Expanding Beyond the Central Business District: Where Flex Growth Is Really Happening

TL;DR

1 - Suburban coworking and flexible workspace has expanded 58% since 2023, while urban markets grew just 4%. The growth is happening outside central business districts.

2 - Tertiary markets are growing nearly 10% year-on-year. Miami's flex space now accounts for 7.6% of total office inventory.

3 - laiout helps operators model yield consistently, build cases for landlord management agreements, and create investor-ready expansion materials.

Why this matters for flex operators

The flex market is decentralising. Recent analysis from LoopNet shows suburban coworking expanded 58% since 2023, while urban markets grew just 4%. Suburban Dallas added 40% more inventory; New York City contracted. For operators planning their next location, the signal is clear.

- Tertiary markets are outpacing gateway cities. A Commercial Observer analysis found tertiary markets grew nearly 10% year-on-year as of Q2 2025, with Miami's flex inventory now representing 7.6% of total office space.

- Commute time determines member attendance. Industrious CEO Jamie Hodari told Fortune that the difference between a 10- or 15-minute commute and a 45-minute commute is "probably the single biggest determinant" of whether members show up consistently.

- Neighbourhood locations are outperforming downtown. Hodari noted that Prospect Heights in Brooklyn is Industrious's fourth highest-performing location out of 30 across New York, despite sitting outside the traditional Midtown and downtown hubs.

How laiout helps you expand into suburban markets

- Model yield with consistent assumptions: Suburban buildings vary wildly in efficiency. A 10,000 sqft floor might yield 85 desks in one building and 60 in another. laiout lets you test configurations using the same parameters across all sites, so you are comparing like with like.

- Build cases for landlord management agreements: Asset-light expansion is how the fastest-growing operators are scaling. laiout generates configuration options in minutes, giving you materials to show a credible vision of a building's potential.

- Create investor-ready expansion materials: When presenting to investors or internal stakeholders, your numbers need to hold up to scrutiny. laiout exports capacity, cost, and configuration data that supports business cases and funding discussions.

FAQs

Q1: Is suburban expansion relevant if we only operate in one city?

Even within a single metropolitan area, members increasingly choose locations closer to where they live. A neighbourhood site 15 minutes from home may outperform a central business district location an hour away.

Q2: How quickly can we assess a new suburban flex space opportunity?

With laiout, you can upload a floor plan and generate multiple layout options with desk counts and cost estimates in under 60 seconds. This lets you evaluate opportunities before committing architect time or site visits.

Q3: Does this support management agreement negotiations with landlords?

You can present landlords with multiple configuration options showing yield potential and estimated capacity, helping both parties align on what the space could deliver before finalising terms.

Position your portfolio for the suburban shift

Suburban and tertiary markets are where flexible workspace demand is growing fastest. Operators who can identify, assess, and act on these opportunities quickly will capture market share from those still focused exclusively on central business districts. If you are evaluating suburban expansion, laiout helps you model yield consistently, build compelling landlord presentations, and create investor-ready materials. Book a demo with laiout today and start expanding with confidence.

Key Takeaways

  • Suburban coworking and flex space expanded 58% since 2023; urban markets grew just 4%.
  • Tertiary markets are growing nearly 10% year-on-year, with Miami flex at 7.6% of total office inventory.
  • Commute time is the single biggest factor in member attendance and retention for flexible workspace.
  • Neighbourhood coworking locations are outperforming traditional central business district sites.
  • laiout enables consistent yield modelling across multiple suburban sites using the same parameters.
  • Asset-light expansion through landlord management agreements requires compelling visual materials.
  • AI-powered space planning exports capacity and cost data for investor presentations and funding discussions.

Author: Theodore Harding, laiout

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