Manhattan, NY, was the market where renting an office was most expensive in the United States in 2023. The average annual quoted square footage rent of office space was close to 80 U.S. dollars in the fourth quarter of the year. Only one other market - East Bay - came close to this rental rate. In Washington D.C., the market with the second-largest inventory of class A downtown offices, the annual rent amounted to approximately 59 U.S. dollars per square foot. Since the onset of the coronavirus pandemic, the office real estate sector has been suffering an increase in office vacancies, affecting both downtown and suburban properties.

The Global Office Real Estate Market Report is Segmented by Geography (North America, Europe, Asia-Pacific, Middle East & Africa, Latin America, and the Rest of the World). the Report Offers the Market Sizes and Forecasts for the Office Real Estate Market in Value (USD) for all the Above Segments.

San Francisco's office rental market showcases significant variation across its submarkets, with Mission Bay commanding the highest rates at 138 U.S. dollars per square foot in the third quarter of 2024. This premium location demanded nearly double the city's average rate, highlighting the stark differences in desirability and demand within the city's commercial real estate landscape. Economic powerhouse The San Francisco Bay Area's economic prowess is evident in its impressive economic growth over the past 20 years. The city's strength is fueled by the presence of major technology companies and a thriving startup ecosystem. The region's economic significance extends beyond local boundaries, contributing substantially to California's position as the state with the highest GDP in the country. This economic vitality helps explain the sustained demand for office space across various San Francisco submarkets. Offices: global context and market trends In a global context, San Francisco's office rental rates are relatively high but not the most expensive worldwide. In 2024, London, Hong Kong, and New York emerged as the top three most expensive office rental markets globally. Over the past five years, San Francisco has experienced a decline in office rents. This trend aligns with broader shifts in the office real estate sector, influenced by the COVID-19 pandemic and the rise of hybrid work. Despite these challenges, certain San Francisco submarkets like Mission Bay and The Presidio continue to command premium rates, reflecting their enduring appeal to commercial tenants.

The Report Covers US Office Real Estate Sector Outlook & Industry Trends and it is segmented by region (northeast, Midwest, south, and west) and by sector (information technology (it and Ites), manufacturing, bfsi (banking, financial services, and insurance), consulting, and other services). The market size and forecast are provided in terms of value (USD billion) for all the above segments.

The Report Covers United States Office Space Companies and it is Segmented by End User (Personal User, Small Scale Company, Large Scale Company, and Other End Users), Type (Flexible Managed Office and Serviced Office), Application (Information Technology (IT and ITES), Legal Services, BFSI (Banking, Financial Services, and Insurance), Consulting, and Other Services). The report offers market size and forecast in value (USD billion) for all the above segments.

The Report Covers North America Real estate Development Trends and it is segmented by Sector (Information Technology [IT and ITES], Manufacturing, BFSI [Banking, Financial Services, and Insurance], Consulting, and Other Sectors) and Geography (US, Canada, and Mexico). The report offers the market size and forecasts in value (USD billion) for all the above segments.

Italy's Office Real Estate Market Report is Segmented by Key Cities (Rome, Milan, Naples, Turin, and Other Cities). The Report Offers Market Size and Forecasts for the Italy Office Real Estate Market in Value (USD) for all the Above Segments.

The India Office Real Estate Market Report is Segmented by Major Cities (Bengaluru, Hyderabad, Mumbai and Other Cities). The Market Size and Forecasts are Provided in Terms of Values (USD) for all the Above Segments.

In Texas, Austin was the most expensive market for office space in the second quarter of 2024. The rental rate of class A offices was nearly 52 U.S. dollars per square foot, compared to 26 U.S. dollars per square foot for El Paso. Dallas, which is the largest office real estate market in the state, had rental rates of about 30.3 U.S. dollars for all classes and 35.7 U.S. dollars for class A offices. In the United States, Manhattan, San Francisco, and Silicon Valley-South Bay fetch the highest office rental rates.

India's Flexible Working Office Space Market Report is Segmented by Type (Private Offices, Co-Working Space, and Virtual Offices), by End User (IT and Telecommunications, Media and Entertainment, Retail and Consumer Goods, and Others), and by City (Delhi, Mumbai, Bangalore, Hyderabad, Pune, and Rest of India). The Report Offers Market Size and Forecasts for India's Flexible Office Space Market in Value (USD Billion) for all the Above Segments.

Bahrain Co-Working Office Space Market Report is segmented by end user (personal user, small scale company, large scale company and others), by type (flexible managed office and serviced office) and by application (information technology (IT and ITES), legal services, BFSI (banking, financial services and insurance), consulting and other services). The report offers market size and forecasts for Bahrain Co-Working Office Space Market in value (USD) for all the above segments.

​Japan office real estate market size reached USD 20.7 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 31.55 Billion by 2033, exhibiting a growth rate (CAGR) of 3.87% during 2025-2033. The increasing emphasis on sustainability as well as environmental, social, and governance (ESG) initiatives, which lead to a greater demand for green and energy-efficient office spaces, is driving the office real estate market.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on property type, rental model, and classification.

The global commercial real estate market size reached USD 7.5 Trillion in 2024. Looking forward, IMARC Group expects the market to reach USD 9.8 Trillion by 2033, exhibiting a growth rate (CAGR) of 3.08% during 2025-2033. The market is primarily driven by the favorable economic conditions, the emerging trend of urbanization, the rising middle class, the ongoing technological advancements, and the expanding tourism and hospitality sectors.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country level for 2025-2033. Our report has categorized the market based on type and end use.

