2022 Flex Office Changing Workplace

ENTERPRISE DEMAND REBOUNDING, NOT WANING

After steep declines in office demand at the beginning of the pandemic , interest in space accelerated in the middle of 2021. This has led to significant increases in office leasing in Q2 and Q3. However, uncertainty about the future of workplace footprint needs has led some occupiers to be hesitant to make long-term commitments. For those organizations, flexible office is a short-term (and potentially medium-term) solution to help rationalize corporate real estate portfolios until the “new normal” of office is clearer. In Australia, as an example, The Instant Group reports that flexible space interest is skewing towards enterprise users. In Q1 2021, a record 18% of all flexible space inquiries were for 10+ workstations, whereas demand for 1-2 person offices dropped by 14 percent year over year (YoY).

TRENDS IMPACTING THE FLEXIBLE OFFICE MARKET