What is a flexible workspace?

A flexible workspace is a fully equipped, on-demand work environment with adaptable lease terms, from daily passes to annual memberships. Unlike traditional offices that lock companies into multi-year commitments, flexible office space offers everything from hot desks and private offices to virtual office services and conference rooms on flexible contracts.

The core difference: Traditional office space assumes everyone works from the same space on the same schedule. Flexible workspaces assume work happens wherever your people are, allowing companies to adapt quickly to changing business needs.

Key characteristics of flexible office spaces

• Flexible lease terms: Daily, weekly, monthly, or annual options vs. 3-5 year traditional leases
• All-inclusive pricing: Furniture, utilities, high-speed internet, and amenities bundled into one fee
• On-demand access: Book desks, meeting rooms, or private workspace when you need it
• Scalability: Expand or contract office footprint without lease renegotiation
• Professional amenities: Meeting rooms, phone booths, standing desks, event spaces, and more

For a deeper dive into terminology and definitions, see our guide to what flexible office space is and how it transforms businesses.

Types of flexible workspaces

Not all flex workspace is created equal. Understanding the different types helps you match workspace solutions to specific use cases.

Coworking spaces

Shared work environments where like-minded professionals from different companies work alongside each other in open plan designs. These collaborative spaces typically feature open areas with various desk layouts, coffee bars, high-speed internet, and opportunities to network with other members.

Best for: remote employees needing occasional professional space, small teams without dedicated office space, or companies testing new markets before committing to dedicated space.

Typical arrangement: Open desks, shared amenities, community events. Pay-as-you-go or monthly memberships.

Hot desking

A booking model where employees choose from available workstations on a first-come or reservation basis with no assigned desks. This approach maximizes space utilization by eliminating permanently assigned seating.

Best for: hybrid teams with staggered office schedules, companies optimizing real estate costs.

How it works: Employees book a desk for the day through a workspace management platform. No permanent assignments means more flexibility and better space utilization.

Desk hoteling

The opposite of hot desking: employees reserve specific desks in advance for guaranteed availability. Best for: teams that need predictability, employees with specific equipment requirements.

Key difference from hot desking: Reservations vs. first-come availability.

Private office spaces

Dedicated, enclosed workspace for a single team or company within a flexible workspace building. These spaces offer minimal disruption and private workspace for confidential work while maintaining access to shared amenities.

Best for: teams requiring privacy, sensitive client work, or consistent space without long-term lease commitments.

Typical arrangement: Furnished private office with access to shared meeting rooms and open areas. Monthly or annual terms.

Virtual office services

Business address and mail handling without a physical workspace. Best for: fully remote companies needing a professional address, businesses expanding into new markets before establishing a physical presence.

Hybrid workspace solutions

Combinations of the above, mixing dedicated office space with on-demand access to coworking and meeting rooms. Best for: companies with hybrid work policies that need both consistent HQ space and distributed access for team members worldwide.

Flexible workspaces vs. traditional offices

Understanding the tradeoffs helps workplace leaders make informed decisions about their real estate portfolio.

When traditional offices make sense

• Office culture depends on consistent physical presence
• Specialized equipment or buildout requirements
• Long-term headcount stability
• Need for complete brand control over space

When flexible spaces make sense

• Distributed or hybrid workforce
• Unpredictable growth trajectory
• Geographic expansion without commitment
• Cost optimization during uncertain periods

Many companies use both: traditional HQ space supplemented by flexible workspace access for distributed employees.

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Why flexible workspaces matter for distributed teams

The shift to distributed work isn't temporary. 25% of all paid workdays in the U.S. are now remote, up from just 5% pre-pandemic. And while 68% of workers are now mostly in-person (up from 34% in 2023), how they work in-person has fundamentally changed.

For workplace leaders, this creates a strategic challenge: how do you provide employees with professional workspace spread across multiple cities without committing to expensive long-term leases in each location?

The distributed workforce problem

Traditional real estate models assume everyone works from the same space. That assumption no longer holds. Companies with distributed workforces need workspace solutions that follow their people, not the other way around.

Consider a 500-person company with employees in 15 cities. Traditional approach: lease dedicated offices in each major hub. Result: massive real estate overhead, underutilized space in smaller markets, and inflexibility as headcount shifts between locations.

Flexible workspace approach: Provide on-demand access to vetted workspaces in all 15 cities. Employees book the perfect workspace when they need it. Costs scale with actual demand.

Supporting hybrid work policies

Hybrid work statistics show that most companies have settled on some version of "flexible in-office expectations." But that creates a capacity planning nightmare: if employees choose when to come in, how do you right-size your office?

Flexible workspaces solve this by decoupling workspace from fixed real estate. Teams can gather for enhanced collaboration without maintaining space for peak capacity every day.

Strategic benefits of flexible workspaces

The benefits extend beyond simple cost reduction.

1. Cost optimization (not just cost cutting)

Yes, flexible spaces can reduce real estate costs. Companies like Checkr achieved 51% savings in workplace management costs. But the strategic value is optimization, not minimization.

Fixed costs become variable costs. Instead of paying for space regardless of utilization, you pay for space when it's used. Office utilization globally hovers around 40%, meaning companies with traditional leases pay for 60% empty space.

Capital preservation. Traditional office buildouts require significant upfront investment. Flexible workspaces shift capital expenditures to operating expenses, preserving cash for core business investments.

