This year's downturn resulted in flex office becoming a strong alternative to traditional leases for many office-using companies requiring agility. As a result, flexible office space is no longer viewed as a niche sector but as a strategic solution for a broad range of companies, according to a new report by CBRE.

As this shift unfolds, new models are beginning to emerge. Alliances between flexible office operators and building owners have formed, new markets are being explored and new business structures are being developed to engage office users.

In the first half of 2020, only 1% of flex space was closed from an operational standpoint. The sector held its own amid pandemic-related lockdowns and the resulting recession. Though the sector's annual growth in square footage slowed to 7% as of the second quarter from 41% in the prior year, closures have been fewer than anticipated. This is due to several factors including those enterprise tenants that moved to short-term lease renewals as future headcount requirements remain uncertain.