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Home Daily Digest Coworking

Pre-pandemic Flexible Office Models Are A Relic Of The Past

According to a new report from Yardi Matrix, flexible workspaces with brand new revenue models will play a crucial role in future office strategies.

by Aayat Ali
December 30, 2021
in Coworking
Reading Time: 2 mins read
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Prepandemic Flexible Office Models Are A Relic Of The Past
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New analysis from Yardi Matrix shows that flexible offices will make big waves in the office sector moving forward. 

According to the findings, occupiers are expected to demand more flexibility and mobility from their physical offices. 

“Going forward, it is less likely that flex space operators will use the revenue model common before COVID-19, where operators signed leases for high-quality space in city centers and then rented the space out to their members,” the Yardi report states. 

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The report notes that management agreements will likely become more common, as they often help landlords see more revenue and decrease the risk that can come with leasing to a single flexible workspace tenant. 

Yardi uses WeWork as an example of operators adopting new revenue models, with the newly public New York-based firm recently partnering with Saks Fifth Avenue to convert some of the retailer’s spaces into flexible offices. 

Flexible offices in general are becoming more popular among office occupier’s portfolios. In fact, a CBRE survey showed that 86% out of 77 global companies plan to incorporate flexible space as part of their real estate strategies. 

On the other hand, just 5.6% of office buildings actually have flexible offices within their properties and are typically located in highly dense cities, according to Yardi Matrix. 

“In the near term, flex space can bridge the gap between an uncertain future and the needs of the present,” the Yardi report reads. “In the long term, shared space will play a vital role in providing the flexibility that is crucial to attracting and retaining employees in a tight labor market.” 

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Source: Globe St.
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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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