• Marketplace
  • Resources
  • Business Directory
  • Events
  • Advertise
  • Brand Pulse
  • Publish a Press Release
  • Get the Newsletter
  • Contact
  • About Us
The FUTURE OF WORK® since 2003
Allwork.Space
No Result
View All Result
Subscribe
  • More
    • Columnists
      • Dr. Gleb Tsipursky – The Office Whisperer
      • Nirit Cohen – WorkFutures
      • Angela Howard – Culture Expert
      • Drew Jones – Design & Innovation
      • Jonathan Price – CRE & Flex Expert
    • Get the Newsletter
    • Events
    • Advertise With Us
    • Publish a Press Release
    • Brand PulseNew
    • Partner Portal
  • Latest News
  • Business
  • Leadership
  • Work-life
  • Career Growth
  • Tech
  • Design
  • Workforce
  • Coworking
  • CRE
  • Podcast
  • More
    • Columnists
      • Dr. Gleb Tsipursky – The Office Whisperer
      • Nirit Cohen – WorkFutures
      • Angela Howard – Culture Expert
      • Drew Jones – Design & Innovation
      • Jonathan Price – CRE & Flex Expert
    • Get the Newsletter
    • Events
    • Advertise With Us
    • Publish a Press Release
    • Brand PulseNew
    • Partner Portal
  • Latest News
  • Business
  • Leadership
  • Work-life
  • Career Growth
  • Tech
  • Design
  • Workforce
  • Coworking
  • CRE
  • Podcast
No Result
View All Result
Subscribe
Allwork.Space
No Result
View All Result
Advertisements
Kube Suite - TL
Home Business

As Companies Rethink Their HQ Leases, Flexible Workspaces Stand To Win

Cecilia Amador de San JosébyCecilia Amador de San José
September 1, 2020
in Business
Reading Time: 4 mins read
A A
More Articles Templates

As companies weigh whether a sprawling urban headquarters still makes sense, flexible workspaces stand to win some new clientele.

  • As organizations look to the future, many are planning on making remote work a permanent part of their work arrangements.
  • However, companies that are choosing to adopt remote work policies are having to rethink their real estate strategies.
  • Companies are weighing whether a sprawling urban headquarters still makes sense, which means that flexible workspaces stand to win some new clientele.

COVID-19 has undoubtedly changed the way people work. More importantly, the coronavirus pandemic has forced companies of all sizes to rethink their work arrangements and styles. If 8 months ago there was any skepticism about the effectiveness of remote work, that skepticism is long gone by now. 

For the past 6+ months, most companies have allowed employees to work remotely. As organizations look to the future, many are planning on making remote work a permanent part of their work arrangements. 

Advertisements
Fiverr - Get It Done By Tomorrow

While some believed this meant the end of the office, the reality is far from it. However, companies that are choosing to adopt remote work policies on a more permanent basis are having to rethink their real estate strategies. 

Afterall, if less people will be coming into the office on a daily basis, then a company’s space requirements will undoubtedly be reduced. 

Advertisements
Yardi Kube automates flex and coworking operations

The Future of Corporate Real Estate Is Flexible 

Over the past couple of years, flexible workspace operators have tried to attract corporate clients in the hopes of strengthening their business models. 

With remote work on the rise, flexible workspaces stand to win some new clientele. 

The flexible workspace industry has been hard hit by the pandemic. While the short-term outlook still remains uncertain, the medium and long-term outlook for flexible workspace operators looks quite bright. 

In a recent report, Cushman & Wakefield argued that many large enterprises were likely to turn to coworking and other types of flexible workspaces to better support the new working styles of employees. 

Advertisements
Nexudus - Tech Stack Lovers

A research report from JLL had similar findings:

“The trend towards workplace mobility was not created as a result of the pandemic, but it was certainly accelerated by it. As a result, agile work strategies are expected to increase in a post-pandemic world, reinvigorating demand for flexible space.”

As more companies continue to embrace remote work and flexible work practices, more companies will have less demand for long-term leases. Some may even be less interested in having owned assets. 

BP and Pinterest Backing out of Major CRE Deals Is a Good Indication that Flex Stands to Win

In fact, we are already seeing a shift in company sentiment towards real estate. 

