Many flexible workspace operators are struggling right now. With companies avoiding renewing their leases, several firms are facing high vacancies, which has led to layoffs and a decrease in revenue.
However, a recent JLL report predicted that flexible office firms in certain markets may triple their presence by 2030. Bryan Murphy, CEO of Breather, says that the transformation is already underway.
“We’ve seen business and sales activity more than double in the last 30 days,” said Murphy. “Most of our new customers are coming from leases that they’ve let expire. They’re saying, ‘We know that we don’t want to sign a new lease right now, we know that we need a little less space — 20% is a very typical number — and these are turnkey spaces that we can move right into.”
Murphy added that he is confident that more companies will opt for short-term, flexible office leases moving forward. The risk of a long lease and the high costs it takes to maintain them is no longer feasible for many, and flexible workspaces offer the perfect solution to this.
Companies who use flexible offices have the ability to use them at their own leisure and book meeting spaces on-demand. For instance, Breather in particular offers a mobile app that allows users to rent spaces for as little as one hour without a membership commitment.