The flexible workspace industry is at a defining moment—standing between accelerated growth and a potential plateau.
Instant’s Managing Director of Sales in Latin America, Luis Pérez’s recent presentation painted a picture of an industry that has evolved rapidly yet is struggling to scale supply to meet demand.
Paired with a conversation between Luis Pérez and Eduardo Oppenheimer, Global Head of Real Estate at Globant, a clear thesis emerges: flex space has become essential for businesses of all sizes, but its long-term success hinges on supply catching up to demand and operators adapting to enterprise needs.
The Evolution of Flex: From Fringe to Fundamental
Pérez outlined four key phases in the industry's development:
-Pre-2000s: The Business Centre Era – Flexible workspace was primarily convenient, offering temporary office solutions.
-2010s: The Coworking Boom – The rise of WeWork and similar operators made coworking mainstream, though still focused on freelancers and start-ups.
-2020: The COVID-19 Acceleration – The pandemic forced widespread adoption of remote and hybrid work, making flex spaces necessary.
-2025: The Mainstreaming of Flex – Flexible workspaces are now integral to corporate real estate strategies and continue to satisfy workplace needs for start-ups and small businesses.
The numbers reinforce this trajectory: global demand for flexible workspaces is growing at 9% annually, while supply lags at just 2% annually. This mismatch is especially stark in markets like Mexico City, where demand surged 15%, while supply increased by just 1%—exacerbated by large operators scaling back.
The Enterprise Dilemma: Why Big Business is Hesitant
While demand for flexible workspace is rising, enterprise clients have unique concerns, particularly after experiencing and understanding how the flex industry does or does not solve their needs.
Eduardo Oppenheimer shared insights from Globant, which operates in 81 cities with a mix of traditional offices and coworking spaces. While coworking plays a role in entering and expanding into new markets, it is often a temporary solution rather than a permanent strategy.
Key challenges include:
- Office Design & Comfort: Enterprise clients acknowledge that coworking spaces will never match the level of investment in their own offices. While they hope to see the gap narrow, the disparity remains significant, making it challenging to meet employee expectations.
- Flexibility Constraints: Long-term coworking contracts contradict the very flexibility they promise.
- Employee Experience: Workers accustomed to dedicated company offices often find coworking environments lacking privacy, space, and wellness features.
Oppenheimer stressed that operators wanting to attract enterprise clients must rethink their offerings. More flexible lease terms, improved design, and wellness-focused amenities (such as WELL-certified features) could make coworking spaces more viable for corporate use.
What’s Next? Scaling Supply, Strengthening Partnerships
Pérez emphasised that the industry's future depends on bridging the supply-demand gap. This requires stronger collaboration between landlords and operators, leveraging hospitality-driven services, and scaling supply more aggressively to meet corporate needs.
If 2020 was the industry’s inflection point, 2024-2025 is the moment of opportunity—especially for flexible workspace operators in Mexico City and across Latin America.
With demand outpacing supply, the region is primed for growth, offering operators the chance to expand their footprint, attract enterprise clients, and power the future of work. Those who innovate, scale strategically, and forge strong landlord partnerships won’t just keep pace with demand—they will shape the next era of commercial real estate.
