EMEA flexible office market sees significant expansion

 

According to a recent report, the flexible office market in EMEA grew by over 348,000 sqm in 2024, representing a 4.4% year-on-year increase. This growth pushes the total flexible office inventory across 46 key EMEA markets to an impressive 8.3 million sqm. Expansion was observed across major Tier 1 cities and emerging regional hubs alike, indicating a broad-based positive trend.

 

Shifting demands drive market evolution

 

The flexible office sector is no longer solely defined by the co-working trend. It is rapidly transforming into a sophisticated, strategic pillar of corporate real estate. The report highlights a clear shift in demand towards premium, agile, and 'managed' enterprise-grade solutions. Businesses are increasingly seeking spaces that offer high levels of customisation, control, privacy, and integrated services, moving beyond traditional co-working models to more tailored, flexible arrangements.

 

Increased market activity and new opportunities

 

Market activity hit a five-year high in 2024, with 283 new flex centres opening their doors. Simultaneously, closures of existing centres fell by 15%, suggesting increased market stability and operator success. The sector also saw the entry of over 80 new providers, enhancing competition and offering businesses a wider array of choices. Leasing by flexible operators accounted for a notable 3.6% of total office take-up, demonstrating the sector's growing influence.

 

Preferred locations and building trends

 

The trend shows a strong preference for centrally located buildings with character, often driving the adaptive reuse of existing properties. This focus aligns with businesses' desire for convenient, well-connected locations that offer unique environments for their teams.

 

Navigating challenges and future outlook

 

While the market is booming, operators face challenges including potential saturation, consolidation, and rising expectations for quality and service. Success in this environment requires differentiation through superior offerings and service levels. Looking ahead, the constrained pipeline for traditional office development is expected to further accelerate demand for flexible workspace solutions, positioning the sector for continued growth and innovation.

 

For businesses seeking office space, the expanding and evolving flexible market in EMEA presents diverse options, from high-service managed offices to customisable enterprise solutions, offering greater agility and strategic value than ever before.

 

Source: colliers.com