. Both speakers described how artificial intelligence is already analyzing booking patterns, informing workplace strategy, and helping enterprises make smarter, data-driven space decisions. As Gilbreth put it, “AI is helping steer enterprises to use you more.”
A Call for Creativity and Collaboration
Wright closed by acknowledging the current paradox: “We have healthy demand and eager customers—but a landlord landscape that’s not supporting the growth to meet it.” With traditional real estate investment lagging, operators will need creativity, partnerships, and persistence to bridge the gap.
Gilbreth echoed that optimism: “This is an entrepreneurial opportunity. Landlords are slow-moving. The agility and innovation of operators in this room are what will carry the industry forward.”
In Summary
The “state of the flex market” is one of evolution, not explosion. Enterprise adoption is accelerating, smaller markets are thriving, and the definition of “flex” is broadening beyond coworking. Yet, as both speakers made clear, the greatest opportunity lies in collaboration between operators, landlords, and technology platforms to create a more resilient, data-driven, and diversified ecosystem for the next decade of workplace innovation.
This session was summarized by Mike LaRosa at ThisWeekInCoworking.com for the GWA, and the wider global coworking community.
Get plugged into the GWA Member Network, we’d love to have you join the GWA! JOIN TODAY and unlock the full potential of our network.
