thursday, february 15 , 2018

Our latest report delves into the evolution of the workspace market from the perspective of landlords, operators, corporate occupiers and end users.

The growth of flexible workspace has altered the way that companies are procuring and utilising space. Our latest market report, commissioned in collaboration with workplace consultancy HLW, examines the evolution of this market from the perspective of landlords, operators, corporate occupiers and end users.

The rapid increase in the number of flexible workspace options is undeniable but we wanted to discover exactly how it is impacting users of this space and those that provide it.

Many of the respondents cited greater work flexibility, expanding professional networks, business opportunities and greater levels of energy at work as some of the many reasons companies are now seeking flexible space as a primary option.

Positive impacts from the development of flexible space and co-working included:

  • Landlords cited increased property values, better offerings for tenants and ability to attract new tenants as benefits of flexible space.
  • Operators quoted the ability to attract enterprise customers, better service offerings and more ways to offer flexibility to customers.
  • Corporate occupiers benefited from flexibility for employees and reduced real estate costs.
  • End users of smaller businesses found the flexibility of how they work, the networking opportunities and expanded professional network as the main positive impacts of working within flexible space

Corporates are flexing

Corporate clients are also reporting significant benefits from flexible workspace; albeit, they are coming at the market from different angle.

Nearly 60% of corporates believe that flexible workspace has benefitted their business in one way or another by giving them something they’ve not had before; agility and flexibility.

Corporate are revelling in the choice that the flexible workspace market provides.

“There has been much conjecture around just how much and why larger organisations are using flexible space. Our data shows that the number of corporate clients using flex space is growing with larger desk size enquiries increasing by a quarter every year for the last 3 years.

“The benefits are quite clear, in that flex space gives companies a different route to market and one that is more adaptable in the short term. But there are other advantages that are coming to light, not least the need to give workers greater choice in location and the tangible improvements in productivity that result by offering them flexibility around the type of workspace they use”
John Duckworth, MD of UK & EMEA for The Instant Group

How is demand shaping flex workspace?

'The growth of flexible workspace is having a positive impact on how people work' - 72% of survey respondents including operators, landlords and corporates agree.

The areas which they feel the market can improve include; workplace design, community values and service improvements within flexible and co-working spaces.

The areas in which they feel the market offer can improves is; workplace design, community values and service improvements within flexible and co-working spaces.


What does the future hold?

Our research shows that those using flexible workspace will continue to do so - and even encourage others to explore this increasingly popular option.

There was a clear understanding that organisations are seeking a more agile approach when it comes to workspace, and this is a trend that is growing year by year and is viewed by the market as an option for the long-term.   

Lease lengths are now, on average, at 5.2 years whilst some operators, for example The Office Group, have an average tenure at around 36 months. The gap between “flexible space” and “conventional” is closing.


Read the full report                             

Download our full report to explore more about the drivers of the industry, what companies want from their office and want and what the future holds for flexible workspace.


Download here >


see also...
next insight piece
What global cities are leading the flex revolution?
The Instant Group have released their latest report ‘The Global Flex Market: The top 18 markets for flexible workspace in 2019’ detailing the key global cities that are leading the way in the flex market for 2019 and beyond.