Landlords Consider Adding Flex Space To Their Buildings

Some workers are slowly returning to the office, and with this comes increased responsibility for landlords and business leaders.

The reality of a large second wave is still a major threat, leaving the real estate market anxiously waiting for the unknown. This is particularly true for the office sector, which is at risk as many large corporations reveal plans to implement remotely working policies indefinitely.

This has led some of these large companies to opt for flexible offices for their employees as they move towards a hybrid work environment that allows for both in-office and at-home working.

“About eight weeks ago, companies said to us that once things reopen, people will want to go to work, but no one wants to go to work five days a week,” said Jamie Hodari, CEO of flexible office firm Industrious. “There’s a level of flexibility that companies are anticipating that we’re working to try and provide. But it’s pretty out there. It hasn’t traditionally existed in the real estate market.”

The growth in demand for these workspaces has caused landlords to consider adding their own flex space in their buildings, but this means taking on much more responsibility. Flexible leases deal with more than just maintaining the space — it includes handling food and beverage services, conference room bookings, IT infrastructure, as well as a larger load of contract management, billing and marketing.

Overall, the office is not going anywhere, but it is moving in a much more agile, flexible direction.