By Andrew Levey
FLEXIBLE OFFICE MARKET TO BE WORTH AROUND $111.68 BILLION BY 2027
Research analysts Zion Market Research recently estimated that the flexible office market is likely to be worth over $111 billion by 2027, with a CAGR of 17.1% in the coming years.
The estimation is based on an increase in the number of employees working away from a corporate head office to reduce travelling hours and increase employee satisfaction, while boosting their work efficiency and productivity. In addition to working from home, the report points to flexible offices being key to providing employees the technology and environment they need, as well as providing large corporates more local options to build new business relationships.
LONDON OFFICE SPACE TAKE-UP REACHES HIGHEST LEVELS SINCE PANDEMIC
Data from CBRE showed Central London office take-up totalled 815,700 sq ft in August, a 63% rise on the previous month. While still below the 10-year monthly average of 1 million sq ft, Rob Madden, Head of Offices for CBRE UK commented to the Evening Standard that the London office market “is making real strides in its recovery as confidence returns and companies continue to enact their return-to-work policies.” A number of large pre-let deals helped elevate the figures, including law firm Travers Smith’s acquisition of 15,400 sq ft at Stonecutter Court.
The report also showed that under offers are continuing to rise, ending the month 16% above the 10-year average, while active demand declined from 7.4m sq ft at the end of July to 6.9m sq ft in August.
COMPANIES RETHINKING OFFICES TO ATTRACT WORKERS
The Financial Times recently covered how companies are rethinking their office spaces to compete with homes and other locations as attractive places to get work done. The article spoke to corporates to find out how they’re tackling this for their business, as well as space providers on what they’re seeing in their markets. Some interesting themes emerge, including:
- Using savings from reduced office footprints to invest in better spaces, more aligned to a fun and engaging experience.
- Reconfiguring spaces to provide more unallocated spaces for people to sit and work, and more differentiation between “me time” and “we time”.
- What office spaces can offer in terms of technology, wellness and sustainability.
- Local meeting room availability so employees local to each other can collaborate outside of the head office.
- Ensuring employees who don’t have appropriate space to work at home, have a local option where they can work.
As companies strive to find the balance between attracting employees into the office and delivering the flexibility they’re asking for, office space providers with premium experiences and technology will stand out from the crowd.