According to The Instant Group’s recent flexible workspace market research ‘The Changing Face of an Industry’, nearly one-third of flexible office operators have seen relatively stable occupancy levels over the last several months.
Additionally, the research has found that demand for flexible workspaces has grown in smaller areas and outside of major cities. However, there are still challenges ahead for the industry as the threat of the virus continues to loom over.
“The flex industry has experienced a dual impact — on the one hand, the pandemic exposed weaknesses in some of its operating models but the future of the office market looks to be considerably more agile, which will ultimately play to its strengths,” said John Duckworth Head of UK and EMEA at the Instant Group. “Whilst the remainder of the pandemic period requires nerves of steel, the recovery phase will see significant opportunities as the sector’s relevance in terms of corporate recovery and strategic portfolio solutions come to the fore.”
Prior to the pandemic, corporations started turning to flexible office space as they reevaluate their real estate portfolio.
The research also revealed that operators in suburban areas have seen a much larger uptick in contract terms compared to major city locations. This follows the trend of people wanting an office to return to, without the lengthy commute and public transit use.
