The flexible workspace sector in North America is entering a new chapter—one defined not by rapid disruption, but by strategic recalibration. As volatility gives way to steadier, more intentional growth, a new picture is emerging: demand is recovering, evolving, and even outpacing supply.
The flexible workspace sector in North America is entering a new chapter—one defined not by rapid disruption, but by strategic recalibration. As volatility gives way to steadier, more intentional growth, a new picture is emerging: demand is recovering, evolving, and even outpacing supply.
According to our newest report, “Five Years After Covid”, demand for flexible workspaces across the U.S. and Canada is now 19% higher than it was pre-pandemic. And while supply has grown by 8% over the same period, it is not keeping pace, creating new opportunities for operators to deliver where the market needs them most.
Larger Requirements, Longer Commitments
One clear signal of maturity in the market: companies are committing to more. Since 2022, the average size of flexible workspace requirements has grown 25%, while average term lengths have extended 10% since 2019. Larger occupiers are increasingly leaning into flex as a long-term solution. Plus, with traditional real estate constrained by high interest rates and reduced investment activity, agility is proving essential.
“Operators who adopt leaner, asset-light models and maximize underutilized space will be best positioned for the future,” says Ben Wright, Global Head of Partnerships at The Instant Group. “But it’s not just about cost; it's about understanding what occupiers want now.”
New Work Hubs: Suburban and Lifestyle Cities on the Rise
Today’s workers want flexibility not just in how they work, but where. That’s why coworking and on-demand space is booming outside traditional urban cores, especially in lifestyle cities and suburban areas.
In the U.S. Southeast, cities like Miami, Raleigh, and Nashville are seeing rapid growth in demand as remote workers seek high-quality space closer to home.
In some cases, demand has growth so quickly, that supply can’t keep up, creating pockets of opportunities for operators looking to expand. For example:
- Raleigh: Supply is up 14% from 2019, but demand has surged 144%
- Miami: Supply has dipped slightly (-3%), while demand is up 153%
- Seattle: Supply has grown 8% since 2019—but demand rose 57%, leaving the city undersupplied
Even in major metro areas, demand is shifting outward. In the suburbs of New York City, for instance, demand grew 38% in Fairfield County, CT, and 33% in Morris County, NJ between 2019 and 2024.
Flex Gets Smarter: Products, Experience, and Agility
Operators are meeting this evolving demand with more varied and experience-rich offerings. Day passes, hybrid memberships, premium amenities, and tech-enabled booking systems are no longer optional—they’re central to winning and retaining members. Searches for meeting rooms alone have jumped 79% in the past year, signaling strong interest in on-demand, high-convenience solutions.
As the market matures, tiered memberships, bundled services, and short-term corporate packages are proving to be smart ways for operators to diversify revenue without major upfront investments.
A Flight to Quality, But a Supply Gap at the Top
While demand for premium flex space is rising, inventory at the high end isn’t keeping pace. That’s widening the gap between average and premium offerings. Operators who can deliver high-experience spaces, especially in underserved markets, stand to benefit as more enterprise clients look for quality flex options they can rely on.
What’s Next?
The flexible workspace sector in the U.S. and Canada has evolved to become an essential part of the new office landscape. And while the post-pandemic boom may be stabilizing, the market is becoming more intentional, more diversified, and more opportunity-rich than ever.
To dive deeper into the numbers and uncover where the next big opportunities lie, download the full report here.
