Tech, Trends, Workspace Views and UltraSoft News
Industry update: What flexible workspace operators should know right now
As flexible workspace continues to mature, the latest market signals point in the same direction: demand is expanding, but expectations are rising with it.
Startups are using flexible workspace as long-term growth infrastructure. Government departments are relying on shared space to manage office return policies. AI is reshaping demand for commercial real estate. And coworking inventory continues to grow across major U.S. markets.
For operators, the message is clear. Flexible workspace is becoming a bigger part of how companies, institutions and public bodies manage space, people and growth.
Below are the stories worth watching.
1) Flexible workspaces are powering startup growth
New data from WeWork shows how deeply flexible workspace is becoming embedded in the startup economy. Across more than 9,000 startups and SMBs in 146 U.S. locations, 96% have maintained or expanded their workspace footprint after joining.
The trend shows that flexible workspace is no longer being used only as a temporary step before a traditional lease. Startups are using it as scalable infrastructure, especially as teams grow, funding cycles shift and hybrid work becomes part of normal operations.
2) Coworking growth continues across the U.S.
CoworkingCafe data shows the U.S. coworking footprint reached 165.6 million square feet across 9,254 locations as of April. Flexible workspace now represents 2.3% of total leasable office inventory nationwide.
Manhattan remains the largest coworking market, followed by Chicago and Los Angeles. The figures reinforce how flexible workspace is becoming a stable layer within the wider office market rather than a niche product.
3) Federal coworking sites face pressure from office return plans
In Canada, federal coworking sites may be reallocated to support departments preparing for a four-day office return. The government currently operates 12 coworking sites used by 15,000 public servants across 53 departments.
The situation highlights a growing challenge for large organizations: return-to-office policies require space flexibility, but shared workspace capacity can quickly become strained when demand rises.
4) AI could increase demand for commercial real estate
Cushman & Wakefield expects AI to boost U.S. demand for industrial, office and retail space by around 12% over the next decade, adding approximately 330 million square feet compared with pre-AI forecasts.
For offices, demand is expected to concentrate around high-quality, adaptable space. This reinforces a trend already visible across the market: occupiers are becoming more selective about where they work and what those spaces can support.
5) AI leasing is reviving major office markets
CBRE research shows technology companies accounted for nearly 23% of U.S. office leasing activity in Q1 2026, with AI firms driving demand in cities such as San Francisco, Silicon Valley, Manhattan, Boston and Seattle.
Since 2019, AI companies have leased around 21 million square feet across San Francisco and Silicon Valley alone. This suggests AI is not reducing the need for physical workspace in key innovation markets—it is reshaping where and how demand appears.
Blog highlight: why the best flexible workspaces are becoming hospitality-led
This month, we looked at one of the biggest shifts in the flexible workspace market: the move toward hospitality-led experiences.
As occupiers expect better service, wellness-focused design, smoother bookings and more consistent support, operators need stronger systems behind the scenes. In the blog, we explain why experience is becoming a competitive advantage and how technology helps deliver it at scale.
What this means for operators
Flexible workspace is becoming a core part of real estate strategy for startups, enterprises and public sector organizations. At the same time, AI-driven growth and return-to-office pressures are increasing demand for high-quality, adaptable spaces.
For operators, this creates opportunity, but also raises the bar. Growth depends on more than available space. It requires consistent service, reliable operations, accurate billing, clear reporting and systems that can scale.
UltraSoftBIS Cloud helps operators of flexible workspaces, serviced offices, managed spaces and business centres bring sales, bookings, billing and reporting into one intelligent platform.
Explore UltraSoftBIS Cloud to see how connected operations support better workspace experiences.
Catch you in the next issue,
The UltraSoftBIS Team
