Flexible working is expanding at a rapid rate. In 2017, JLL released a report saying 30% of corporate real estate would comprise flexible workspace by 2030. In the same year, CBRE released its own report, estimating growth at 13% per annum. It’s clear that an ever-smaller number of businesses are using the traditional model of office workspace, instead relying on more dynamic options.
There are several reasons for this shift, with the first attributed to growth of technology. Within two years, 80 per cent of the world’s population will own a smartphone, and 4G will represent 61% of the total internet connections (up from 34% in 2016). Workers will be able to connect from anywhere in ever-increasing numbers.
Second, the ability to work whenever, and wherever, helps boost employee productivity. Research carried out by global workplace provider Regus shows that the most popular reason behind the growth of flexible working (chosen by 61% of respondents) is employees desire for a greater work-life balance. Decreased commutes, as provided by being able to work from anywhere, improves this balance, while increasing job satisfaction – which in turn increases productivity.
Finally, businesses are also seeing the cost savings of flexible working versus fixed real estate, which can reach up to 75%. For business leaders, the appeal of a flexible workspace strategy is clear – a reduction in overheads and an offset of risk.
Landlords and property owners should see opportunity in the flexible workspace revolution too. It offers distinct advantages over traditional office deals – not least because without having to negotiate lengthy leases, arranging deals takes much less time. Flexible working contracts are often simple rolling contracts or subscriptions, which are much more manageable.
The easiest way landlords can ensure they’re keeping up with this workplace revolution is by getting involved now. This doesn’t mean abandoning conventional, long-term leases completely, but rather adding flexible workspace to their existing portfolio. Alternatively, they can offset risk by leasing to a third-party provider of flexible workspace, combining the security of a long-term lease with the flexibility that short-term tenants offer.
Adding this kind of co-working community to a portfolio has ramifications far above a single building – it can revitalise real estate across the wider area. As well as meeting the needs of companies and staff alike, a vibrant co-working centre with a changing cast of energetic entrepreneurs will have knock-on benefits for the surrounding community.
The workspace revolution is approaching a tipping point, and the imminent opportunities for smart, fast-moving businesses and property owners are clear.
With a range of office formats, as well as growing mobile, virtual office, and workplace recovery businesses, Regus is the world’s largest provider of flexible workspace. Customers include successful entrepreneurs, individuals and multi-billion-dollar corporations. For more information visit regus.co.uk
1 Workspace, Reworked, JLL, 2017
2 CBRE Research, 2017: THE FLEXIBLE REVOLUTION Insights into European flexible office markets
3 Regus GBS, 2015
4 CBRE Research, 2018: UK Landlords & Investors Embrace the Flexible Revolution
