Well before the pandemic hit and accelerated the process, economic volatility, political disruption, climate change and changing working patterns all led businesses to increasingly search for flexibility in their workspaces. That spurred on the movement towards shorter, more flexible occupancy agreements, giving birth to the rise of the flex workspace.
But as flex matures and traditional leases wane, a new question emerges: will the market be moving towards a new, blended workspace leasing model that bridges the gap between flexibility and stability, making everyone happy?
Here’s why we think the answer’s yes.
Long leases fallen out of fashion
Flexibility came to the forefront of businesses’ priorities amid the pandemic to be able to adapt their businesses to external factors.
To briefly recap, employees needed to work from home, leaving many once in-demand traditional offices unoccupied – the issue for landlords being that when offices reopened, many businesses had successfully adapted to a more hybrid working style.
The ability to scale also became paramount – whether scaling up or down, companies now require spaces that can respond to a change in needs rapidly and with agility.
For these reasons, being locked into rigid, lengthy leases in oversized traditional spaces simply doesn’t work for many businesses in 2025.
Of course, it’s understandable why some landlords are somewhat reluctant to move away from the long-term financial predictability of traditional leases to a more agile offering, but adapting with the market is key to long-term survival – and can offer a lot of benefits.
Commitments to flex grow as the market booms
From solo entrepreneurs and startups to huge corporations, flexible workspaces are increasingly attractive to businesses who value the model and services they offer.
And even with built-in flexibility and scalability, businesses are increasingly keen to lengthen their agreements with flex providers to establish some much-needed stability for their team.
For landlords, this can only mean good news, offering steadier income streams alongside a highly competitive, in-demand product and boosting all-important occupant retention. This added stability, paired with the diversity of businesses they can cater to, enables landlords and their provider partners to build a space around a sense of community.
What’s more, businesses understand the value of flexibility and as such, are willing to pay a premium for it. Having move-in ready office space with shorter commitment terms can, therefore, boost the overall income per square foot for landlords.
Meeting in the middle
As landlords and flexible workspace providers strive to adapt to evolving occupant demands, a blended approach is emerging – one that combines the stability of traditional leases with the agility of flexible options.
One way this could take shape is in contracts that balance short-term flexibility with long-term commitments. For example, businesses might agree to multi-year leases but retain the ability to scale or adjust their space as needed. This flexibility can be achieved through access to additional short-term workspaces in the same building, offered in partnership with flexible workspace providers.
Even though the modern workplace has shifted, many businesses still value the benefits of having their own dedicated office space – a hub for fostering company culture and engaging their employees. The ability to expand or downsize space on demand not only attracts new occupants but also helps keep existing ones on-site, reducing overhead and boosting efficiency.
Ultimately, the gap between traditional and flexible workspace agreements is narrowing, paving the way for a new and improved blended model that offers benefits for all. And naturally, close collaboration between landlords, flexible workspace providers and end users will be essential to bringing this to life.
Keen to see how flex could work for your portfolio? Get in touch with the infinitSpace team today.