The Leading News & Information Service For The Facilities, Workplace & Built Environment Community

30 Per Cent of all Office Space Will be Consumed Flexibly by 2030, says JLL

30 Per Cent of all Office Space Will be Consumed Flexibly by 2030, says JLL
16 July 2020
 

According to a global study of 3,000 workers, most desire the ability to have the option to work from home 1-2 days per week on average.

Employees are proving keen to return to the office, reporting that they miss the human and social interaction that the office facilitates. At the same time, while employees show a strong affinity for the office, there is also a demand for flexible office space.

JLL states that the trend towards workplace mobility was not created as a result of the pandemic, but was accelerated by it. 

The research included in the report still predicts that 30 per cent of all office space will be consumed flexibly by 2030.

 

“Space will be fast, flexible and fun. Pre-built spaces, agile design, technology integration, flexible lease terms and hospitality services will become the norm and continue to transform commercial real estate from a commodity to a consumer product.”

–Alex Colpaert

Head of Office Research, EMEA, JLL

The Future of Flexible Space

 

The report, “The Impact of COVID-19 on Flexible Space”, outlines the future of flexible space both now and long after the pandemic subsides. The report indicates that flexible space will take a different form than it has in the past but will continue to grow as corporates and investors alike respond to the increasing demand for flexibility.

As more companies adopt increasingly distributed corporate ecosystems, flexibility will be key to employee satisfaction as the office remains a fundamental part of corporate culture. According to JLL’s Occupancy Benchmarking Survey, 67 per cent of real estate decision-makers are increasing workplace mobility programs, while only 4 per cent indicated they would be contracting those programs. 

 

"We anticipate a move towards a ‘hubs and clubs’ model that provides office locations closer to where people live. These distributed locations, or ‘clubs,’ are likely to lean heavily on flexible space arrangements.”

–Ben Munn

Global Flexible Space Lead, JLL

“Office space will continue to evolve as a result of the pandemic and is arguably going to play an even greater role in driving corporate well-being and productivity,” said Ben Munn, Global Flexible Space Lead for JLL. 

“As organisations look to adapt to the ‘next normal’ where de-densification of main office space will need to occur, we anticipate a move towards a ‘hubs and clubs’ model that provides office locations closer to where people live. These distributed locations, or ‘clubs,’ are likely to lean heavily on flexible space arrangements.”

Over the last decade, the experience-led office design movement, which combined mobility with flexibility, manifested into the dramatic rise of coworking and flexible space – which also increased density.  While the densities recorded pre-COVID will likely be reduced, at least temporarily, the demand drivers that led to the flexible space boom are still intact. 

“We expect to see a fundamental shift in the way office space is consumed,” said Alex Colpaert, Head of Office Research, EMEA, JLL. “Coworking operators have experienced a dramatic boom-bust cycle, and COVID presents some unique challenges for the industry, but the future of real estate will retain many of the key elements that helped fuel this disruption.

“Space will be fast, flexible and fun. Pre-built spaces, agile design, technology integration, flexible lease terms and hospitality services will become the norm and continue to transform commercial real estate from a commodity to a consumer product.”

 

Maintaining Productivity

 

While the ability to work from home is becoming seamlessly integrated into working life, maintaining productivity away from the office can be difficult over the long term and living arrangements can often make working from home a less than optimal choice. Corporate perceptions have shifted away from office real estate as purely a static expense toward it being a strategic driver of transformation and employee performance. 

There is a sustained, long-term employee appetite for purposefully designed office space, with safety and well-being at its core, as part of an increasingly integrated, liquid and flexible real estate strategy.

JLL also argue that a greater focus on spaces which emphasize collaboration is also likely to emerge as office space is redesigned and repurposed. As tenants return to their offices, business continuity and operational resilience will be top priorities – and since flexible space is fast and easy to acquire, companies are likely to turn to flex solutions to support portfolio reductions and cost-saving strategies during this time of economic uncertainty.

“The office has long provided a place for concentrated work and is increasingly becoming a place for collaboration, connection, innovation and social interaction. The desire for these characteristics has not diminished. In a revived post-pandemic market where adaptability is high on the corporate agenda and the purpose of the ‘hub’ office is centred around collaboration, flexible space demand and growth will return to its impressive pre-COVID rates,” added Munn.

Picture: A photograph of two people working at a desk

Article written by Ella Tansley | Published 16 July 2020

Share



Related Articles

Flexible Working Policies As Important as Salary, Says HSBC

Research from HSBC shows that an organisation’s approach to flexible working is on par with salary when it comes to employee priorities. HBSC’s study of...

 Read Full Article
Conference Rooms to be Offered as Flexible Office Space

A provider of conference and training facilities has today announced that three of its eight venues will be available to rent as flexible office space on an hourly,...

 Read Full Article
Spotlight Interview – Simon Eastlake | Office Space in Town

From whimsical wonderland scenes to Sunseeker-inspired spaces with stunning views, Office Space in Town (OSiT) offers a range of quirky workplace solutions, which are...

 Read Full Article
66% of Finance Workers Would Leave Their Firm if Required to Work in the Office Full Time

A survey from Deloitte shows that many professionals working in large US financial services institutions would look for another role if their company required them to...

 Read Full Article
Companies Gain 2 Extra Weeks of Work a Year from Hybrid Employees

On average, hybrid working employees deliver nearly two extra weeks of work a year for their employer as well as working harder and better in a hybrid...

 Read Full Article
Mace Report Finds Hybrid is Most Popular Working Style

A new report into workplace trends by Mace shows that hybrid working alongside a collaborative central office space is the most popular post-pandemic working...

 Read Full Article
Sodexo Announces Parental Leave Policy

Sodexo UK & Ireland is enhancing its maternity, adoption and paternity paid leave, as part of its ambition to offer a flexible first culture for its...

 Read Full Article
HSBC Considers New London HQ

Reports from The Sunday Times suggest that HSBC is looking to leave its global headquarters at 8 Canada Square in Canary Wharf. According to the British newspaper,...

 Read Full Article
Majority of 4 Day Work Week Pilot Companies Will Continue With Scheme

The world’s largest 4 day working week trial has published its pilot results, with 91 per cent definitely continuing or planning to continue with the...

 Read Full Article
Flexible Workspace Provider Expands Into Germany

infinitSpace will partner with German commercial real estate developer CG Elementum on two new projects. Both buildings are owned by the Gröner Group and are...

 Read Full Article