Will “The Great Resignation” Increase Demand For Flexible Workspaces?

• Four million Americans quit their jobs in April according to the Labor Department. 
• People are rethinking what work means to them and how they spend their time; many workers are quitting to start their own businesses or become full-time freelancers.  
• Flexible workspaces stand to benefit from the Great Resignation, as freelancers and entrepreneurs search for office space to house their business.  

Labor and workplace experts have predicted a post-pandemic job resignation uptick. 

As the pandemic seemingly ends, people are leaving their jobs in search of more flexibility and happiness. People are rethinking what work means to them and how they spend their time, which is leading to a dramatic increase in resignations. 

The great migration to remote work has had a profound impact on how people think about when and where they want to work. 

Data from workforce analytics company Visier, confirms that the impending “Great Resignation” is going to happen sooner than originally thought. It’s not surprising that coworking trends and the future of work is the subject of speculation.  

Resignation statistics  

A study found that even content workers are open to new opportunities, with 48% actively searching for new and more flexible job opportunities.  

A Microsoft survey of more than 30,000 global workers showed that 41% of workers were considering quitting or changing professions this year. 

A study from HR software company Personio of workers in the UK and Ireland showed 38% of people surveyed planned to quit in the next six months to a year. 

The healthcare and high-tech industries are seeing the most resignations. Resignations in the tech field have increased 4.5% between March 2020 and March 2021, while the healthcare industry saw resignation rates rise by 3.61% in the same time frame. 

Four million Americans quit their jobs in April – a record high – according to the Labor Department. 

Because so many people are quitting their jobs and beginning to venture off into doing their own thing – such as starting a business – does this mean that demand for flexible coworking spaces will increase? 

Will the demand for flexible coworking spaces see an increase due to The Great Resignation?  

Partially due to the pandemic and changing attitudes toward work, people across the country are making major life changes. But whether deciding to start a business, go back to school, or stay home with the kids, these changes involve stepping away from traditional work arrangements. 

Based on the assumption that flexible workspaces cater to entrepreneurs, freelancers, and startups, these spaces might soon see a large increase in clients after the impending Great Resignation.  

Just like workers had to abandon their offices when COVID-19 began spreading, freelancers, entrepreneurs and others deserted their coworking spaces.  

At the end of 2019, flexible space leasing activity was down 50% compared with 2018, according to JLL Research. However, things are beginning to pick up again as more workers become vaccinated, gain the capability to work remotely, or just want to return to a workspace. 

WeWork  is seeing growth after the pandemic. The company reported that in the second quarter of 2021, it had the strongest net desk sales since September 2019. All-access memberships increased 33% from March 2021 to May, and total occupancy increased 3% in the same time frame, according to Middle Market Growth.  

The demand for coworking spaces is already being seen on a massive scale.  

According to Upsuite’s Flex Office Pro, Coworking Trends, and Insights Platform data, demand for coworking spaces per location grew 41% from the first quarter of 2021 to the second quarter. 

New York City (83%), Los Angeles (77.9%), and Denver (63%), all showed above-average demand growth. 

More and more workers are choosing not to become employees but to retain their freedom by becoming freelancers. More than one in three workers in the U.S. are setting their own hours and becoming their own bosses, and 42% said that they chose this path to have more flexibility. 

How will The Great Resignation affect the future of work? 

Demand for coworking and flexible office spaces will be partly driven by companies’ need for flexibility due to the impact of one of the largest workplace disruptions in history (the pandemic).  

1. The average company will plan a two or three-day workweek in the office, which will drive flexible solutions. 
2. The average seat prices in coworking spaces will rise in most markets as demand for these spaces increases. 
3. JLL Research predicts that demand for flexible space will continue to increase and by 2030, 30% of all office space will be consumed flexibly. 

If the great resignation trend continues, there will be more workers going solo and creating start-ups than previously seen before. The North American coworking and flexible space market is clearly returning, and quickly, which will be spurred on even more in future by The Great Resignation as people begin to work for themselves and freelance more.