UltraSoftBIS Cloud

Newsletter #09 - Tariffs, Trade Tensions & the Flex Office Surge: Why 2025 Is All About Agility

By A Baker, Marketing @ UltraSoft.Tech   Published on May 01, 2025
showcasing modern, adaptable workspaces that reflect the shift toward operational real estate and agile office models—perfect for visualizing the rise of coworking and hybrid environments

Tech, Trends, Workspace Views and UltraSoft News

 


 

U.S. Tariffs + Economic Uncertainty = Hesitation Around Long-Term Leases

Rising tariffs and political unpredictability are driving companies to avoid long-term commitments, making flexible office space more attractive than ever. As the cost of construction materials surges (due to tariffs on steel, aluminum, and lumber), traditional office developments are slowing, putting pressure on supply. In contrast, flexible office providers can adapt quickly, offering ready-to-go space with less overhead and shorter leases, which is exactly what cautious businesses want in 2025.

🇬🇧 UK Concerns Over Trade + Sluggish Growth = Rise in Remote and Hybrid Teams

The UK’s economic forecast has been dampened by global trade concerns, slowing growth, and inflation worries. As businesses look to cut costs while staying agile, coworking and private office spaces are becoming the go-to model, allowing teams to scale space up or down without major capital investment.

Additionally, with uncertainty over the future of trade impacting hiring and business growth, companies are looking for low-risk, scalable workspace options — again, favoring flex.

🏢 Investor Strategy Shift = More Focus on “Operational Real Estate”

Investors, both in the U.S. and UK, are turning toward income-producing, operational real estate assets, like flexible office portfolios. With the volatility in global markets, they want assets that generate stable, recurring revenue and aren't tied to multi-decade leases.

This is creating momentum behind coworking brands and operators that can deliver strong occupancy, localized market knowledge, and asset-light models.

If you're in the flex office space world (whether you're operating coworking hubs, private office suites, or virtual offices) now is the time to position yourself as the scalable, flexible, future-proof solution.

 


 

Coworking Chaos? Here’s How to Pick the Right Software Before It Costs You

The coworking boom isn’t slowing down, but clunky, outdated systems are slowing operators way down. From missed bookings to billing nightmares, the wrong software doesn’t just waste time; it chips away at your member experience and your revenue. 

Whether you're managing a boutique shared office or scaling across cities, finding software that actually understands your workflow is key. This week, we break down what truly matters: the features that future-proof your space, eliminate operational headaches, and give your members a polished, professional experience from the moment they log in. If you’ve outgrown spreadsheets and scattered tools, this is your sign. Read the article to figure out exactly what you need. Read the article

 


 

AI Takes Over Pre-Sales: UltraSoftBIS and Orchestry Launch Game-Changing Workspace Automation

UltraSoftBIS and Orchestry have joined forces to bring AI-powered automation to the flexible workspace industry.

With real-time lead capture, smart qualification, and AI-driven chat, operators can now fully automate pre-sales—from inquiry to viewing—without lifting a finger.

This integration connects Orchestry AI agents with UltraSoftBIS’ robust CRM, streamlining both direct and broker channels to boost conversions and free up sales teams for higher-value work.

A smarter, faster way to match clients with the right space is here.

Read our press release

 


 

Industry News

The US has hinted at a potential trade deal with the UK, suggesting it could be simpler than with the EU. Talks focus more on tech and AI cooperation than a full trade agreement. However, new 10% US tariffs on UK goods may complicate progress.

As President Trump’s tariffs spark economic uncertainty, WeWork CEO John Santora sees opportunity. "Who’s prepared to commit to a 10- or 15-year lease with $50 million or $100 million spend?" he asked. With businesses hesitant to lock into long-term leases, the demand for flexible, short-term office spaces is clearly rising. 

A new report signals hidden trouble in the U.S. job market. While unemployment remains low, hiring has slowed and jobless spells are getting longer—trends that have preceded past recessions. With rising tariffs adding pressure, businesses may face weaker demand and a tightening labor pool, while workers could see fewer opportunities ahead.

The UK job market showed fresh signs of strain in March, with the biggest rise in jobseekers in over four years and a continued drop in permanent hiring. A surge in available workers, driven by layoffs and fewer openings, is raising concerns for both businesses and the workforce. New payroll taxes and global trade tensions are adding uncertainty, making it harder for firms to plan hiring and pass on costs—just as wage growth remains weak and consumer confidence stalls.

Office construction in the U.S. is hitting a major slump, with just 20.7 million square feet under development at the end of Q1 2025, down from 24.8 million. Developers are only moving forward with projects if they can lock in big tenants first. The slowdown could actually boost demand for premium office spaces, as businesses chase top-tier, high-end buildings in a weak market.

Over 13,000 commercial properties in England and Wales still have poor energy ratings, making them unleaseable. Progress toward the 2030 energy target is slowing, especially in offices. To meet the goal, upgrades must double. 

If you have any news (new coworking space openings, new offerings, etc.) forward it to us at news@ultrasoftbis.com

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