US Flexible Office Market Report 2024
Demand for flexible workspaces surged, particularly for private office solutions, indicating a preference for dedicated environments within a flexible framework. The supply side responded with substantial growth in flexible workspace locations, primarily within the serviced and coworking categories.
Tenant preferences leaned toward amenities such as 24-hour access, advanced technology infrastructure, and a rising emphasis on sustainability and well-being. Regional performance varied across the US, with the South and Midwest showing strong growth.
While the market presents promising opportunities, challenges such as data security and the potential for oversupply in certain areas warrant attention.
The future outlook for the US flexible office market remains positive, fueled by the continued adoption of hybrid work models, a growing emphasis on employee well-being, and the integration of advanced technologies.
The Rise of Flexible Offices in the US
The US flexible workspace market in 2024 represents a dynamic and evolving sector within the broader commercial real estate market. Flexible office spaces are designed to provide greater agility and shorter-term commitments than traditional office leases.
US flexible offices have different formats, including coworking spaces, which offer shared working environments and community features; serviced offices, which provide private, fully equipped office suites with administrative support; virtual offices, which offer business addresses and communication services without dedicated physical space; and hybrid workspaces, which blend elements of these different types to cater to specific needs.
This diversity allows the flexible workspace market to attract freelancers, startups, small and medium-sized enterprises (SMEs), and large corporations seeking adaptable and cost-effective solutions.
Data from Office Hub’s 2024 Co-Stats Report
The US Market Size and Growth Analysis
The valuation of the US flexible office market in 2024 varies across research firms, with estimates ranging from $10 billion to $30 billion, reflecting differences in scope and methodology.
The US flexible workspace market demonstrated strong growth in 2024. The Instant Group reported a 13% increase in demand for flexible offices in the first half of 2024 compared to the same period in 2023.
Additionally, CommercialEdge noted a 25% yearly increase in the total national coworking inventory by February 2025.
Long-term projections consistently forecast substantial growth for the US flexible workspace market. Precedence Research anticipates the US market to grow at a CAGR of 17.44% from 2025 to 2034, reaching an estimated value of $52.58 billion by 2034. Fortune Business Insights also predicts strong growth for the US flexible office market, which is expected to reach $31.75 billion by 2032.
In 2024, Market Research Future reported that coworking spaces dominated the US market, with a valuation of $22.01 billion, which is expected to grow to $82.12 billion by 2034. Meanwhile, dedicated spaces held the largest market share, while the all-access segment is expected to experience the fastest growth rate.
2024 Supply of Flexible Offices in the US
Data from Office Hub’s 2024 Co-Stats Report
Of these, 3,364 were categorized as serviced offices and coworking spaces, while 115 locations were designated as sublet and shared workspaces.
Data from Office Hub’s 2024 Co-Stats Report
Regarding building grade, a significant portion of the available flexible office spaces is located in Grade A buildings, accounting for 54.6% of the total listings. Grade B buildings represent 40.2% of the supply, while only 5.2% of listings are identified in Grade C buildings. This distribution suggests a market leaning toward higher-quality workspace environments.
Serviced offices and coworking spaces constituted the largest segment of the flexible office supply, with 3364 locations available. The average floor space size for these spaces was 2500 square meters.
In contrast, although fewer in number, sublet and shared workspaces had a larger average floor space of 3,032 square meters. This difference in average size could indicate that sublet and shared offices serve businesses with more extensive space needs compared to the more numerous serviced offices and coworking spaces, which could attract a wider variety of smaller teams and individuals.
Average Desk Price Estimations
The average desk price varies considerably depending on the type of flexible workspace. According to Office Hub’s Listings Summary, managed spaces commanded the highest average desk price at $986, followed by enterprise suites at $879 and private offices at $769.
Coworking desks had an average price of $722, shared offices were priced at $600, and sublet offices at $507. Virtual offices were the most affordable option with an average desk price of $158.
These figures provide a detailed breakdown compared to broader market averages. For instance, The Instant Group reported an average flex desk rate of $459 per month in the first half of 2024, a slight increase from $455 in the same period of 2023.
CoworkingCafe noted a national median price of $149 for open workspaces and $300 for dedicated desks in Q4 2024. Coworking Insights added that fluctuations in dedicated desk prices were observed across the year, with one report indicating a decrease from $322 in Q4 2023 to $309 in Q1 2024.
Data from Office Hub’s 2024 Co-Stats Report
Supply Growth Factors
Several factors have contributed to the growth in the supply of flexible workspaces in the US. The increasing adoption of hybrid work models is a primary cause as companies seek flexible solutions to accommodate remote and in-office work arrangements.
The rise of startups and freelancers, often with budget constraints, fueled the demand for cost-effective, flexible workspace options. Landlords also recognized the value of incorporating flexible office options into their portfolios to attract a wider range of tenants.
This led to the expansion of flexible workspaces into suburban and tertiary markets, catering to a more decentralized workforce. Mergers and acquisitions among flexible workspace providers also contributed to the evolving supply landscape.
The supply of coworking spaces, a significant component of the flexible office market, showed consistent growth throughout 2024.
|
Quarter |
Increase in Number of Spaces |
Growth Rate |
Increase in Square Footage |
Growth Rate |
Source |
|
Q1 2024 |
346 |
6% |
N/A |
3% |
CoworkingCafe (via Coworking Insights) |
|
Q2 2024 |
444 |
7% |
2.9 million sq ft |
2% |
CoworkingCafe (via Coworking Insights) |
|
Q3 2024 |
527 |
7% |
~5 million sq ft |
5% |
CoworkingCafe |
|
Q4 2024 |
154 |
2% |
~3 million sq ft |
3% |
CoworkingCafe |
This table illustrates a steady upward trend in the supply of coworking spaces, both in terms of the number of locations and the total square footage, throughout 2024. The significant year-over-year growth further emphasizes the expanding footprint of this flexible workspace model in the US market.
