Flexible workspaces are no longer just for startups and freelancers. As companies are embracing hybrid work, flexible workspaces are becoming a popular solution to make that happen. More companies are now working in blended environments with some staying remote and some returning in-person. They bring greater flexibility, broader geographic coverage, and reduced costs to companies, which is why many companies increasingly choose them over traditional offices.
Workplace flexibility has been a key draw for workers for some time. Workers have repeatedly emphasized the importance of that flexibility and what it means for them as they choose jobs, decide whether to remain in a given position and try to balance work with their everyday lives. As a result, companies are investing more and more in creating interesting, custom-branded spaces.
But what is a flexible workspace and how does it help occupiers as they adapt to a hybrid work model?
Return to the Office
As the world moves on from COVID-19, working life has returned to many of the pre-pandemic norms. At least for the foreseeable future, the office will likely remain the hub of business activity. However, flexible work-from-home will allow many employees the convenience of skipping the commute a few days a week. The trend toward returning to the office will see millions of employees working in the office in person at least some days each month as many employers are embracing a flexible work-from-home model.
Some executives and leaders believe productivity increases when workers are in the office together, while others hope to increase in-person collaboration. If your business plans to introduce other measures that encourage flexibility in conjunction with a return to the office, such as hybrid work or alternative work schedules, announce this to employees as well.
What Are Flexible Workspaces?
A flexible office space is a type of workspace designed to provide employees with a variety of different places and ways to work. Unlike traditional offices with fixed and assigned desk positions, workers in a flexible office space can choose the area of the office that best suits the type of work they need to do at that moment.
Flexible workspaces can be easily rearranged to accommodate changing business objectives, or quickly scaled up and down to fit teams of different sizes. These kinds of dynamic office spaces are typically designed to be used in conjunction with flexible working arrangements to provide teams with the freedom to work where, when, and how they want.
Who Uses Flexible Workspace?
Even now, the flex workspace market battles the perception that it is solely for small businesses and that corporations and larger organizations do not belong in shared spaces. The reality is that companies are trading in leased buildings for flex space. In fact, demand last year grew by 35% in the US and 30% in the UK as larger firms sought out space in flex workspace centers operated by a third party.
They are choosing to use this space for large project requirements, or for the benefit of taking on more space for a year or two without the risk of committing to a long-term lease. For these firms, flex workspace is a low-risk way of expanding and taking on more staff without needing to commit to a more rigid model of occupancy – the lease.
Types of Flexible Workspaces and How They Work
When we think about the traditional office space, we know what it looks like: most likely an open plan and less often cubicles. Remote workspaces come with a greater variety of layouts and types of spaces, from open space to private spaces. Let’s go over some of the most common ones:
- Traditional office space – While lacking many of the benefits that other types of flex office space provide, traditional office space still fits within the definition of flexible office space as long as the lease terms are within three years.
- Shared office space – Shared space is another term that is changing quickly with the times. These types of shared spaces enjoy informal sharing agreements and subleasing a portion of another organization’s office space.
- Coworking space – This is a subgroup of shared space, where virtually everything except a dedicated desk or office suite is shared with other companies, teams, or individuals.
Coworking spaces include:
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- “Floating” or shared desks
- Dedicated desks
- Private offices in a coworking space (previously referred to as executive suites)
- Office suites in a coworking space (multiple offices)
- Custom buildouts by a coworking provider, also called a flexible headquarters
How Are Flexible Workspaces Affecting the Real Estate Industry?
An overriding trend has been the shift towards service-based models, in many cases enabled by digital innovation. Commercial real estate is undergoing an evolution as increased demand for flex space and innovation around the office models for procurement and operation are leading to profound change; with much of this centered around the idea of workspace as a service.
This growth in more flexible working, enabled by technology and the changing attitudes of business, has seen how organizations find and occupy offices radically evolve.
Increased workplace flexibility means immense changes within many workplaces.
Need For Less Overall Real Estate
Since many employees are conducting their work from home or virtually, facility managers may find that their employees may need less actual physical space in their workplace environments in order to conduct their usual job tasks. This may result in several changes to the status quo.
Changing Needs for Communal Spaces
With meetings, including client meetings, taking place virtually, many facilities managers are finding that there’s less need for communal space within the office. Meeting rooms may not need to be as large, since many people will be connecting with the office via a virtual connection.
The shift to virtual workers, or flexible work schedules, also means that many facilities have smaller break room needs. On the other hand, it may mean that facilities managers need to carefully consider where people will gather when they are present within the physical office environment, and make sure there is adequate space for employees on the days when everyone needs to report for a specific reason.
Increased Flexibility Changes Security Needs
As flexibility increases across the workplace and employees spend less time in the physical building, security needs are changing along with those demands. Your on-site security and reception staff might not have the chance to get to know every employee personally. They won’t see them coming into the office every morning or have a chance to get to know their needs on a personal level.
Tracking and monitoring software can make a huge difference in your overall security since you can better keep track of exactly where employees are and who is in the building. This strategy can also make it easier to continue to stop security threats at the door, rather than mistakenly allowing them to get through.
Why Is Flexible Space So Popular
Businesses, large and small, have begun to gravitate towards flexible space for a variety of reasons. First and foremost, it provides more agility for organizations, helping them seamlessly expand or contract over time. Shorter agreement terms carry less risk for an organization, whereas a complex, multi-year lease can essentially act as an anchor when mobility is a critical need for most enterprises.
Benefits for Businesses
Besides agility and mobility, the different types of flexible space also provide a range of benefits for businesses that longer-term, traditional leases lack.
- Lower costs/overhead
- No long term lease
- Convenient scalability
- Fully furnished spaces
- Fast solutions to enter new markets
- Improved employee retention
Benefits for Operators & Landlords
By embracing the benefits of flexible workspace, landlords can not only future-proof their assets, but also best stand out at this crucial moment when lockdown is easing and recovery begins.
- Increased occupancy and revenue
- Enhanced tenant satisfaction and loyalty
- Improved operational efficiency and sustainability
Why Choose IPA Commercial Real Estate?
Choosing the right commercial property management company can make real estate ownership a breeze. For people who own commercial and industrial properties, working with a respected property management company can be a great resource. With 30+ years of experience in the Inland Empire, the experience of the IPA Commercial Real Estate team provides a depth of knowledge regarding maintenance and project costs.
Just like management in any other business, a respected management company can monitor the care and financial requirements of any property. We can also help evaluate your rent structure. IPA Commercial Real Estate very focused on client properties and tenants and we have the skills and knowledge to make your ownership experience easy and pain-free.
We offer 24/7 Service from our team day or night! Call IPA COMMERCIAL REAL ESTATE at (951) 686-1462 to discuss how we can help you. Let us show you how to add value to your property.