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Insights

Flexible Office in the Changing Workplace

The following report examines the current state and the expected future of the flexible office sector for landlords, occupiers, and operators / providers across five themes.

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Trends Impacting the Flexible Office Market

After flying high for years, flexible office and coworking were negatively affected by the onset of the pandemic. However, short- and medium-term trends among occupiers and landlords are favoring growth in the sector. The following report examines the current state and the expected future of the flexible office sector for landlords, occupiers, and operators / providers across five themes. 

  1. Short-Term Challenges to the Sector 
  2. Fundamentals Beginning to Look Up 
  3. Enterprise Demand Rebounding, Not Waning 
  4. The Long-Term Future of Workplace Ecosystems Includes Flexible Office 
  5. Changing Dynamics Between Landlords, Occupiers & Flexible Office Operators 

Key themes in our 2022 Flexible Office in the Changing Workplace report: 

After a severe and quick drop-off, much of the economy is on its way to recovery. Office-using employment, in particular, is rebounding around the globe, having surpassed pre-pandemic levels in many markets, including Toronto, Tokyo and London. Office usage, however, has been uneven amidst various spikes in the pandemic. However, flexible office provides a solution that is complementary to the needs of a more agile workforce.

Uncertainty about the future of workplace footprint needs has led some occupiers to be hesitant to make long-term commitments. For those organizations, flexible office is a short-term (and potentially medium-term) solution to help rationalize corporate real estate portfolios until the “new normal” of office is clearer. Currently, 38% of occupiers are providing employees with access to flexible workspaces, and over half are planning to increase employees’ access.

Employees’ expectations for the office are changing in light of increased agile work arrangements during the pandemic, and expected post-pandemic. Office workers indicate less of a willingness to commute long distances to get to the office every day, which provides a potential opportunity for flexible office to provide office space closer to where employees live. Additionally, the role of the office is moving towards creativity, innovation, connection and culture; all things that flexible office can play a positive role in providing.

Read on
Read more about these key themes and what to keep an eye on for the future of flex in the full version of the report.
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