Flexible workspace is moving beyond conventional coworking stereotypes as businesses seek greater choice between traditional long-term leases and more flexible office solutions. Colliers Senior Executive Barney Wilson, who joined the firm in April after relocating from London, has seen the sector shift dramatically since 2018. In a conversation about the changing role of flex and what is next for the market, Wilson noted that before the pandemic, a large part of the conversation involved educating tenants on why they should consider flexible options over a traditional lease.
A shift in demand and perception
The pandemic changed this dynamic exponentially. Wilson said the number one demand now is flexibility, as businesses are wary of being tied down to long leases when they cannot predict their headcount or growth. He observed that London has been at the forefront of this evolution, developing a mature and diverse market that is unrecognisable from its state ten years ago. In contrast, Sydney and Australia are still playing catch-up, though Wilson believes the potential in the region is enormous.
One persistent perception in Australia is that flexible workspace is only for small companies, start-ups, or solopreneurs. Wilson said this view is incorrect. The market is expanding, and a significant development outside Australia has been the rise of managed offices. These spaces sit between a traditional lease and a serviced office, offering self-contained environments with all-inclusive pricing for those seeking a middle ground.
For Australian businesses, this type of product is likely to become increasingly important. Wilson said landlords and operators are responding to occupiers who want spaces for 20 to 100+ people with private meeting rooms, executive offices, and kitchen facilities, yet still want flexible terms of 12 to 24 months. Currently, the market often lacks products that perfectly match this combination of requirements, leaving some businesses to pursue traditional leases simply because a suitable flexible option was not available.
This gap creates friction in the process. A 30-person business might want its own office and facilities but cannot find a flexible product that provides them all. As a result, the company often goes through a lengthy traditional leasing process that can take months, when a flexible solution could be delivered within weeks. This inefficiency presents an opportunity for traditional landlords to reconsider how they use existing office space, potentially utilising vacant floors more effectively to meet this demand.
Wilson argues that flexible office space should increasingly be viewed as part of the broader office market rather than a separate alternative. “Flexible office space is the future of office space,” he said. “It is not necessarily about replacing traditional leases but giving occupiers more choice around how they take space and for how long.” This focus on choice is also influencing how operators design and position their spaces, with a greater emphasis on matching the product to specific occupier requirements.
Opportunities for traditional landlords
The changing market structure presents a clear opportunity for traditional landlords to rethink their property portfolios. Wilson stated that this shift will force landlords to update their strategies. They must think creatively about how to use existing assets. Empty space in buildings represents a chance to meet the growing demand for flexible options. Utilising these floors more effectively can turn vacancies into productive assets.
Speed is also a defining characteristic of the current market. “More than 50 per cent of our enquiries go out and view space within a week and the average time from first enquiry to someone signing is 10 working days,” said Mr Wilson. This rapid turnaround contrasts sharply with the months-long process of securing a traditional lease.
Future trends and specialisation
Wilson anticipates that the flexible workspace model will continue to evolve. A significant development on the horizon is the rise of dedicated buildings for this purpose. At the moment, flexible workspace providers are limited to one or a few floors within a whole building. Soon there will be locations where every floor will be purely flexible offices of all sizes from 10 square metres to 1,000, he added.
Mr Wilson also expects flexible workspace to become increasingly specialised, with industry-specific locations emerging across sectors including health, technology and law. He said the quality of the physical workplace remained important as occupiers became more discerning about what they wanted from flexible space. “Community is important but it can’t make up for a poor-quality space. If the office is dark, small or simply not a good place to work, the community element loses its value,” said Mr Wilson.
