The Emergence of Enterprise: Why Corporates Are Driving Flex Demand More than Ever
Flexible workspace operators need to decide how they want to serve the enterprise.
The story of flexible workspace is no longer about small startups or freelancers — it’s about enterprise-scale requirements and longer-term commitments. Data from The Instant Group reveals that since 2022, the average size of space requirements has increased by 25%, a powerful signal that large corporations are adopting flex as a fundamental component of their real estate strategy.
Rather than treating flexible space as a temporary or experimental solution, enterprises are now using it to navigate today’s complex demands for agility, scalability, and cost efficiency. The pandemic-induced uncertainty has shifted into more deliberate planning, with companies recalibrating portfolios and optimizing footprints.
Driving Forces Behind Enterprise Flex Demand
Hybrid Workforce Strategy: Large firms are balancing remote and in-office work by adopting multi-location, flexible office models that provide employees choice and support collaboration.
Cost Control in a High-Interest Environment: With traditional commercial leases becoming costlier and less flexible, flex space offers a scalable alternative without long-term capital commitments.
Longer Commitments: The average lease term for flexible space has grown by 10% since 2019, indicating growing confidence among corporate occupiers in flex as a strategic, long-term workplace solution.
Notably, transaction sizes have skyrocketed in some major markets. From Q1 2024 to Q1 2025, average deal sizes surged in San Francisco and New York City, two of the largest and most dynamic real estate markets in the world.
Where Are Enterprises Concentrating?
Large corporate occupiers are also increasingly drawn to suburban and secondary markets that provide hybrid-friendly, local workspace options for employees, aligning with broader workforce migration trends.
As organizations become more sophisticated about flex, they demand premium spaces with superior amenities and services, which has contributed to the widening pricing gap between premium and standard offerings. Operators who can combine upscale environments with flexible, on-demand services are best positioned to win 2.
Implications for Flexible Workspace Operators
Enterprise adoption means that flex providers must adapt their models to accommodate larger portfolios and longer contracts while maintaining high service levels and agile operations.
Further, many corporates are looking for large networks of spaces, so that they can centralize billing, maintain a standard of quality, and more. This could drive adoption for major coworking marketplaces, consolidation of operators, and more.
Meanwhile, the need to optimize existing assets rather than expand rapidly is driving many operators to embrace lean, asset-light business models that improve efficiency and leverage technology for superior end-user experiences.
The Road Ahead
Enterprise demand is fueling a new wave of maturity for the flexible workspace sector. Strategic operators that deliver premium, scalable solutions and focus on retention and upselling through tiered memberships and bundled corporate packages will lead the market’s evolution.
Source: Instant Group US and Canada Market Report, 2025