New Opportunities and Insights for Occupiers

Monday, January 1 , 2024

New Opportunities and Insights for Occupiers: Flexible Workspace Providers Prioritise Growth, Experience, and Sustainability

Location Expansion on the Horizon

The Instant Group’s latest Fixed to Flex 2024 Partner Survey reveals that 79% of global operators plan to expand their footprint. Despite economic challenges, this push for expansion highlights growing confidence in a wider range of flexible workspace products. For occupiers, this means more options in top markets.

In the U.S., 55% of operators plan to open up to five new locations, while 46% in the UK share similar goals. In EMEA, 91% of operators are targeting growth, with 52% aiming for one to two new locations and 39% for up to five. In APAC, 14% are looking to significantly expand by opening over ten locations. This expansion will provide occupiers with greater opportunities to find flexible, tailored workspaces that meet their evolving needs.

 

Changing Space Utilisation and Rates

The way occupiers use flexible spaces is evolving. The UK sees longer lengths of stay compared to the rest of the world, with almost 60% of operators reporting tenants staying three-to-five years. Occupiers are also diversifying how they use space, increasing demand for meeting rooms, private offices, and event spaces.

Last year, while costs soared, fewer than 20% of operators passed those expenses on to their customers. This year, the pressure is mounting and as a result, 69% of operators plan to raise rates. Occupiers should be mindful of potential price adjustments as operators navigate rising costs and fluctuating demand, which will vary by market. While prices may increase, operators are addressing market challenges by working towards expanding their product offerings and enhancing services to deliver a more premium experience.

 

The Undeniable Value of Hospitality

For occupiers, the appeal of flexible workspaces extends beyond cost. 70% of operators believe that the quality of their staff is the primary reason customers choose their spaces, emphasising the importance of friendly and helpful personnel. Other factors, such as a trusted brand and accessibility to public transport, also play a role, but customer service remains key.

Other factors, such as trusted brands and good transport links, are important, but hospitality continues to shape occupiers’ decisions. Teams and individuals value flexible spaces for more than just cost savings, appreciating enhanced work-life balance and networking opportunities.

 

Gaps in Sustainability

Sustainability remains a growing priority for businesses in their workspace decisions. While 44% of global operators have noticed increased demand for sustainable features, there’s still a gap between what operators and occupiers see as meaningful sustainability efforts. For instance, 35% of operators highlight recycling policies, but businesses are also placing strong emphasis on broader initiatives like renewable energy and sustainability certifications.

Occupiers are seeking more transparency and accountability from their workspace providers, with many finding it challenging to get accurate sustainability data. As regulations tighten, this demand will continue to grow, pushing operators to invest more in sustainability efforts.

 

Looking Ahead: What Occupiers Should Consider

For businesses considering flexible workspace options, key takeaways include:


  • More Choices in Prime Locations: Expect more options as operators expand, particularly in major cities.
  • Adaptability to Evolving Needs: With short or long stay durations and diversified space usage, flexible workspaces are adapting to meet varied needs.
  • Customer Experience Matters: Choose spaces that prioritise hospitality and customer service.
  • Growing Focus on Sustainability: Ask about sustainability practices and ensure they align with your company’s values.

 

Flexible workspaces are continuously evolving to meet the needs of occupiers. By staying informed and proactive, businesses can make the most of the dynamic market landscape and secure the best fit for their needs.

Read our full 2024 Global Partner Survey Report here.

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