Coworking is breaking records. Big tech is signing leases again. And banks are quietly repositioning. From Brussels to Silicon Valley, the return-to-office story is more complicated — and more interesting — than you’ve been told.
Industry News
Belgium’s flexible office sector is gaining momentum, with coworking revenues reaching €400 million in 2024 — a 19% increase and a full recovery from the pandemic. Operators are focusing on larger, more efficient spaces and favoring lower-risk models like franchising. As Amazon and Google commit billions in new investments, demand for adaptable, service-rich workplaces is set to grow.
U.S. office vacancy rates declined slightly for the first time since 2019, and leasing is up over 50% from last quarter. Demand is strongest for newer, high-quality spaces, as new construction slows. Major tenants in finance, real estate, and tech are driving activity, with Amazon and Goldman Sachs making long-term commitments. Some major cities are exceeding pre-pandemic leasing levels, led by Silicon Valley and Chicago.
The U.S. office real estate market is beginning to stabilize after years of disruption. Wells Fargo cut its office loan exposure by 18% year-over-year and recorded $107 million in charge-offs in Q3 — down from $184 million a year ago. JPMorgan Chase took a different path, growing its commercial real estate loan book slightly to $146.5 billion. Both banks are adjusting strategies as signs of a slow recovery emerge in the commercial property sector.
Hong Kong’s office leasing surged in Q3, with leasing volume up 25% to 1.3 million square feet and net absorption hitting its highest level since 2018. Vacancy rates dropped to 17.1%, but rents fell slightly by 0.7% quarter-over-quarter, reflecting ongoing market challenges.
Hybrid work is driving a 164% increase in demand for flexible office spaces in smaller U.S. towns and regional markets across the U.K. With 74% of companies worldwide using flexible or hybrid models, businesses are moving away from traditional offices. Large corporations in Asia-Pacific are adopting flexible workspaces with 26+ desks, while cities in EMEA like Abu Dhabi, Zurich, and Frankfurt see rising demand for premium, amenity-rich flex spaces.
By 2026, 3 in 10 companies plan to end remote work, demanding full office attendance. Meanwhile, a Harvard study finds workers would rather take a 25% pay cut than give up remote work, highlighting a growing clash between employer return-to-office mandates and employee demand for flexibility.
Flexible office space remains undervalued by appraisers and lenders despite strong, stable income and high tenant retention. This disconnect limits growth, as many investors hesitate to allocate over 20% of a building to flex. To fix this, industry leaders formed the Workplace Intelligence Network to share data on occupancy, pricing, and churn, aiming to improve valuation transparency. As flex becomes a core real estate strategy, new investment models could unlock more capital and expansion.
Stay Competitive in 2026: 10 Essential Software Integrations for Business Centers and Flexible Workspaces
In 2026, business centers and flexible workspaces must leverage smart software integrations to stay competitive.
Learn about the 10 key integrations that are essential to automate workflows, reduce manual tasks, and provide real-time insights, enabling seamless operations and scalable growth.
Adopting these integrations can transform your workspace management, improve client experience, and drive business success in an increasingly tech-driven environment. Here’s the list.
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.
