Flexible Office Rapidly Maturing into an Established and Attractive Asset Class

December 10, 2025

The U.S. coworking sector continues its rapid expansion, solidifying flexible office as one of the fastest-growing asset types in commercial real estate. Between 2023 and 2025, the market grew 23%, driven by population inflows into high-growth metros, resilient job creation, and the long-term shift toward hybrid and remote work.

As companies rethink how much space they need—and what kind of space supports productivity and culture—coworking operators are stepping in to fill the gap. The result: increased absorption, diversified tenant profiles, and stable occupancy rates across many metros.

Spotlight Market: Atlanta

Atlanta is emerging as a leader in flexible office growth.

• The metro added three new coworking locations in 2025, bringing its total to 116 facilities across the region.

• With 70,000+ remote workers, the city continues to support some of the strongest hybrid adoption rates in the Southeast.

• Corporate anchors like Mercedes-Benz, PrizePicks, NCR, and a maturing fintech and entertainment ecosystem are further fueling demand for turnkey, scalable workspace options.

For operators, this creates an environment where well-located, amenity-rich spaces can outperform traditional office from both a leasing and revenue standpoint.

For investors and landlords, it represents an opportunity to reposition or diversify building income through flexible office partnerships, management agreements, or operating joint ventures.

Why Flexible Office Is Growing In CRE Strategy

1. Portfolio Agility Corporate occupiers continue to trim long-term lease liabilities in favor of shorter, more adaptable commitments. Coworking fills that need without sacrificing quality or amenities.

2. Higher Revenue Per Square Foot Top-tier coworking models often command a premium due to bundled services, conference rooms, and community programming.

3. Stabilization Through Diversification Rather than relying on a single anchor tenant, coworking spreads income across dozens—or hundreds—of small and mid-size users, creating more resilient cash flow.

4. Adaptive Reuse & Value Creation Older office assets, especially Class B, are being repositioned into shared work environments to improve occupancy and drive new traffic to mixed-use districts.

What This Means for Owners, Developers, and Investors

• Landlords: Consider flexible workspace partnerships to drive occupancy, activate ground floors, or reposition underperforming space.

• Developers: Build-in coworking or flex suites as a standard amenity to increase pre-leasing and attract modern tenants.

• Investors: The expanding operator landscape and evolving management models signal that flexible office is on track to become a standardized, investable asset category over the next decade.

• Public-sector + Economic Development Stakeholders: Coworking and flex office support entrepreneurship, talent attraction, and workforce mobility—all critical to metro-level competitiveness.

Bottom Line

Flexible office is no longer a niche trend—it’s rapidly maturing into an established and attractive asset class, reshaping how space is planned, financed, and delivered. As cities like Atlanta continue to grow, coworking will play a critical role in meeting demand with scalable, modern workspace solutions.

If you’d like support assessing how flexible office trends may impact the value, highest and best use, or income potential of your assets, our appraisal team can provide detailed market analyses and valuation-driven insights to guide your next steps.