Tech, Trends, Workspace Views and UltraSoft News
Industry update: What flexible workspace operators should know right now
As operators seek new avenues for growth and businesses re-evaluate what they need from an office, the flexible workspace sector is in flux. The market is being shaped by a host of factors, from consolidation and managed offices to new technology and shifts in demand.
Below are some of the most recent developments.
Industry News
1) Uneven Conditions Across European Office Markets
Trends in Europe vary by location and the kind of space on offer. According to Colliers, EMEA office vacancy was at 9.5% by the close of Q2, even as prime rents rose 6.6% over the year. There is also renewed investor interest in top-tier buildings or those with room for improvement.
2) AI Companies Are Creating New Office Demand Across Europe
The role of AI firms as a driver of office demand in Europe is on the rise. According to fresh research by Colliers, London, Paris and Berlin have established themselves as the continent’s pre-eminent AI hubs. It is not uncommon for some of these rapidly expanding operations to use serviced or flexible arrangements before taking on larger, more permanent premises. In the second quarter of 2026, AI companies accounted for 19% of all office take-up, up from 10% in the previous quarter.
3) AI-Led Sectors Drive Surging Workspace Demand in London
City Tower in EC2 is seeing strong demand from software and AI-led businesses, with Great Portland Estates (GPE) having pre-let more than 4,300 sq ft of its Fully Managed workspace and another floor currently under offer. More than 20,000 sq ft has already been let at the building this financial year.
The latest phase will add 38,000 sq ft to GPE’s Fully Managed portfolio, taking the building’s total Flex space to around 80,000 sq ft and highlighting the growing role of flexible workspace in supporting fast-growing AI and technology businesses.
4) Industrious and GANMI Supercharge San Diego’s Innovation Hub with Major Core Columbia Expansion
Demand from up-and-coming companies in life sciences, defence and AI has prompted Industrious to add some 27,000 sq ft to its Core Columbia site in San Diego, bringing the total to roughly 54,000 sq ft.
5) Blog: How AI Is Set to Influence the Flexible Workspace
From space planning to the member experience, AI is reshaping how operators run their locations and how businesses view office space. We have put together a piece on our blog that covers the current and future effects of AI on these operations.
What This Means for Operators
These are selective times in the flexible workspace market. While the appetite for adaptable space remains, it is incumbent on operators to be deliberate in their choice of offerings and where to make an expansion. Having the proper technology on hand will go a long way in managing one’s space efficiently as the market evolves.
We will be in touch in the next issue.
