How Pacific Workplaces Is Turning Flexible Office Into a 25% IRR Real Estate Strategy

In this episode of Groundbreakers, we’re joined by Ben Wright, Chief Growth Officer at Pacific Workplaces, one of the West Coast’s most established flexible workspace platforms.While many investors wrote off office after the WeWork collapse and the rise of remote work, Ben shares why the real story is just beginning. Pacific has quietly built 16 profitable locations over 23 years, with a differentiated model that combines flexible workspace, virtual offices, meeting rooms, and service-based recurring revenue.We dive into why San Francisco’s AI-driven rebound, changing workplace behavior, and landlord demand for flexible operators are creating one of the most overlooked opportunities in commercial real estate today.Ben also breaks down Pacific’s expansion strategy, how they’re underwriting new locations, and why their latest fund is targeting a 10% preferred return and 25% net IRR over a 5–7 year hold.Key Points DiscussedWhy flexible workspace is still only ~3% of the office marketHow Pacific generates 32% of revenue outside of desksWhy virtual office products are an underrated cash flow driverThe macro tailwinds from AI and San Francisco’s recoveryWhy landlords increasingly want flexible workspace partnersHow Pacific’s newest SF location hit 30% leased before openingThe investment thesis behind their 6–10 location expansion planWhy flexible workspace may become an institutional CRE asset classGuest InformationName: Ben WrightRole: Chief Growth Officer at Pacific WorkplacesWebsite: PacificWorkplaces.comLinkedIn: Ben WrightConclusionBen’s perspective is a refreshing reminder that the office market isn’t disappearing, it’s evolving.Rather than betting on outdated long-term lease models, Pacific Workplaces is building around how modern teams actually work: hybrid schedules, smaller footprints, flexible meeting needs, and service-driven convenience.For investors looking for differentiated cash-flowing real estate opportunities, this episode offers a compelling look at why flexible workspace may be one of the most misunderstood and asymmetric bets in CRE today.