Despite the pandemic bringing a cloud of uncertainty to the flexible office industry, some major operators are rising to the occasion and looking to capitalize on new opportunities.
For instance, IWG took over 30,000 square feet of office space in Hong Kong that was previously leased by another operator.
“The operators which came into this challenging period in a strong financial position with well-established businesses, limited vacancy and favourable underlying real estate deals are able to look at two main routes to expansion: either taking over space from another operator and or acquiring the businesses of struggling competitors,” said Ben Munn, managing director of flexible space at JLL.
While this is mostly the case for large, established operators, smaller companies are seizing new opportunities as well. For example, hotel operators have started marketing their rooms as day offices for workers who need a place to work distraction-free outside of their homes.
Munn added that flexible and agile space will be essential for companies who are looking to conserve cash and decrease their own real estate liabilities. Demand for these flexible workspaces is expected to increase, so operators need to be prepared to accommodate this growth.
“Landlords that respond to the customer’s needs for flexibility, cost certainty, and all-inclusive workplace product and service propositions will win out,” said Munn.