United States Coworking Office Space Market size was valued at USD 2.0 Billion in 2023 and is projected to reach USD 4.57 Billion by 2031, growing at a CAGR of 10.9% from 2024 to 2031.

Key Market Drivers:

Key Market Drivers:
Accelerating Remote Work Culture: The shift towards hybrid and remote work models is fundamentally transforming the workplace preferences, driving professionals to seek flexible workspace solutions. According to the U.S. Bureau of Labor Statistics’ 2024 report, 27.2% of employed persons did some work from home on an average day.

Rising Entrepreneurial and Startup Ecosystem: The startup ecosystem continues to flourish, creating sustained demand for flexible office solutions that offer scalability. These spaces are providing essential infrastructure and networking opportunities for emerging businesses. Coworking environments reduce initial capital expenditure and operating costs for new ventures.

The German Office Real Estate Market is Segmented by Key Cities (Berlin, Hamburg, Munich, Cologne, and Other Cities). The report offers market size and forecast in value (USD billion) for all the above segments.

Spain Office Real Estate Market Report is Segmented by Key Cities (Madrid, Barcelona, Valencia, Seville, and Other Cities). The Report Offers Market Size and Forecasts in Value (USD) for all the Above Segments.

The UAE Flexible Office Space Market Report is Segmented by Type (Co-Working Space, Serviced Offices / Executive Suites, Others (Hybrid, Virtual Office)), End Use (Information Technology (IT and ITES), BFSI (Banking, Financial Services, and Insurance), Business Consulting & Professional Services, Others), User (Freelancers, Enterprises, Start-Ups, and Others). The Market Size and Forecast are Provided in Terms of Value (USD) for all the Above Segments.

The report covers North America Flexible Office Market trends and it is Segmented By Type (Private offices, co-working space, and Virtual offices), By End User (IT and Telecommunications, Media and Entertainment, Retail and consumer goods), and By Geography (US, Canada, Mexico, and Rest of North America). The market size and forecast for North America Flexible Office Market are provided in terms of value (USD) for all above segments.

In the second quarter of 2023, the average rent for grade A office space in Beijing amounted to 315.8 yuan per square meter per month. The city was one of the major commercial hubs in China. Hence why rent for office space in Beijing was the highest among all cities in mainland China.

According to Cognitive Market Research, the global Serviced Office market size will be USD 35142.5 million in 2024. It will expand at a compound annual growth rate (CAGR) of 16.00% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 14057.00 million in 2024 and will grow at a compound annual growth rate (CAGR) of 14.2% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 10542.75 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 8082.78 million in 2024 and will grow at a compound annual growth rate (CAGR) of 2085.7% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 1757.13 million in 2024 and will grow at a compound annual growth rate (CAGR) of 15.4% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 702.85 million in 2024 and will grow at a compound annual growth rate (CAGR) of 15.7% from 2024 to 2031.
The Big brands dominate the serviced office market due to their established reputation, extensive resources, and ability to offer a wide range of services across multiple locations

Market Dynamics of Serviced Office Market

Key Drivers for Serviced Office Market

Rising Demand for Flexible Workspaces to Boost Market Growth

The demand for flexible workspaces has surged as businesses, especially startups and SMEs, increasingly seek cost-effective and scalable office solutions. Serviced offices provide a short-term commitment with flexibility in terms of space and lease agreements, which appeals to businesses with uncertain or dynamic needs. As companies focus on adapting to changing market conditions and workforce preferences, such as remote and hybrid working models, serviced offices offer an ideal solution. This flexibility allows businesses to avoid long-term leases, reducing overhead costs while ensuring access to professional facilities and services. For instance, In October 2021, Knotel, a US-based provider of flexible workspace solutions, acquired Deskeo for an undisclosed amount. This strategic acquisition strengthens Knotel's position in the flexible office space sector. Deskeo, based in France, is a leading provider of flexible and serviced offices tailored to the needs of enterprises

Shift Toward Remote and Hybrid Work Models to Drive Market Growth

The shift toward remote and hybrid work models has significantly contributed to the growth of the serviced office market. Many businesses have adopted hybrid work strategies, where employees work both from home and the office. Serviced offices cater to this shift by offering the necessary infrastructure for occasional office use, without the need for a permanent office setup. This model aligns well with businesses looking to support remote teams while maintaining access to professional office environments for meetings, collaboration, and business operations, fostering a greater demand for flexible workspaces.

Restraint Factor for the Serviced Office Market

High Rental Costs in Prime Locations, will Limit Market Growth

One of the major restraints in the serviced office market is the high rental costs, particularly in prime urban locations. Serviced offices often come with premium pricing due to their all-inclusive services, such as high-speed internet, utilities, and office management. While these offices are convenient for businesses, the costs can be prohibitive, especially for smaller companies or startups with limited budgets. This makes it difficult for certain businesses to justify the expense, potentially limiting the growth of the serviced office market in regions where rental prices are high.

Impact of Covid-19 on the Serviced Office Market

Covid-19 pandemic had a profound impact on the serviced office market, initially causing a decline in demand as businesses transitioned to remote work models and prioritized cost-cutting measures. Many companies reduced their office space requirements or temporarily closed physical offices, leading to decreased occupancy in serviced office spaces. However, as the global economy began to recover, the demand for flexible workspaces rebounded, driven by the increasing adoption of hybrid work models. Businesses began seeking s...