2022 Flex Office Changing Workplace

Changes in Relationships: Landlords Flex Spaces Landlords are Providing or are Considering to Offer Across their Portfolios

Who Provides the Flexibility?

• Pre-pandemic, most flexible office space was structured with providers signing long-term leases and managing the space (i.e., a rent arbitrage model). • Landlords recognize flex’s increasing importance in their portfolios and want more control over the space in their buildings. They also want to be the one building relationships with the end customers. This is encouraging them to take on the risk of “owning” the flexible office in their buildings. o Owners experimenting with becoming the providers of flexible office space through their own brands. o Landlords interested in management agreements for flexible office in their buildings (i.e., a hospitality model). It is possible this is a short-term trend.

Light touch serviced offices

25%

31%

31%

14%

Spaces with co-working features

28%

17%

42%

14%

Short lease office spaces (<1 years)

33%

17%

33%

17%

Premium serviced offices

53%

11%

19%

17%

Flexible meeting spaces

69%

11%

17%

Currently Offering

Considering offering in the next year

Considering offering in 1-5 years

Not considering

Source: Essensys