Is co-working really a disruptive force that could change the way occupiers use space? According to Instant Offices latest report ‘2017: The Year of Flexible Workspace’, it appears it already has.
The report takes a look into insights and commentary on the increasing demand for flexible space, market growth predictions, landlords and their approach to flexible space, the kinds of companies looking at flexible space, whether the industry has enough support and the future of the industry as a whole.
The Biggest Story in Property Right Now
Co-working and hybrid space has doubled globally since 2013 and now accounts for a third of all flexible space across the world. In the UK alone, the market is estimated to include about 52m sq. ft. of space with London accounting for 19m sq. ft. of that. Just last year, co-working space grew by double figures in the capital. With such rapid growth – occupier demand surpassed the growth of market supply last year – co-working and flexible space has been one of the biggest stories in property over the last few years.
Flexible Workspace Report Highlights
- What Has Changed in the Market?
Have major political and economic outcomes of the previous year affected the market? According to Beth Hampson, head of sales at LEO, “with different markets facing uncertainty, flexible office space becomes even more vital as it offers clients a solution for flexibility in both contractual terms and size of space”.
- The Demand for Flexible Space
Could the fact that flexible workspace is growing more than 15% YoY in the UK and even more across EMEA have anything to do with Millennials? According to Joe Gaunt, UK MD at WeWork, it could. He says, “there are 190m millennials in Europe who will soon inherit the workforce, and this new generation is concerned with finding meaningful connections in the places that they work and live”.
- Predictions on Market Growth
With the supply of co-working growing by double figures in central London city fringe markets in 2016, some experts are predicting that growth will spread from high-density city sites to satellite towns and rural locations.
- Are Landlords Adopting a More Flexible Approach to Co-Working Space?
With such a high demand for office space landlords are adopting a more flexible approach to remain competitive. According to Beth Hampson it can, in some instances, be more lucrative for them as they can offer a higher premium for shorter contract terms.
- What Kinds of Companies Are Looking at Flexible Space?
Tech companies were once thought to be the most suited to this kind of working but today all sectors are looking for flexible space. According to WeWork, entrepreneurs, start-ups and SMEs are often thought of as typical members, but there has been a dramatic increase in enquiries from mid-to-large-sized companies.
- Future of Flexible Office Space
Flexible workspace and co-working is now a worldwide phenomenon, and with increasing demand comes increasing competition. According to Richard Taylor from TOG, “the winners of the battle to attract and retain members will be the ones who offer something meaningfully different.”
Uncover all of the data and expert insights in Instant Offices’, 2017 The Year of Flexible Workspace.