The flexible workspace sector is growing at pace, it is expected to represent 30% of the commercial real estate market by 2030 and be worth $199bn.
There is a lot of confusion around what exactly “flexible workspace” means and how this differs from traditional office space.
With a wide range of new solutions being developed by landlords and operators flexible workspace is taking on new meanings to different people.This article aims to unpick some of this complexity as well as addressing other common questions about flexible workspace.
With a wide range of new solutions being developed by landlords and operators flexible workspace is taking on new meanings to different people.This article aims to unpick some of this complexity as well as addressing other common questions about flexible workspace.
So what exactly is flexible workspace?
“We define flexible space as pre-built work environments available for short durations through a streamlined transaction process.” (JLL, Global Flexible Space Outlook Report, 2001).
The term “flexible workspace” defines a continuum of workspace summarised in the diagram below.
This starts at “pay as you go workspace” which you can find on the Tally Workspace on-demand workspace platform.
With “pay as you go workspace” companies can book workspace such as hot desks, meeting rooms, event spaces, and private offices hourly or daily.
At the opposite end of the spectrum, companies can take bespoke offices on shorter leases (under 5 years).
Offices are designed and fitted out to meet the exact customer requirements but do not have the obligation and legal complexities of a traditional office lease.
Offices are designed and fitted out to meet the exact customer requirements but do not have the obligation and legal complexities of a traditional office lease.
Clearly, there is a whole continuum of different workspaces that fall under the “flexible” umbrella.
The key things that a flexible workspace is typically associated with are outlined below:
The key things that a flexible workspace is typically associated with are outlined below:
Less commitment:
Flexible workspace is available on shorter lease terms than traditional office space.
Flexible office space agreements are normally ~12 months whereas traditional office leases are 5 years +.
Flexible office space agreements are normally ~12 months whereas traditional office leases are 5 years +.
Variety of different spaces:
Flexible workspace is normally designed around activities rather than a fixed desk per headcount.
You might find collaboration areas, quiet areas, areas for calls, standing desks, and meeting rooms.How companies work varies hugely and that is reflected in how flexible workspace is designed.
You might find collaboration areas, quiet areas, areas for calls, standing desks, and meeting rooms.How companies work varies hugely and that is reflected in how flexible workspace is designed.
Simplified agreement:
By taking a flexible office space you are either making a “pay as you go” booking or entering into a license agreement.
License agreements are less complicated than commercial office leases. This reduces legal fees and makes it much quicker to complete transactions.
License agreements are less complicated than commercial office leases. This reduces legal fees and makes it much quicker to complete transactions.
Cashflow:
Fit-outs are normally included which removes the risk for companies of huge upfront capital investment.
Because prices are normally all-inclusive it's also much easier for companies to budget and forecast.
Because prices are normally all-inclusive it's also much easier for companies to budget and forecast.
Ready to move in:
People can sometimes sign a contract on a flexible workspace and be in their new office within 24 hours.
On the flip side, there are still flexible workspaces that clients fit out and these typically have a 3–9-month lead time so this isn't always the case.
On the flip side, there are still flexible workspaces that clients fit out and these typically have a 3–9-month lead time so this isn't always the case.
Serviced or managed:
Often flexible workspace includes services that would otherwise need an office manager to look after.
Services include everything from wi-fi to cleaning to security to tea and coffee.
Services include everything from wi-fi to cleaning to security to tea and coffee.
Shared amenities, facilities, and services
Flexible workspace typically comes with a range of shared services e.g. libraries, event spaces, or games rooms.
A benefit of multiple companies using the same building is that these facilities become much more affordable when shared.
Flexible workspaces aim to make it easy for businesses to focus on their business rather than facilities management.
A benefit of multiple companies using the same building is that these facilities become much more affordable when shared.
Flexible workspaces aim to make it easy for businesses to focus on their business rather than facilities management.
Collaboration and community
Most flexible workspaces have a sense of community as companies and people share the space.
Flexible workspaces encourage this offering free networking and social events.
Flexible workspaces encourage this offering free networking and social events.
Is flexible workspace here to stay?
A lot of people have argued that the huge growth in flexible working was due to the COVID-19 pandemic and will die down as the world returns to normal.
But growth in flexible workspace was happening prior to COVID at an average annual rate of 22% in the prior decade vs. 1% average annual occupancy growth in the conventional office market over the same period (Source: JLL).
But growth in flexible workspace was happening prior to COVID at an average annual rate of 22% in the prior decade vs. 1% average annual occupancy growth in the conventional office market over the same period (Source: JLL).
Is flexible workspace more expensive?
This really depends on how a company uses flexible workspace.
At Tally Workspace we have helped companies save 60% or more on their office space.However, we typically see companies move from traditional leases to flexible spaces to reduce their commitment and to find workspace that better suits their teams needs.
At Tally Workspace we have helped companies save 60% or more on their office space.However, we typically see companies move from traditional leases to flexible spaces to reduce their commitment and to find workspace that better suits their teams needs.
Who are the top flexible workspace operators in the UK?
There are over 6,000 flexible workspaces in the UK (Source: Modor Intelligence) and a number of different operators running them.
Some of the top brands are as follows:
Some of the top brands are as follows:
- IWG (own Spaces and Regus) - 320 buildings
- Bizspace - 73 buildings
- The Office Group - 61 buildings (including those from the recent merger with Fora)
- Wework - 58 buildings
- Workspace Group - 47 buildings
- Landmark Space - 44 buildings
How can I find flexible workspace?
At Tally Workspace we specialise in finding companies flexible workspace.
Whether you are looking for on-demand meeting rooms or a one-year office lease, we've got you covered.Just pop us a message on the live chat and we will help you find the flexible workspace of your dreams.
Whether you are looking for on-demand meeting rooms or a one-year office lease, we've got you covered.Just pop us a message on the live chat and we will help you find the flexible workspace of your dreams.
