Key Trends in the German Flex Market  

The German flex market is undergoing significant transformation, driven by shifting work habits, evolving business needs, and increasing demand for flexible, technology-enhanced spaces. From rising occupancy rates to the adoption of management agreements and evolving workspace design, here’s a look at the key trends shaping the industry in 2024. 

 Growth across seven key markets 

Since 2020, Germany has seen a remarkable 41.5% increase in coworking spaces, with over 500 cities now hosting such facilities but there are seven major cities leading the way. Berlin is hailed as the country’s “flex office capital” (having 330,000 sq m of existing and planned sites), followed by Munich (around 242,000 sq m), Frankfurt (around 150,000 sq m), Hamburg, Dusseldorf, Stuttgart, and Cologne. Our recently released German Coworking Connectivity Trends Survey 2025 found that most respondents’ sites were located in city centres in cities with a population size of over one million. 

Germany’s startup ecosystem plays a crucial role in shaping demand for flexible workspaces. While Berlin has historically led in startup activity, Munich surpassed it in 2022 with 15.5 startups per 100,000 residents compared to 13.5 start-ups in Berlin. With startups increasingly concentrated in these cities, demand for cost-effective, flexible office solutions is rising. Providers like Unicorn are expanding to meet this need, with locations in multiple cities across Germany and beyond, including its third Munich workspace in 2023. 

 According to Cushman & Wakefield’s latest report on the German flex office market, 78,000 sqm of new flex office space is in the pipeline across 39 locations, driven by ongoing investment. However, evolving tenant demands mean that office users increasingly prefer high-quality, smaller spaces in prime locations with flexible lease options. As technologywithin Director, Europe, Florian Kappes, identifies: “Most companies still want to offer their employees a professional and inspirational work environment, without paying for empty desks.” This shift underscores the growing need for adaptable office solutions that balance flexibility, quality, and cost-efficiency. 

Challenges in growth and profitability for smaller operators 

While Germany’s coworking scene grows rapidly, smaller, independent operators—who make up a large share of the market—face significant challenges.   

• Smaller coworking spaces struggle with occupancy: While larger coworking spaces (500+ sqm) enjoy an average 75% occupancy rate, smaller venues (under 500 sqm) often have nearly half of their desks unoccupied. 

• Profitability concerns: Only 20% of coworking spaces report being profitable according to Deskmag,a decline from previous years. Many smaller coworking hubs operate as non-profits or council-supported micro hubs, limiting revenue potential. Additionally, rising overhead costs, high rents, and energy price create further financial strain, as these businesses already operate on extremely thin margins. Additionally, the prevalence of smaller spaces—nearly 70% are under 500 square meters—limits revenue potential and service diversification, further impacting financial performance. 

• Customer acquisition is a major hurdle, with operators either struggling to attract members or lacking the space to accommodate demand. While some spaces struggle with limited local demand, others face the opposite issue of insufficient space to accommodate interested members. This dichotomy highlights the need for strategic planning and targeted marketing to balance supply and demand effectively. 

 However, there are notable successes in coworking to celebrate. Last summer, leading regional, family-run coworking businesses, SleevesUp and WorkInn, announced a merger, forming Germany’s largest coworking network announcing their new brand name Rivvers in February 2025. Florian explains that smaller coworking operators “consciously avoid the key markets to provide their communities with tighter networks.” It’s worth mentioning that community and event offerings are a big attractor, setting these smaller hubs apart from the bigger players. 

The rise of management agreements 

Management agreements are gaining traction as landlords and operators seek more flexible leasing structures. Unlike traditional leases with fixed monthly payments., these agreements involve revenue-sharing, reducing financial risk for operators and providing landlords with a steady income stream. These agreement types have increased in popularity in the German flex market since the pandemic, which shook the German flex market and resulted in a slow recovery. 

InfinitSpace is at the forefront of this shift, launching ‘beyond Quartier Heidestraße’ in Berlin, a 4,500 sqm workspace featuring 700 workstations and advanced technology. Additionally, it has partnered with CG Elementum to open flex workspaces in Mannheim and Cologne. Likewise, the US-based operator Industrious announced at the end of 2024 that it would expand to the German capital under a management agreement. At the end of January, the German pioneering coworking operator, betahaus, signed a management agreement for its 11th site with GSG Berlin (one of the city’s largest commercial property providers). 

With office vacancy rates expected to reach 8%, according to Cushman and Wakefield’s 2024 Q4 Market Beat, landlords are more inclined to explore alternative models like management agreements. Florian believes this is the “tipping point to encourage landlords to look at alternative models,” such as management agreements.  

Evolving workspace design for hybrid workers 

As hybrid work continues to shape office demand, workspace design is evolving to meet workers’ needs for both focus and collaboration. Key trends include: 

• Increased investment in ergonomics, with a rise in height-adjustable desks and premium office chairs. 

• Phone booths and private workstations gaining popularity, with 25% of new workspaces integrating them in 2024 according to a survey by the Industrial Association of Office and Working Environments and Forsa 

• Growing demand for breakout spaces, cafeterias, and fitness amenities, viewed as part of talent attraction strategies. 

• Sustainability and wellness-focused buildings, prioritizing air quality, noise reduction, and optimal lighting. 

• Workers enjoyed using smaller office spaces, with 53% of German employees working in one or two-person offices.  

 Connectivity and technology provide the backbone of it all 

As the demand for flexible workspaces continues to rise, technology has become a fundamental enabler of this transformation. High-speed internet, seamless connectivity, and smart office solutions are now non-negotiable requirements in coworking spaces. With businesses increasingly adopting hybrid work models, access to reliable and fast digital infrastructure is essential to meet the evolving needs of modern employees.  

At the heart of this technological shift is the rise of advanced connectivity tools. Operators are now adopting solutions that allow members to work seamlessly across multiple locations within a network. For example, platforms like twiindata Nomad, provide members with the ability to move freely between different workspaces without the hassle of logging in repeatedly. After connecting at their home location, they can securely access WiFi at any other site within the same network—streamlining the user experience and supporting the flexible, mobile nature of modern work.  

Beyond connectivity, this technology also offers valuable insights for operators. By tracking member movements across locations, operators can gain a deeper understanding of who is using their spaces and how. This data allows for smarter decision-making, from optimising space usage to improving member services. Additionally, these technological tools enable operators to deliver a more personalised experience, identifying member preferences and adjusting the workspace environment accordingly.  

Ultimately, as coworking operators continue to embrace technology, they are not only enhancing operational efficiency but also creating more adaptable, user-friendly spaces that cater to the demands of the modern workforce. This seamless integration of tech and connectivity will remain a driving force behind the growth and evolution of the German flex market in 2025 and beyond. 

The future of coworking in Germany 

As Germany prepares to host major industry events in 2025, including Coworking Europe in Berlin, the COWORK conference, the inaugural German Coworking Prize. and #ZukunftCoworking in Cologne, the market is set for further evolution. 

Looking ahead, Germany’s coworking market will continue to evolve as new trends emerge. For operators to thrive, embracing flexible leasing models, designing workspaces that foster both collaboration and focus, and leveraging technology for better connectivity will be key. The German flex market is on track to lead Europe in shaping the future of workspaces.