2. Geographic flexibility

Expanding into a new market? Testing demand before committing? Supporting a newly hired executive who lives across the country?

Flexible workspaces provide professional presence anywhere in the world without long-term commitment. 45% of coworking spaces are now in suburban neighborhoods, meaning your distributed employees can access workspace closer to home.

3. Employee well-being and retention

94% of employees report they'd benefit from flexible workspace options. Providing workspace variety (quiet areas for focused tasks, meeting rooms for collaboration, professional environments close to home) directly impacts satisfaction, well-being, and retention.

When you provide employees with access to the perfect space for their work style, they perform better. Some need open areas for collaborative space. Others need a quiet area for deep work. Flexible workspaces accommodate both without forcing one-size-fits-all office layouts.

4. Real estate agility

Business needs change. Layoffs happen. Growth spurts happen. M&A happens.

Companies locked into long-term leases face painful choices when team size shifts. Flexible workspaces enable your real estate portfolio to adapt quickly to changing business realities.

5. Reduced administrative burden

Managing traditional office space means managing vendors: cleaning, maintenance, security, IT, and utilities. Flexible workspaces bundle these services, reducing administrative overhead for workplace and facilities teams.

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How to implement flexible workspaces: a framework for workplace leaders

Here's a framework for workplace leaders rolling out flex workspace programs at scale.

Step 1: Assess your team's workspace needs

Start by understanding how your team actually works, not how you assume they work.

Survey employees about their workspace preferences. Some will want quiet areas for focused tasks. Others need meeting rooms and collaborative spaces for team projects. Some will use flex workspace daily; others occasionally.

Map your employee distribution. Where are people located? Which cities have enough employees to justify dedicated space vs. on-demand access?

Identify use cases. Are you replacing a headquarters? Supplementing it? Providing options for remote employees? Supporting a specific team's collaboration needs?

Use tools like our workplace survey template to gather structured input.

Step 2: Define policies and budgets

Clarity prevents chaos. Before launching a flex workspace program, establish:

Access policies: Who can book desks and meeting rooms? How often? Are there role-based differences (e.g., customer-facing teams get higher allocations)?

Budget parameters: Per-employee monthly allowances, department budgets, or unlimited access with usage monitoring? Consider how team size affects allocation.

Booking guidelines: How far in advance can employees book? Are there blackout periods? What about guest policies?

With platforms like Gable, you can manage these policies centrally, setting budgets, configuring permissions, and monitoring usage from a single dashboard.

Step 3: Select the right workspace providers

Choosing workspace providers is a critical decision, but it shouldn't be the starting point. First understand your business needs, then evaluate providers against them.

Key evaluation criteria:

• Network coverage (do they have locations where your employees are?)
• Booking flexibility (on-demand vs. committed)
• Space quality and consistency
• Technology integration with your existing tools
• Analytics and actionable insights for ongoing optimization

For a detailed framework, see our complete flexible office space selection guide.

Step 4: Communicate and onboard employees

A flex workspace program only works if employees actually use it.

Announce the program with specific details: what's available, who can access it, how to book desks and meeting rooms. Avoid vague "we're offering flexible options" messaging.

Provide booking training. Walk employees through the booking platform. Show them how to find the perfect workspace, make reservations, and access buildings.

Gather early feedback. The first month will surface issues you didn't anticipate. Create channels for employees to report problems and suggest improvements.

Step 5: Monitor usage and iterate

Implementing flex workspace isn't a one-time project. It's an ongoing program that requires monitoring and optimization.

Track key metrics:

• Utilization rates by location and space type
• Cost per employee per month
• Employee satisfaction scores
• No-show rates and booking abandonment

Adjust based on data. If certain locations are underused, investigate why. If employees consistently book certain space types, ensure adequate supply. Use workplace analytics to generate actionable insights for informed decisions.

Future trends shaping flexible workspaces

The flexible workspace market isn't standing still. Here's what workplace leaders should watch.

Continued market growth

The flexible office market is projected to grow from $39.57 billion in 2024 to $136.46 billion by 2032, a 17.08% CAGR. This isn't startup-driven growth; 92% of corporate occupancy decisions are now influenced by hybrid work policies.

Suburban expansion

The pandemic accelerated a shift toward suburban coworking. 45% of coworking spaces are now in suburban neighborhoods, reflecting employee preferences for shorter commutes and better work-life balance.

Enterprise adoption

Flexible workspaces were once associated with startups and freelancers. Now enterprise companies are the fastest-growing segment. Large organizations use flex workspace for geographic expansion, project-based teams, and supporting distributed workforces across the world.

Technology integration

Workspace management is increasingly data-driven. Platforms that integrate booking, analytics, and policy management are replacing fragmented point solutions. Expect continued convergence of workspace management toolswith broader workplace technology stacks.

Sustainability focus

Commercial real estate accounts for significant carbon emissions. Flexible workspaces, by maximizing utilization and reducing total square footage per employee, support corporate sustainability goals.

Building your flexible workspace strategy

Flexible workspaces have evolved from a niche workspace solution for startups into a strategic tool for organizations of all sizes. With the market projected to nearly quadruple by 2032 and hybrid work becoming the dominant model, the question isn't whether to incorporate flexible spaces. It's how to do it strategically.

The most successful implementations start with clear goals, invest in understanding employee needs, and treat flex workspace as an ongoing program to optimize rather than a one-time real estate decision.

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