Flexible office spaces prove popular amongst UK landlords
Hand-in-hand with the upwards trend of more employee-centred working environments and schedules, 95% of UK landlords expect flexible workspaces to become more and more common. The findings come from a recent report by commercial real estate firm world leaders, CBRE.
Co-working spaces and flexible work more popular than ever
Around 589,000 start-ups were registered in 2017 and the move into flexible working has proven popular across the British workforce.
These kinds of office solutions work through a landlord renting out a shared, equipped facility to several businesses on a flexible basis. They make an ideal option for businesses seeking to avoid long leases and escalating rent and provide companies who need to scale up or down quickly the adaptable space to do so.
79% of landlords surveyed are preparing to launch a flexible workspace within the next year to take advantage of the demand.
What does this mean for landlords?
As a landlord, you’ll reap benefits from tenant flexibility. 39% of those surveyed listed the potential to retain tenants as their businesses grow and develop as a key advantage. Flexible contracts and terms mean start-up businesses – many of which have big potential for growth – may be more likely to sign a contract, and flexibility can be enjoyed by both parties.
Most commercial leases allow for rent to be reviewed every three to five years, whereas flexible office space means these terms will likely allow leases to be streamlined and simplified.
Nearly 60% of organisations said that using flexible office spaces have benefited their business – and there is an appetite for more. Commercial property group Workspace saw its annual profits almost double from letting flexible spaces, while John Duckworth, Managing Director UK & EMEA at flexible workspace provider The Instant Group, says the firm is seeing an increase in interest from larger corporations, with ‘larger desk size enquiries increasing by a quarter every year for the last three years.’
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