Companies are at a crossroads as they consider which path to take when it comes to office takeup. While working remotely has been readily embraced by several industries, it still has some downsides that are begging to be acknowledged.
Flexible offices once made up a small portion of the commercial real estate market, but has been an up-and-coming sector for years now. With employees seeking for more flexibility and agility even after the pandemic, operators could see a massive spike in demand.
This has led to companies looking at the hub-and-spoke model, which would consist of several smaller offices in the suburbs and one main hub in the city.
With this real estate strategy, employees can continue to enjoy their decreased commutes, while maintaining a healthy work-life balance.
Although the flexible office market has taken a big beating over the last several months, the industry could potentially come back stronger than ever with the hub-and-spoke model.
Adopting these workspaces is not only beneficial for employees, but companies also get to reap their own benefits. For instance, flexible offices are fully-furnished with everything a traditional office needs and more, allowing companies to save money on overhead expenses.
Additionally, businesses do not have to commit to long-term leases with flexible offices as they typically operate on a short-term basis. This alleviates risks that come with lengthy leases, particularly during the pandemic.