The rise of the digital tenant: navigating flex space in the tech-driven era
In the dynamic landscape of corporate real estate, a “new” type of tenant has emerged from the surge in demand for more flexible workspace. The digital tenant has evolved from two major trends that have reshaped the modern workspace – global digital transformation and the rise of flex spaces in the tech industry.
The global digital transformation market, valued at a staggering $731.13 billion in 2022, is on a trajectory to witness a Compound Annual Growth Rate (CAGR) of 26.7% until 2030. This seismic growth is a testament to the pervasive integration of digital solutions across diverse sectors. Corporations, both large and small, are increasingly embracing digital technologies to boost efficiency, enhance customer experiences, and innovate their business models. As a result, the physical workspaces where employees operate are expected to seamlessly align with these digital strategies.
Tech companies are at the forefront of this digital revolution. They have embraced the hybrid working model and adoption flex workspaces with enthusiasm. This inclination is rooted in the inherent adaptability of flex spaces, allowing companies to navigate the fluid landscape of remote and office-based work seamlessly.
However, flex adoption has not yet taken place across every industry so flex space providers cannot guarantee continued growth. There are hurdles to overcome, with cultural fit concerns, cybersecurity issues, costs, and privacy/regulatory considerations topping the list of obstacles for corporations relying on flexible workspaces.
For flex space operators and landlords, understanding the implications of these challenges is crucial for sustained growth and success. Here are five key considerations shaping the world of flex spaces in the era of the digital tenant:
1. Reflecting corporate digital strategies
Flex spaces must align with corporate digital strategies, offering advanced technological infrastructure and digital services to meet digital tenant expectations.
2. Demand for digital amenities
The digital tenant expects amenities that support their work and lifestyle needs from high-speed internet connectivity to smart building technologies.
3. Reshaping workspace design and operations
Beyond technology, the influence of the digital tenant extends to the design and operational aspects of flex spaces. Adaptable workspaces, coupled with digital tools for efficient management and optimization, are becoming the new norm.
4. New standards for flexibility and efficiency
The digital tenant values flexibility not only in physical space but also in how they interact with and utilize that space. Flex space providers must embrace digital solutions to meet these dynamic needs and attract the digital tenant to their spaces.
5. Elevated security and compliance expectations
In an era marked by heightened awareness of data security and privacy, digital tenants demand robust cybersecurity measures and compliance with industry standards. Flex space operators must prioritize these aspects in their digital offerings to instil trust and confidence among tenants.
As the rise of the digital tenant continues to reshape the future of corporate real estate, flex space providers must ensure they have a strategy in place to deliver the desired workspace environment. Download the eBook or more insight on what they digital tenant wants and how to deliver that experience across your portfolio.
Find out more about how essensys software & technology can be used to drive better occupier experiences, remove complexity from your operations, and ultimately help you navigate and thrive through the market challenges.
Future of the office: trends in smart building technology
In a recent webinar, we were joined by WiredScore to discuss how smart buildings are shaping the future of office space.Read the article
How essensys helps operators thrive through best-in-class workspaces
We sponsored an IDC InfoBrief which explores five key elements that enable effective hybrid work and accommodate the changing needs of employees, management and space providers.Read the article