Over recent years we have seen the flexible office market remain resilient with stable occupancy levels and a more diverse occupier base as larger businesses looked to add some agility into their portfolio. Despite the recent challenges facing WeWork, the flexible office sector has this year, once again, proved its strength with increased take-up levels, robust levels of demand and a change in the way that the sector is viewed with many now including it as part of the office market structure rather than an add on. But what does 2025 have in store for the sector and how can it continue to mature further? 

Rise of managed in the regions

In response to occupier demand for flexibility, the rise in build costs and the need to compete with serviced office operators, we have seen a surge in fully fitted landlord space entering the flex market across Amsterdam over the past five years. In fact, for space of under 500 sq m, this has become the default. Hot on the heels of the fitted phenomenon was the rise in fully managed office space, providing a home for occupiers graduating into ‘traditional’ leased space with the flexibility of serviced space, but without the hassle and capital outlay. A good example are the royal suites on the upper floor of HOFF. 

Service in Serviced  

Occupiers increasingly see their office space as a representation of their brand and ethos and since the pandemic we have seen a flight to quality for businesses looking to attract and retain best in class talent, with increased demand for best-in-class space. This does not just extend to the amenity provided, but also to the on-going day to day service provided to the occupier. With an increasing number of serviced office operators and landlords providing fully inclusive and managed office space, looking ahead it is those who are providing a 5*hospitality style service that will successfully retain occupiers, while those that don’t concentrate on service will see increased churn and reduced overall occupancy. Even for those brands that target the budget end of the market, good service will be key to retaining their customer base.

Next wave of Operators

The maturity of the flexible office sector, now forming part of the mainstream office market, means an increase in competition between operators competing for occupiers’ business. Whilst IWG, WeWork and Tribes have brand recognition in the Netherlands, they are facing increasing competition from the next wave of operators. The likes of RIVVIA are expanding from the UK to the Netherlands. Additionally, Co-Office, Frame Office, and Beyond have also opened locations on the Amsterdam canals. This increasing choice will continue in 2025 and is a positive in aligning drivers for asset owners and occupiers.  

Combined with an increase in the proportion of landlord portfolios that are now being allocated to flex, with a particular focus on managed space, we expect the result to be a continued blurring of the boundaries between serviced offices, enterprise suites, managed offices and everything in between, which can only aid occupier choice.

Aligning Corporate Values

In 2025 and beyond, the alignment of spaces and landlords/operators with occupiers’ corporate values will become increasingly critical. While sustainability initiatives, accessibility, and the inclusion of facilities such as prayer rooms and parent rooms have been features sought primarily by larger occupiers and found in larger office buildings, they are now becoming essential considerations for tenants in serviced and managed space of all sizes. There is also a growing focus on embedding social value within the flex sector, recognising the investment in aligning with and supporting local communities.  Occupiers are increasingly demanding spaces that reflect inclusivity, accessibility, and sustainability, and providers must proactively adapt to remain competitive in this shifting market.