Enterprise Growth and Suburban Demand Signal the Next Phase of Flex Across Australia and New Zealand

The latest Global Flexible Workspace Report from The Instant Group confirms - flexible work is no longer a trend, it’s a core business strategy. Global demand for flexible workspace rose 24% year-on-year in the first half of 2025, while demand across Australia and New Zealand specifically jumped 38% in H1 2025 compared to H1 2024, outpacing global averages.

Enterprise adoption reshaping the APAC market

Large corporate occupiers are accelerating this workplace shift. Across APAC, 68% of enterprise organisations (10,000+ employees) now operate flexible or hybrid models - and in Australia and New Zealand, 32% of all flexible workspace demand in H1 2025 came from enterprise clients, up from just 18% in 2022.

This represents a significant cultural and commercial shift, as larger firms move away from long-term leases toward scalable, service-driven flexible workspace models.

Localisation and suburban growth on the rise

As hybrid work continues to shape how and where people work, proximity is emerging as a critical driver.

The Instant Group’s latest findings show that the cost of travel and commute timeare pushing employees to seek flexible workspace solutions closer to where they live across Australia, New Zealand and indeed globally. This trend is fuelling a surge in suburban and secondary market demand:

• Melbourne suburbs have seen a 104% increase in demand for flexible workspace year-on-year (H1 2025 vs H1 2024).

• Sydney suburbs follow with 42% growth over the same time period.

  
  

As The Instant Group’s CEO Tim Rodber notes, “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 into a revenue-generating asset.”Where flex demand meets opportunity

Markets such as Canberra and Perth stand out as “bright spots” in Australia, where demand is high but supply remains limited. Demand for Canberra in H1 2025 was up by 67% compared to 2022, while supply was down 3% for the same period.

Over in Perth, demand was up by 96%  in H1 2025 but supply was down 12%, compared to 2022. For operators, success will depend on data-led expansion strategies - understanding how occupier needs differ by city and submarket to avoid overbuild risk.

Flex delivering stronger yields and employee outcomes

Flex is also winning on financial and human metrics alike. Instant’s data shows flexible workspace is outperforming traditional offices on returns, with flexible rates in Sydney 2.9x, Melbourne 4.1x, and Adelaide 5.1x higher than traditional office leasing rates.

At the same time, APAC employees working flexibly are healthier and more productive - 84% report improved physical health and 83% improved mental wellbeing, while 86% say they are more productive in flexible workspaces compared to 65% in the company’s main office.

Flex is reshaping the fabric of commercial real estate, and for Australia and New Zealand, there is opportunity on multiple fronts - suburban expansion, enterprise partnerships, and data-driven development. The next phase of flex is about seizing these opportunities and strengthening flexible work across the region.