Coming of age: Is demand for flexible workspace changing the office market?

Abstract

The office market or ‘workspace’ is undergoing radical change. A model that has altered little for decades and has been serviced by a relatively small pool of companies is finally evolving, and at speed. Since the global financial crisis of 2008, there have been two key factors driving significant change: first, corporate occupiers no longer feel compelled to embrace the traditional long lease model and, secondly, growth of the contingent workforce is re-shaping the way in which people work. These changes are being driven by technological advances that are bringing workforces together and, as such, are of global significance rather than being restricted to Europe or the USA. The flexible workspace has arrived and has the potential to change the way in which offices are procured and delivered forever. Within this context, this paper will examine the coming of age of the flexible market, a segment of the traditional commercial office world that has developed significantly over the last decade. The paper will review the demand driving the market, particularly from the corporate occupier base, and the evolution of the sector. It will demonstrate how a single solution model, with its roots in the serviced office/executive suite market, has now evolved into a much wider, client-oriented, delivery platform, manifested in serviced space, co-working environments, collaborative hybrids and outsourced managed workspaces.