A new report on the future of the workplace by EY and the Urban Land Institute, ‘Future of Work – A Global Real Estate Player’s Point of View’, suggests that large firms will seek out a more flexible office footprint as a result of the pandemic.
The research, which surveyed investors, developers, real estate services firms, architects and workspace operators, concluded that major changes are expected in the office market in the next 3 to 5 years.
The research revealed:
- 96 percent expect large corporate users to look for a more tailored and flexible office footprint.
- 66 percent expect flexible lease contracts to become the new normal.
- More than half (53 per cent) of real estate players expect tenants to reduce their office space.
- One quarter of respondents anticipate their office space requirements to decrease by more than 20 percent.
Mark Tindale, director at Sydney leasing agency Cadigal, said demand for flexibility from corporate tenants has increased over the past few years, and this will accelerate.
“One part of flexibility is providing access to third spaces including tenant lounges and larger meeting and event facilities,” he said.
Referencing coworking and flexible spaces, he added: “This sort of flexible amenity is greatly valued by tenants who in some cases will lease less space knowing they have easy access to such facilities.”