2022 Flex Office Changing Workplace
Occupiers’ Changing Use of Flexible Space Change in Occupier Space Mix
• Prior to the pandemic, occupiers were exploring a strategy mix of core and flexible office to meet workplace needs. The most aggressive estimates were looking at a 70/30 split, with 70% of space being main corporate offices with traditional, longer-term leases and the remaining 30% leveraging flexible office space. • Post-pandemic, some occupiers may look to alter that ratio and potentially end up somewhere more like 60/40 or even 50/50.
• Traditionally, one of the ways occupiers used flex space was to fill the “spoke” locations in a hub-and-spoke model. • In the future, flex office may be part of the hub (or core office). For example: o An occupier taking space for a new headquarters could take less space and expect the landlord to offer a flexible option in the building to enable the occupier to flex up and down as needed. (A great example of this is 22 Bishopsgate in London.) o In a competitive market, an occupier with an existing headquarters which is too large for their future needs could consider flexible office as an option for any excess space . The key benefits to that approach are straightforward. It is easier for the occupier to take space back, if needed, when they need it, and the occupier may be more likely to fill the space than if they utilized a traditional sublease. Other benefits for large corporates who use this type of solution might be to encourage partners or suppliers to co-locate in their offices. Additionally, shared space could support smaller start up businesses in the occupier’s sector, giving them an early opportunity to invest in the future disruptors of their business. Example, Barclays Rise
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