More stories for you

How AI Is Creating a Profit Divide Among Coworking Operators

How AI Is Creating A Profit Divide Among Coworking Operators

60 mins ago
IWG Partners With SmartLabs To Bring Flexible, Fully Managed Labs To Global R&D Markets

IWG Partners With SmartLabs To Bring Flexible, Fully Managed Labs To Global R&D Markets

2 days ago
Commuter Perks Go Plush As London Offices Add Sleep Suites And Saunas

Commuter Perks Go Plush As London Offices Add Sleep Suites And Saunas

2 days ago
Flexible Workspace Demand In U.S. And Canada Up 19%

Flexible Workspace Demand In U.S. And Canada Up 19%

2 days ago

This past weekend (Aug. 29-30), two major companies announced major changes to their real estate strategies. 

Bloomberg reported early Sunday morning that “BP Plc plans to sell its headquarters in central London as it cuts jobs and adopts flexible working.”

The oil company, which employs 6,500 office staff in the UK, stated that it “will move to a mixture of home working and office working.”

Similarly, Pinterest announced on Sunday that it had terminated the 490,000 square-foot lease it signed last year for 88 Bluxome Street in San Francisco’s SoMa District. 

Advertisements
Disaster Avoidance Experts

According to reports, “the lease termination is aimed at supporting a more diverse and geographically distributed workforce.” The company is rethinking where employees could be based. 

While neither company specifically stated it plans to use third-party flexible space operators, the opportunity is there, especially if companies are rethinking where their employees could be based. 

A recent Bisnow article argues that “as their (organizations’) older employees search for new suburban homes and young professionals let their leases expire, companies are weighing whether a sprawling urban headquarters still makes sense.”

Japanese company, Fujitsu, announced recently that it has plans to slash its real estate footprint by half in less than three years. 

Advertisements
Workspaces Run Better On UltraSoftBIS

The company is planning to fully embrace telework. However, this doesn’t mean that the company won’t be needing any offices, according to reports. 

“Under a concept known as a “borderless office,” the firm wants to better clarify the roles of such spaces, setting flexibility, productivity and communication as core values so that offices won’t just be a place for employees to demonstrate that they are there and working.”

According to company statements, Fujitsu “plans to make use of more third-party co-working spaces while also turning their local branches into satellite offices.”

Speaking to the Financial Times, IWG’s CEO Mark Dixon, recently stated that:

Advertisements
Workspaces Run Better On UltraSoftBIS

“Hub and spoke will be a major change for the property industry. We were doing it for quite a few companies pre-Covid, but demand is exploding.”

Advertisements
Subscribe to the Future of Work Newsletter
Tags: CoworkingCRE
Share5Tweet3Share1
Cecilia Amador de San José

Cecilia Amador de San José

Cecilia is an experienced writer and editor with a background in strategic communications. She has written articles for Allwork.Space on several topics, including the future of work, flexible workspaces, employee wellness., and more.

Other Stories Recommended For You

How AI Is Creating a Profit Divide Among Coworking Operators
Coworking

How AI Is Creating A Profit Divide Among Coworking Operators

byEmma Ascott
60 mins ago

AI is driving a profit gap in coworking as data-savvy operators outpace competitors in growth.

Read more
IWG Partners With SmartLabs To Bring Flexible, Fully Managed Labs To Global R&D Markets

IWG Partners With SmartLabs To Bring Flexible, Fully Managed Labs To Global R&D Markets

2 days ago
Commuter Perks Go Plush As London Offices Add Sleep Suites And Saunas

Commuter Perks Go Plush As London Offices Add Sleep Suites And Saunas

2 days ago
Flexible Workspace Demand In U.S. And Canada Up 19%

Flexible Workspace Demand In U.S. And Canada Up 19%

2 days ago
Advertisements
Workspaces Run Better On UltraSoftBIS
Advertisements
Disaster Avoidance Experts

Unlock your competitive edge in tomorrow's workplace.

Join a community of forward-thinking professionals who get exclusive access to the latest news, trends, and innovations that are shaping the future of work.

©2024 Allwork.Space News Corporation. All Rights Reserved.

Exploring the Future Of Work® since 2003.

Advertise   Newsletters   Privacy Policy   Terms Of Use   About Us   Contact   Submit a Press Release   Brand Pulse   Podcast   Events   

No Result
View All Result
  • Home
  • Latest News
  • Topics
    • Business
    • Leadership
    • Work-life
    • Workforce
    • Career Growth
    • Design
    • Tech
    • Coworking
    • Marketing
    • CRE
  • Podcast
  • Events
  • About Us
  • Solutions
    • Advertise | Media Kit
    • Publish a Press Release
    • Brand Pulse
Subscribe

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
-
00:00
00:00

Queue

Update Required Flash plugin
-
00:00
00:00