The ever-evolving global workspace landscape is witnessing a rising trend—the popularity of flexible offices. With shorter lease agreements and versatile office infrastructures, companies see an opportunity to cut costs compared to traditional office rentals. The city leading this revolution in Europe is Prague, the charming capital of the Czech Republic.
According to data from real estate consultancy firm CBRE, flexible offices accounted for five percent of all new leases in Prague in the first half of this year. Only London, with seven percent, was ahead of the Czech capital. These flexible offices proved to be attractive to tech giants like Microsoft, which occupied offices from developer Passerinvest. Apart from tech firms, pharmaceutical and marketing companies also sought spaces in coworking centers.
The appeal of flexible offices is not exclusive to Prague. Other cities like Madrid, Amsterdam, and Warsaw are also seeing a surge in demand for such workspaces. However, the growth in Prague is notable. International companies, including Prague, are increasingly entering the Central and Eastern Europe market and opting for coworking spaces instead of traditional offices, says Lenka Ferguson, a CBRE specialist in this type of property.
One factor driving the development of flexible offices is the home office trend. Due to remote work, employees only need their workspace part-time or sporadically for specific tasks. This makes it more beneficial for companies to enter short-term agreements with building owners for weeks or months rather than committing to seven to ten years, as is customary with traditional offices.
By the end of last year, Prague had 116,500 square meters of flexible spaces. Their market share has almost tripled in the previous five years, making up about three percent of the total. According to CBRE, the sector is expected to continue its growth this year.