Australia’s flexible workspace sector is entering a new phase of maturity, with operators expanding and diversifying to meet growing demand from businesses seeking agility and choice. According to Colliers’ latest research, The Flex Equation, the market has seen steady growth since 2019, adding an average of 13 new sites annually and increasing offerings by 18% through September 2025.
Hybrid-Flex Leads the Growth
Hybrid-Flex formats, which combine coworking, private offices, and enterprise suites, now account for half of all flexible workspace nationwide, according to Commo. This model is driving the majority of growth as small and medium-sized enterprises, as well as corporate tenants, seek adaptable office solutions.
Metro areas are seeing faster expansion than central business districts, although CBDs continue to attract larger, amenity-rich spaces.
The number of closures also fell sharply in 2024, down 67% from 2023, signaling market stabilization. Operators are focusing on efficiency, scale, and diversification to strengthen their portfolios.
Flexi-Specs Offer Scalability
Colliers identifies a new development in the sector: Flexi-Specs, a flexible lease model built into standard office suites. This approach allows tenants to scale their space at their own pace while providing landlords with long-term tenant engagement.
The model marks a change from competition based purely on amenities to an emphasis on adaptability and product diversification.
Operators Expand and Innovate
Currently, about 200 operators operate nationally. Most (71%) maintained their footprint, 21% expanded, and just 8% contracted. Eleven percent of operators grew their footprint by more than 100%, reflecting strong expansion among leading providers such as The Commons and Hub Australia.
Operators are increasingly diversifying beyond traditional office spaces into sectors like med-tech, F&B, health, childcare, and retail. The integration of coworking, private offices, and enterprise solutions combined with flexible tenure options has strengthened tenant retention, signaling that flexible work models are now a long-term solution rather than a temporary fix.
Emerging Markets and Future Outlook
While Sydney and Melbourne remain the main hubs for flexible work adoption, cities like Adelaide are seeing rapid uptake, particularly among early-stage and growing businesses. With overall office vacancy rates above long-term averages and supply projected to remain constrained, landlords are exploring flexible leasing models as a strategy to unlock underutilized space and generate income during traditional leasing campaigns.
Colliers projects continued growth for flexible workspaces as operators scale and landlords integrate flexible solutions into their portfolios.
The research underscores that flex is no longer a niche option for startups but a strategic component of Australia’s office market, providing tenants with control, choice, and long-term value.
