Hybrid work has firmly taken root in Australia. About 36% of workers now work from home on a regular basis, compared with only 5% before the pandemic. Research from the Australian HR Institute shows that this pattern has stabilised rather than declined, with most employers acknowledging hybrid arrangements as a long-term fixture. The reality is simple, people are no longer in the office every day, and when they do come in, they want the experience to be intentional and worthwhile.
This shift has reshaped expectations around office design, location, leasing and technology. In 2026, businesses, especially SMEs, are no longer looking for fixed floors of empty desks. They are searching for shared office space that supports collaboration, offers genuine comfort, and makes hybrid work easier rather than more complicated. For the business owner, understanding these new priorities is essential in staying relevant to the next generation of tenants.
Hybrid Work Has Redefined What Offices Are For
Hybrid work has changed the purpose of the office itself. It is described as a three-dimensional model involving location, time and modality, with each aspect influencing how employees interact with their workplace. Studies led by economist Nicholas Bloom also show that hybrid work can reduce quit rates by about a third while maintaining or improving productivity levels.
This creates a fundamental change. The office is no longer a mandatory daily destination. Instead, employees arrive for specific reasons, team workshops, strategy sessions, problem-solving, project kick-offs, mentoring, or simply reconnecting. The shift towards purpose-based office attendance is driving a new wave of expectations around what a modern shared office should look like and how it should operate.
1. Flexible Leasing Becomes the New Standard
One of the clearest outcomes of hybrid work is the decline in appetite for long leases. The global flexible office market was valued at USD 39.6 billion in 2024, with forecasts predicting significant growth to 2032. JLL reports a strong move toward ready-built, plug-and-play suites, especially among small businesses looking to avoid the cost and time of designing and fitting out their own office.
Rather than making five-year commitments, businesses now favour environments they can adjust as needed. A team hiring five employees this quarter may scale back next quarter, or vice versa. Hybrid work has created natural fluctuations in office attendance, and companies want agreements that allow them to respond quickly. For operators, this means designing spaces that can be reconfigured without major construction, offering private rooms that can expand, split or evolve with shifting team sizes.
2. Spaces Built Around Activities, Not Desks
Another defining priority for 2026 is the move away from uniform desk layouts towards spaces built for specific tasks. Hybrid teams rarely come to the office to sit in silence next to each other. Instead, they want areas that help them collaborate, think and work in ways that are difficult to replicate at home.
This trend shows that companies are now measuring “effective space” instead of just square metres. In practice, this means modern shared office environments are being shaped by a mix of collaborative rooms, informal lounges, private focus booths, project studios and multifunctional meeting spaces. When teams gather, they want rooms that support both in-person and remote contributors, allowing discussions to flow naturally whether half the team is on-screen or onsite.
The shift is clear, employees expect the office to offer something their home setup cannot. Rows of identical desks no longer deliver value, purpose-built zones do.
3. Technology Moves from Nice-to-Have to Core Infrastructure
Hybrid work is powered by technology, and when that technology fails, the entire workplace experience suffers. A modern flexible office space must be equipped to support seamless video conferencing, highly reliable internet and intuitive digital tools.
The essentials include conference rooms with strong audio and visual equipment, stable high-speed connectivity that can accommodate multiple video calls at once, secure networks that protect sensitive work, and user-friendly systems that help people book meeting rooms without friction. Companies are using technology not just to support hybrid meetings, but also to understand how spaces are being used throughout the week.
In a shared office, technology is no longer a supplementary feature, it is part of the backbone that enables collaboration. Tenants expect it to work quietly in the background, so the workplace remains a help, not a hindrance.
4. Human Experience and Wellbeing Take Centre Stage
Another shift emerging from hybrid work is the growing focus on wellbeing. With the option to work from home, employees will only come to the office if the environment feels better than staying where they are. This highlights how hybrid arrangements can ease commuting stress but can also create new pressures around digital overload and blurred boundaries.
As a result, the office must provide an experience that supports comfort, clarity and calm. Natural light, greenery, acoustic management and ergonomic furniture all play a role in creating spaces people genuinely want to spend time in. Equally important is the social experience. Hybrid workers value offices that offer meaningful interaction, chance conversations, shared meals, and community events that rebuild connection after long periods of remote work. In 2026, the shared office that wins tenants is the one that feels both functional and human.
5. Location Choices Shift with Hybrid Patterns
Hybrid work has also loosened the longstanding dominance of CBD towers. Many workers now design their week around shorter commutes and personal commitments, and that shift shows up in property preferences. This behaviour supports a growing preference for flexible office space located in suburban hubs or inner-city fringe areas, places where people can arrive more easily, run errands, meet colleagues for coffee, or attend appointments before or after work. These districts offer a blend of convenience and culture that feels more compatible with hybrid life than traditional central business districts alone.
6. Space Efficiency and Cost Discipline Matter More
Hybrid work exposes inefficiencies quickly. If employees are only in the office two or three days a week, companies will not pay premium rents for empty floors of unused desks. Global utilisation studies show that office attendance is still far below pre-pandemic levels.
This has driven many businesses to right-size their footprint. Flexible offices offer a cost-effective alternative by reducing the need for privately owned boardrooms or large staff areas. Amenities such as breakout spaces, cafés, meeting rooms and end-of-trip facilities are shared across multiple tenants, allowing operators to spread costs in a way individual tenants cannot. For SMEs in particular, this approach provides access to high-quality amenities without the overhead of managing them alone.
What This Means for 2026 and Beyond
The overall trend consistently shows that hybrid work is here to stay. At the same time, the flexible office sector is expected to accelerate throughout the decade, driven by shifting tenant expectations and economic pressures.
For property owners and operators, the message is clear: tenants want agility, purpose-built design, seamless technology, wellbeing-focused environments and locations that fit modern life. A shared office today must do far more than provide a desk and Wi-Fi. It must help people work better, feel better, and collaborate more meaningfully. In 2026, the shared offices that succeed will be those that understand hybrid work not as a challenge, but as an opportunity to rethink what the workplace can be.
About the author
Esther – Sales & Marketing Manager at United Co. – has been involved in the shared workspace and flexible office industry for over 8 years. Esther has seen the industry evolve and is passionate about helping businesses find the right workspace solutions to help their team grow. When not at work, she is out exploring the Melbourne food scene.
