According to the latest Flex Futures 2025 report from Flexible Workspace Australia, nearly 77 per cent of co-working and flexible workspace operators reported increased revenue in the past year, while 60.5 per cent saw growth in profits.
Industry confidence is also high, with operators rating their current business sentiment at an average of 8 out of 10.
Operators remain optimistic about future performance, with 70 per cent expecting to increase revenue in the coming year and 76 per cent anticipating improved profitability. However, most predict steady rather than rapid growth over the next five years.
“The flexible workspace industry has undergone a period of rapid transformation in the past few years, driven by shifting work preferences, technological advancements, and evolving commercial real estate dynamics,” FWA board member and Spacecubed Chief Executive Officer Ophelie Cutier said.
Economic uncertainty was identified as the leading challenge for the next 12 months, cited by almost 53 per cent of operators.
Growing occupancy rates and high operating costs were key concerns for 50 per cent of respondents.
The report highlights a significant shift in the industry’s geographic focus, with strong growth emerging in suburban and regional areas as operators expand beyond traditional city centres.
This expansion reflects changing work patterns and increased demand for accessible workspace options outside metropolitan hubs.
For users of flexible workspaces, location remains the primary consideration, followed by price, flexibility, and basic amenities such as coffee, internet, and printing facilities.
Small businesses and solo operators continue to form the core customer base for these spaces.
The survey, conducted at the end of 2023, addressed a gap in data involving commercially sensitive metrics and provides unprecedented insights into the sector’s health and trajectory.
None of the surveyed operators predicted a decline for the industry.
“Flexible workspaces are no longer just an alternative, they’re now a cornerstone of the modern workplace,” Ms Cutier said.
“As hybrid work reshapes office demand, businesses are turning to flexible spaces for agility, cost efficiency, and a strong sense of community.”
The report also incorporates pricing insights, vacancy rate data, and market trends from office marketplace platform Rubberdesk and commercial real estate services firm CBRE, offering a comprehensive view of the industry landscape.
Customer expectations continue to evolve, with increasing demand for high-quality services and amenities in workspaces.
This trend reflects the maturing nature of the industry as it adapts to changing work preferences and business needs.
“The results reflect a maturing and diverse industry, with operators catering to different market segments across Australia,” Ms Cutier said.
“Flexible workspaces are evolving beyond traditional city hubs, with strong demand driving growth in suburban and regional areas.
“This shift signals a new era for the industry, one that prioritises accessibility, quality, and flexibility.”
