The Case for Flex: Why Landlords Who Adapt Will Win

How shifting tenant expectations, national trends, and Boulder’s evolving office market are creating new opportunities for forward-thinking landlords.

The Rise of Flex Office Demand Post-COVID

In the wake of the COVID-19 pandemic, the office market has undergone a seismic shift. Nationwide, companies are dramatically rethinking how and where work happens. With hybrid work now the norm, tenant demand has shifted sharply away from rigid long-term leases toward more agile, flexible office space solutions.

Surveys show that only 4% of CEOs are still pushing for a full return to the office, while over two-thirds of CFOs are preparing to embrace hybrid work in 2024. A global report from JLL revealed that 41% of tenants plan to increase their use of flexible and short-term office space—marking a new chapter in corporate real estate strategy.

Flex Is Becoming the New Normal

The data is clear: this is not a temporary trend. According to The Instant Group, demand for flex space jumped 13% year-over-year in the first half of 2024. National inventory has increased by roughly 25% in the past year alone. Analysts predict that flex space could represent 30% of the total U.S. office market by 2030, up from just 3% in 2020.

Why the surge? Today’s tenants prioritize:

Shorter, scalable lease terms
Turnkey move-in-ready offices
Access to shared amenities and collaborative spaces
Cost efficiency and adaptability

CBRE reports that “flexibility remains a top priority” in occupier surveys. This evolving demand is fueling the adoption of core-and-flex strategies, allowing companies to downsize long-term leases and supplement with flex space as needed.

A New Tenant Mindset Means a New Landlord Playbook

For landlords, this evolution presents both a challenge and a lucrative opportunity. Traditional leasing models tied to 5- or 10-year contracts are losing appeal. Buildings that don’t offer some form of flex solution risk being overlooked entirely.

According to global surveys, flexible workspace is now the most in-demand building amenity, outranking even fitness centers or on-site cafés. To stay competitive, landlords are adapting by:

Partnering with flex space operators
Creating in-house “space as a service” offerings
Repurposing underused floors into agile, modular environments

Boulder, Colorado: A Case Study in Flex Adaptation

Nowhere is this transformation more visible than in Boulder, Colorado, where the city’s unique blend of innovation, high remote-work rates, and entrepreneurial energy has accelerated the shift.

28.1% of Boulder’s workforce now works from home, double the national average.
Downtown office vacancy has climbed to 33%, up from 8% pre-pandemic.
New leases are shrinking, from 30,000 sq. ft. to 1,500 sq. ft. and below.

Despite these pressures, many Boulder landlords are turning to flexible space strategies to revitalize their buildings. Notable examples include:

BioMed Realty converting Flatiron Park offices into lab-ready “flex” spaces to attract biotech tenants.
Office Partners on Pearl and Office Evolution experiencing rising demand for plug-and-play offices from hybrid teams and freelancers.
City zoning reforms aiming to allow shared workspaces and creative reuse of empty offices.

In short, Boulder’s experience reveals how flex space is not just for major metro areas—it’s a lifeline for mid-size innovation hubs looking to stabilize vacancy and attract next-gen tenants.

Real-World Proof: Landlords Boosting NOI with Flex

Across the U.S., landlords who embraced flex space early are seeing compelling results.

1. Macquarie & Industrious (Scottsdale, AZ)

Revenue-share model led to occupancy rebound and above-market rents post-pandemic.

2. Boston Properties (“Flex by BXP”)

Flex spaces serve as incubators, helping startups transition into long-term leases within the same building.

3. Boxer Property (Workstyle Suites)

Suburban offices reimagined with flex suites, boosting occupancy and profitability without third-party operators.

4. Hines & Industrious Partnership

90% occupancy within months in NYC, with flex space increasing overall building appeal and traffic.

The common theme? Flex space, when well-executed, delivers:

Higher income per square foot
Better occupancy resilience
Enhanced tenant satisfaction and retention
Strategic upside through revenue-sharing or in-house control

Seven Tactical Steps for Landlords Entering Flex

Here’s how Boulder landlords—and others nationwide—can begin offering flex solutions without overhauling their whole portfolio.

1. Start Small

Pilot a flex floor or spec suite. Gauge demand before scaling. Even 1,000–3,000 sq. ft. can validate the opportunity.

2. Choose Your Operating Model

Lease to a coworking operator
Revenue share with a partner (e.g., Ground Control)
DIY with your team (requires more effort, higher control)

3. Design Smart

Think modular, tech-forward, and hospitality-inspired: phone booths, shared lounges, clean design, and secure Wi-Fi.

4. Maintain Flexibility

Use demountable walls, avoid over-specialization, and preserve the ability to revert to traditional leasing if needed.

5. Coordinate with Property Management

Ensure flex users and long-term tenants coexist well. Offer shared access to conference rooms or lounges.

6. Market Effectively

List on flex marketplaces. Host local events. In Boulder, tap into the startup ecosystem with free passes or partnerships.

7. Iterate and Partner

Solicit user feedback, refine your offerings, and explore partnerships with universities, accelerators, or local operators..

Conclusion: Future-Proofing Your Asset with Flex

Flex space is no longer an experimental trend—it’s a defining feature of the modern office market. Landlords who act now can benefit from higher revenue, lower vacancy, and a stronger tenant pipeline.

In Boulder and beyond, this shift presents an opportunity not just to survive, but to thrive with a future-proof, tenant-centered portfolio.

At Ground Control, we help landlords evaluate, launch, and manage flexible workspace models tailored to their buildings and markets. Whether you’re just starting or ready to scale, our team can help you make the leap confidently and profitably..

Want to explore flex options for your building?

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