2024 Demand for Flexible Offices in the US
The demand for flexible offices in the United States also experienced a substantial surge in 2024. Office Hub reported a remarkable 136.5% annual growth in inquiries from companies seeking flexible workspace solutions. This significant increase underscores the strong appetite for alternatives to traditional office leases.
Jumping on this trend, The Instant Group indicated a 13% rise in flexible office demand in 2024 compared to the previous year, with a 13% increase observed in the first half of 2024 compared to the same period in 2023.
Analysis of preferred workspace types reveals a clear preference for private offices among individuals seeking flexible solutions. Office Hub data showed that 86% of inquiries preferred private offices.
Virtual offices were the second most sought-after type at 10%, followed by coworking/dedicated Desks at 7%. Meanwhile, conventional/sublet and enterprise suite options accounted for 1% of the preferred workspace types.
This strong inclination toward private offices suggested that while flexibility is a key driver, businesses and individuals prioritized dedicated and private work environments.
Data from Office Hub’s 2024 Co-Stats Report
The average desired rental term was 10.9 months, and the preferred space size averaged 23.7 square meters. The average time to the desired move-in date was 31 days.
Further supporting the demand for flexibility, a survey by Cushman and Wakefield indicated that 62% of employees preferred to remain in a job offering flexible work options over accepting a higher-paying position with rigid in-office requirements.
Occupancy Rates
In California, coworking spaces achieved an average occupancy rate of 85%, with tech-focused facilities reaching 92%. Texas also saw strong occupancy, with flexible workspace occupancy rates increasing by 32% year-over-year, led by Austin's average occupancy of 87% (Verified Market Research).
Office occupancy levels worldwide showed an upward trend in 2024, suggesting a similar pattern within the US flexible office market (Savills US).
Demand Factors
The major demand-driving factor for flexible workspaces in 2024 was the IT/ITES sector, which held the largest market share. The BFSI (Banking, Financial Services, and Insurance) sector is also projected to experience the fastest growth in demand (Precedence Research).
A specific breakdown of coworking users revealed that IT & Tech and Financial Services accounted for 50% of members, followed by Construction (43%), Energy (43%), Manufacturing (33%), and Business & Professional Services (30%).
These figures highlight the diverse range of industries utilizing flexible workspace solutions, with a strong presence from the technology and finance sectors.
Why Do People Move to Flexible Offices?
The transition toward flexible office spaces in the US in 2024 was driven by several factors, reflecting the evolving needs and priorities of businesses and individuals. Office Hub's 'Motivation to Move' data provides a detailed breakdown of the main reasons behind this shift, which are listed below.
Data from Office Hub’s 2024 Co-Stats Report
Furthermore, CBRE reported that an increasing percentage of companies are expanding their occupied space, which may include a greater reliance on flexible options.
In addition to this, specific demands for flexible offices are also evolving, listed below:
- Sustainability is gaining prominence, with a growing interest in environmentally friendly workspaces and certifications.
- There is also a demand for high-quality amenities that enhance the employee experience and support productivity.
- The emergence of niche-specific flexible workspaces catering to particular industries or needs is another potential area of growing demand.
What are the Top Features and Facilities People Look For?
According to the data gathered by Office Hub, businesses and individuals rent flexible office spaces in the US while prioritizing certain features and facilities, listed below:
Data from Office Hub’s 2024 Co-Stats Report
Building Features and Facilities
Data from Office Hub’s 2024 Co-Stats Report
Furthermore, phone booths, internal meeting rooms, and collaboration spaces are increasingly demanded features. Operators also anticipate a rise in demand for meeting rooms, event spaces, and coworking desks.
Regional Breakdown of the US Flexible Workspace Market in 2024
The US flexible office market in 2024 exhibited regional variations in key metrics such as demand, pricing, and supply, as explained below:
Miami emerged as a high-growth market for flexible workspace demand, boasting a significant six-year compound annual growth rate (CAGR) of 20%. Washington, D.C., also saw steady growth throughout 2024, fueled by increased demand for larger office spaces with 20 or more desks.
While New York City and San Francisco experienced lower demand than pre-pandemic levels, both have shown signs of recovery over the past few years, indicating a potential growth cycle is underway (Allwork.Space).
Similarly, according to data from CoworkingCafe, the number of coworking spaces across major US cities in Q4 2024 was as follows: Los Angeles led with 292 spaces, followed by Dallas—Fort Worth with 286, and Washington, D.C., with 277.
Manhattan ranked fourth with 273 spaces. Other cities with significant coworking inventories included Chicago (263), Atlanta (240), and Denver (232).
Meanwhile, New Jersey, a major suburban market of New York, experienced a significant 36% year-over-year growth in coworking space inventory, according to a report by Cushman and Wakefield.
The Inquiry-to-Deal Summary
Data from Office Hub’s 2024 Co-Stats Report
The average time from an initial inquiry to a signed deal was 13.5 days. Following the signing of the deal, the average time until the client moved in was 14.2 days. This relatively short timeframe totaled approximately 27.7 days from inquiry to move-in, highlighting the agility and speed businesses took to secure and occupy flexible workspace.
Key metrics of the signed flexible office contracts in 2024 included an average team size of 2.6 people. The average contract value was $10,551, with an average agreement term of 9 months.
The actual average monthly desk rate for these signed deals was $456. The average discount applied to signed deals was also minimal, at just 0.7%.
These figures indicate that the majority of deals facilitated through Office Hub in 2024 involved small teams and relatively short-term agreements with fairly consistent prices and minimal discounting.
