Flexible Office for the Evolving Workforce

What does this all mean? The Future of Flexible Office

• In a post-pandemic work environment, flexible office has emerged as a leader in delivering solutions to a hybrid workforce for both occupiers and landlords. Hybrid work will continue to be a preference of workers who prioritize flexible work arrangements, therefore, companies will continue to incorporate that flexibility into their space planning. • Flexible office has become a significant part of many occupiers’ considerations as they continue to rebalance their space req uirements to fit their evolving workforce. As occupier needs evolve, flexible office operators and landlords will continue to respond by redesigning space to fit their needs, including flexible lease options and terms. • Landlords with large vacancies in their buildings will continue to consider flexible office options. While most plan to deliver flexible solutions themselves, many will consider partnering with or leasing space to a provider. It is estimated that flexible office will account for 20-30% of total office space by 2030 based on multiple forecasts. C&W estimates that the actual share will be much smaller. • Challenges, including increased operating costs and rapidly changing user preferences, mean that providers need to respond to and adapt their offerings quickly. Healthy demand has helped operators adjust, even while passing some costs to users. • Tech layoffs, which began in 2022 and have continued in 2023, may impact demand. Tech companies are important users of flexible space, especially in Asia where, according to Statista, tech comprises approximately 29% of the business sector. • The current difficult economic environment is introducing uncertainty to corporate business plans. However, while this may impact overall spending plans of providers and landlords, the flexible office sector is likely to benefit from cost cutting. As companies slow down hiring and reduce space, flexible office becomes a critical part of their planning. Recent coworking estimates forecast growth through the next five years with total market size forecast to double by 2027.