Despite major coworking companies dominating headlines, it may be the small, independent operators that permanently change how the workplace functions.
According to a report from The Instant Group, despite the top 10 flexible workspace operators accounting for 36% of the overall U.S. market, smaller companies are able to flourish while their established counterparts continue to chase after enterprise clients.
“Within that pool of diverse, independent operators, we’re seeing this trend towards nichification,” said John Williams, head of marketing at The Instant Group. “They maybe have one or two centers, but they really know their client base, whether it’s a woman-only center, or a center for tech startups or incubators. They can run at a high occupancy rate by catering to that real niche and growing that demand.”
Across the U.S., the report said there has been a 10% year-over-year increase in flex office supply as of March. Although the sector is steadily growing, flex spaces take up less than 4% of office stock in major cities. Nationwide, they only account for less than 1% of total supply.
The report also reveals that the UK continues to lead the flexible office market. According to Williams, this is due in part to British landlords offering longer less and less services than American offices, which boosts demand for more flexibility.