The Instant Group, the largest global marketplace for flexible workspace, has revealed that demand for flexible offices outside the UK’s major cities is growing rapidly, with flexible workspaces in regional markets accounting for 66% of overall demand, up from 54% in 2020 as companies of all sizes empower their teams to work closer to home.
The figures are from Instant’s first-ever Global Flex Market Report, which explores market dynamics and enduring post-pandemic trends across the UK and worldwide.
As the geography of work is opening up, the flexible workspace landscape across the UK is undergoing a significant transformation.
While many operators are expanding into key cities beyond London, and a growing number of regional providers are emerging, smaller towns and suburban areas present significant opportunities for further growth and market development.
This presents a valuable opportunity for early movers to establish a presence and meet the growing appetite for localised, high-quality flex space.
Ongoing investment in new supply is required to keep up with current demand. Based on current demand and supply levels, many popular commuter towns are set to reach capacity within the next 12 months, such as London’s Sidcup (0.64 yrs), Cannock (0.65 yrs), Walsall (0.67 yrs) and Slough (0.78 yrs).
Data from the report also suggests that in emerging growth markets, flexible workspaces have the potential to command rates up to 5x higher than conventional leases. In comparison, mature markets, such as London and New York, see flex space achieving 2-2.25x the rates of traditional leases on a per-square-foot basis.
Companies worldwide, regardless of size, are increasingly recognising the benefits of workplace flexibility, from enhancing employee wellbeing to boosting productivity and reducing costs. Today, 74% of organisations have adopted some form of flexible or hybrid work model, and demand for flexible workspace solutions increased 63% in H1 2025 compared to H1 2024.
The report highlights the positive outcomes of this shift, including 84% of hybrid workers saying the model improves their mental health, while 82% report benefits to their physical health. Productivity also sees a marked uplift, with 56.3% of employees rating their performance as ‘excellent’ in a flexible workspace, compared to just 35.6% in a traditional office setting.
“The rapidly growing demand for flexible workspace in smaller towns represents a major investment opportunity for landlords and investors seeking to turn their real estate building into a revenue generating asset. This trend will continue to accelerate as we move into 2026 and beyond” said Tim Rodber, CEO, The Instant Group.