Demand for flexible office space is higher than ever – occupancy
rates have reached a new high, with 76 per cent of operators planning to expand
The growth trend in flexible office space continues: 76 per cent of the operators surveyed plan to expand their portfolio of flexible office space within the next twelve months. This is the key finding of the Flexmark Report 2026 by Workthere. For the study, the division of the global property consultancy Savills specialising in flexible office space surveyed around 200 decision-makers from operator companies worldwide.
Berlin ahead of Munich
in terms of rents. These expansion plans are accompanied by sustained high demand for flexible office space. As a result, the average global occupancy rate reached a new high of 85 per cent in 2026. It was particularly high in San Francisco, at 97 per cent. This was followed by Madrid at 91 per cent, and London and New York, both at 90 per cent.
This high demand is also reflected in the pricing: globally, London leads the field with a monthly rent of USD 1,328 for a workspace in the premium segment, followed by New York (USD 1,240) and Los Angeles (USD 1,100). In Germany, Berlin remains at the top with monthly rents per workspace in the premium segment of 936 USD, ahead of Munich (850 USD) – this puts the German capital in sixth place globally amongst cities with the highest workspace rental prices and in third place when compared with major cities within the EU.
Large companies are driving demand for flexible office space
A key driver of high occupancy rates is the growing demand for flexible office space from larger companies. These differ significantly from start-ups and small and medium-sized enterprises (SMEs) in terms of space requirements and duration of use. Whilst 85 per cent of start-ups and SMEs are looking for flexible spaces with fewer than 20 workstations, 48 per cent of larger companies require more than 50 workstations. The demand is even higher among multinational corporations: 23 per cent are seeking flexible office units with more than 200 workstations. At the same time, larger companies use flexible office space for longer on average. Their average tenancy period is 3.9 years, compared with 2.6 years for start-ups and SMEs.
For landlords, this means, on the one hand, a secure source of income in the long term, but, on the other hand, a higher risk of vacancy when a tenant moves out. For example, 74 per cent of office units with up to 25 workstations are re-let within three months. In the case of larger units with more than 25 workstations, however, it takes longer than four months to find a new tenant in 53 per cent of cases.
The commercial property market continues to evolve: “Our
global study shows that demand for flexible office space continues to rise. This is a trend we are also observing in Germany. It is interesting to note that users’ needs are changing: whilst amenities such as gyms and roof terraces are becoming less important, functionality and practical factors such as the availability of car parks, quiet spaces and proximity to external amenities such as pedestrianised areas are gaining in importance,” says Daniel Jessop, Head of Workthere Germany at Savills.
The study also provides fascinating insights into the further development of the business model. For instance, more than 65 per cent of operators stated that they foresee a greater need over the next five years for spaces that focus on lifestyle and design; over 60 per cent expect more AI to be used in the management of office space; and around 55 per cent expect the conversion and refurbishment of older buildings to become increasingly important when developing further space.
