2026: The Year of the "Professionalized" Flex Space
As we move through January 2026, the flexible workspace industry is shedding its "startup" image in favor of high-stakes corporate integration and financial maturity. From major leadership shakeups at The Instant Group to the rise of "Super-Hubs" in Europe, the message is clear: flexibility is no longer a perk—it is a core business strategy.
In this edition, we dive into the US market's strongest absorption since 2019, the regulatory "stealth tax" threatening UK operators, and how AI is moving from a buzzword to an "invisible concierge" that handles everything from lead matching to automated billing.
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Industry News
The US Office Comeback: The US has reported its strongest quarter of occupancy gains since 2019. Despite stagnant job growth, many occupiers are committing to additional space in anticipation of higher office attendance throughout the year.
UK Business Rates Crisis: The Valuation Office Agency (VOA) is under fire for a "stealth tax" as it moves to assess serviced offices as single entities rather than individual suites for the April 2026 revaluation. This change threatens to strip sub-tenants of Small Business Rates Relief across England and Wales.
Consolidation at the Top: Convene Hospitality Group officially acquired the NeueHouse brand and its flagship Madison Square location out of bankruptcy on January 6th. This move highlights a consolidation trend where institutional-grade operators are absorbing niche lifestyle brands.
The Management Agreement Takeover: Management agreements (MAs) are officially the "new default". Data from Workthere and Spaces to Places (Jan 2026) shows MAs hit a record 53% of all new flex deals in late 2025, with predictions they will exceed 55% this year.
Adaptive Reuse in Europe: The City of Lyon has confirmed a project to transform the 19th-century Saint-Bernard Church into an 1,800-sqm mixed-use hub. The site will feature coworking, an indoor climbing wall, and dining, marking a peak in the "lifestyle destination" trend.
Activist Pressure on REITs: Hedge fund Saba Capital launched a campaign on January 14th urging Workspace Group (WKP) to enter a managed wind-down. Saba argues that the REIT’s 45% discount to net asset value requires a strategic sale of assets to return capital to shareholders.
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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