Flexible Office for the Evolving Workforce

Lease Flexibility is Paramount Expectation for lease flexibility and agility over the next five years

Occupiers Expect Flexibility

• A recent survey of occupiers and owners points to some disconnect between the two groups. • Both believe that shorter leases will continue to be preferred in the next five years. However, more owners than occupiers feel that there will not be any change to lease structures in the next five years. • Occupiers will continue to strategize their lease sizes, locations and terms over the next five years. Flexible office can bridge the gap for both owners and occupiers.

Landlords Occupiers

40%

30%

20%

10%

0%

Shorter average lease lengths

Adjustable space (ability to grow/ shrink footprint within a single contract)

Shorter periods between breakclauses

Flexible leases with rolling monthly contracts

No change to flexibility/agility of leasing

Based on a survey of 285 respondents comprising office occupiers, landlords and third-party advisors.

Source: The Instant Group, ULI, 2023 Forecast