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Home Daily Digest Workforce

How The Great Resignation Is Impacting Office Occupiers

In addition to employees leaving their jobs for new opportunities, office tenants are also adopting flexible workspace in lieu of larger-than-necessary, long-term leases.

byAayat Ali
November 1, 2021
in Workforce
Reading Time: 2 mins read
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The Great Resignation isn’t just impacting the workforce — office tenants are also leaving behind their long-term leases and shifting to flexible workspaces. 

In fact, according to JLL, flexible offices will account for 30% of the office market by 2030 as clients utilize these spaces as part of their overall strategy. 

“Large companies now view flexible office as an extension of their real estate, because the product can meet corporate workplace compliance standards, settings and work styles,” said John Arenas, CEO of Serendipity Labs. 

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Beyond work-related strategies, flex space can also help companies with cost savings. Since most flexible offices are “pay for what you use,” businesses do not have to worry about covering the fixed cost of an entire office space, allowing them to offload the burden on their headquarters. 

In addition to cost-cutting measures, these spaces also allow businesses to adopt the appropriate space they need for however long is necessary instead of underusing a larger-than-needed office. Even if a company is uncertain about the amount of space they need, flexible workspaces make it easy to stay agile. 

“We enable companies to match a revenue opportunity they have in a new market with their lease obligation. This is possibly the first time that this has happened in the history of office space, so it’s really exciting to them,” said Arenas. “As a company looks to grow and puts a sales team in a new market, or meets a customer requirement for that market, they no longer have to sign a five- or 10-year lease, which is good because their customer contract may only be one to three years at most, not 10 years.” 

Source: Commercial Observer
Tags: CREWorkforce
Aayat Ali

Aayat Ali

Aayat is an editor for the Daily Digest based in Lexington, Kentucky. She has worked with local coworking spaces since August of 2017 and enjoys taking her firsthand knowledge to write about the fascinating, constantly evolving world of flexible workspaces.

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