Report finds occupier demand expanding beyond traditional gateway markets as owners increasingly use flexible workspace to activate underutilized office space
New York – As the pipeline of new office development across the Americas continues to shrink, flexible office providers are playing an increasingly important role in helping occupiers access high-quality workspace and owners reposition existing assets, according to Cushman & Wakefield's Global Trends in Flexible Office 2026 report.
The research found the Americas office construction pipeline has fallen to just under 32 million square feet, an 82% decline from its recent peak of 175 million square feet in the first quarter of 2020. Conversely, flexible office inventory continues to expand in the United States, increasing 18% year-over-year (YOY) as of the second quarter of 2026. Flexible office space now accounts for 3.1% of total office inventory nationally, up from 2.6% in Q2 2025 and 2.3% in Q2 2024. Across the nation's 25 largest flexible office markets, flexible office inventory accounts for 3.2% of office stock and increased 17% YOY.
"Flexible office has moved beyond its role as a short-term solution and is increasingly becoming part of the office market's long-term infrastructure,” said Maggie Tillotson, Senior Analyst, Global Research at Cushman & Wakefield. “As development of office inventory slows, occupiers still need access to high-quality workplace environments that can support changing business needs. Flexible office space offers a faster path to occupancy, while giving owners new ways to improve building performance and meet evolving tenant expectations."
At the same time, leasing activity by the largest U.S. flexible office providers has continued. Leasing activity over the past four quarters exceeded 2021-2023 levels by 32%.
"Flexible office growth is extending beyond conventional leasing activity as operators increasingly leverage landlord partnerships and establish locations in retail properties,” said Christine Wyckoff, Head of Americas Flexible Office Services at Cushman & Wakefield. “For owners, flexible office is increasingly being incorporated as part of broader asset repositioning strategies. Partnerships with flexible office operators can help activate underutilized space while providing occupiers with workplace options that better align with evolving needs.”
The report also highlights a broader geographic shift in supply and demand. All 25 of the largest U.S. flexible office markets recorded YOY inventory growth, underscoring the sector's expansion beyond a handful of established gateway markets. Occupiers are increasingly seeking workspace solutions across a wider range of locations, while providers continue to broaden their footprints. In the U.S., suburban flexible office locations increased 39% between 2024 and 2026, compared with a 22% increase in urban locations.
