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Newsletter #10 - UK Flex Workspace Soars 32% While AI Rewrites the Coworking Playbook

By A Baker, Marketing @ UltraSoft.Tech   Published on May 23, 2025

Tech, Trends, Workspace Views and UltraSoft News


Across the globe, we’re seeing economic forces at play that directly influence demand for flexible workspaces. 

In the UK, flex office supply surged 32% in Q1 2025, with managed offices leading the way. This growth is reshaping the market, as London retains 75% of the supply, while cities like Birmingham and Manchester experience contrasting trends in availability and pricing.

Meanwhile, innovation in coworking is taking a high-tech turn. AI agents are quietly transforming operations by automating lead generation, client onboarding, and customer support. Some operators are now leveraging this technology to enhance sales and streamline response times, offering a glimpse into the future of workspace management.

Across the Atlantic, hybrid work continues to dominate in the U.S., with 67% of companies now offering flexible work options. And with this, the demand for flexible workspaces is still very much alive, as companies large and small seek agile, cost-effective solutions in the face of uncertain economic times.

The pressure on operators to remain competitive, adaptable, and responsive is higher than ever. Success in today’s market comes to those who embrace automation, grow in high-demand areas, and align with workforce expectations using the right tools and strategies.

This week we’re bringing you insights into the current state of the coworking market, top trends, and the latest updates to keep you informed and ahead. Whether you’re an operator seeking to optimize your space or simply looking to stay in the know, we’ve got you covered. Plus, don’t miss our special offer: Sign up for a demo between now and July 1st to get a 6-month fee license!


Your Coworking Software Is Costing You. Here’s How to Fix It

The coworking industry is extremely prosperous at the moment, but many operators are stuck with software that just can’t keep up. Booking errors, billing confusion, and clunky member experiences are signs your tools are holding you back.

If you’re juggling spreadsheets or piecing together mismatched platforms, you’re not alone. It’s essential to employ software that scales with your space, streamlines your ops, and actually works the way coworking works now. Before another missed invoice or member complaint, take a look at what’s really worth investing in.

Read our article


Industry News

UK flex office supply climbed 32% year-on-year in Q1 2025, reaching 8.6M sq ft. Managed offices led with a 111% surge, pulling median desk rates down 1.2% to £500. London still holds 75% of supply, with availability up 39%. Birmingham’s shrinking stock sent prices up 23%, while Manchester added 17.7% more space and saw a 5.3% price rise. 

AI agents are quietly taking over key roles in coworking—handling leads, client onboarding, and support without scripts or sleep. Unlike old-school automation, these agents think, adapt, and collaborate. Operators like Boutique, Orega and Work.life are already using them to boost sales and slash response times. 

​​Despite the headlines, most U.S. companies aren’t going fully back to the office. Only one-third require full-time attendance, and hybrid setups still dominate. According to the Q2 2025 Flex Report, 67% of U.S. companies now offer some form of location flexibility. Coworking operators, take note: hybrid work isn’t fading, it’s getting more strategic.

Africa has officially topped 500 verified coworking spaces, with Lagos, Nairobi, and Cairo in the lead. As remote work becomes normalized and startup ecosystems thrive, cities across the continent are embracing flexible workspaces. Global players like Regus and local hubs like Impact Hub are expanding fast, while private investors pour into the sector. Coworking is no longer just for capitals, as Africa’s mid-sized cities are stepping into the spotlight.

Immigrants are keeping the euro zone economy afloat. A new ECB study found foreign workers made up half of labor force growth since the pandemic, easing shortages and stepping into more skilled roles. As Europe’s population shrinks and ages, migrant labor is offsetting economic decline—even as anti-immigration politics rise. 

SHRM’s 2025 report warns that 19 million U.S. jobs could be lost to automation, with business, finance, and admin roles most at risk. As AI reshapes industries, SHRM urges companies to combine tech with human skill and invest in reskilling to help workers stay relevant. 

International Workplace Group (IWG) is planning a major India expansion. With 105 centres already operating and 40 more set to open in 2025, IWG aims to become the country’s third-largest coworking provider in the next 3–5 years. Regional CEO Marc Descrozaille says India could soon be a top-three global market, with a long-term goal of adding 300 new locations across the country.

German coworking spaces are thriving, with over 50% of operators now reporting a positive outlook (up from just 29% in 2021). Occupancy in major cities has hit 70%, signaling a strong recovery and growing demand post-pandemic.

New Zealand's coworking market is flourishing, defying tough economic conditions with a 17.6% growth over the past five years. Despite some slowdown, 40% of providers are still gearing up for expansion—proving that demand for flexible workspaces is stronger than ever.

IWG is seeing record U.S. demand, with March marking their highest sales month ever. Despite macroeconomic challenges (like tariffs), the company posted a 2% revenue increase and expanded its buyback program to $100 million, reaffirming its positive outlook.


Who is UltraSoftBIS?

UltraSoftBIS is an all-in-one software for business centre operators, coworking spaces, and flexible workplaces. It automates key tasks like sales, proposals, license generation, e-signatures, inventory management, reservations, billing, and reporting in a single integrated system. 

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