Dr. Gleb Tsipursky – The Office Whisperer
Nirit Cohen – WorkFutures
Angela Howard – Culture Expert
Drew Jones – Design & Innovation
Jonathan Price – CRE & Flex Expert
This article is based on the Future of Work Podcast episode “Why Flexible Workspace Is the Future of Commercial Real Estate” with Andrea Pirrotti-Dranchak. Click here to listen to the entire episode.
The commercial real estate market is at a critical juncture, because traditional office leasing models (built for a time when employees came into work five days a week) are increasingly out of step with how companies and their people want to work today.
Andrea Pirrotti-Dranchak, Head of Real Estate, Americas at infinitSpace and a leading expert on flexible workspace strategy, explained on The Future of Work® Podcast why this misalignment threatens both occupiers and landlords alike.
With more than 25 years of experience driving real estate innovation across 65 countries, Pirrotti-Dranchak sees the disconnect clearly: long-term, fixed leases are locking companies into costs they can no longer justify as hybrid work models become standard and office attendance declines.
Long-Term Leases No Longer Fit Modern Business Needs
For decades, commercial real estate relied on decade-long leases as the norm. However, this model no longer reflects the uncertain, evolving nature of today’s workplaces.
Pirrotti-Dranchak points to a significant market change: “Lease terms have reduced from, on average, 10 years to seven years. And we’re also seeing that the amount of space that they’re taking overall has reduced by 33%.”
Companies are negotiating shorter leases and reducing space to avoid costly commitments they cannot forecast accurately.
Yet, many landlords remain hesitant to change, clinging to traditional models even as vacancy rates climb in major markets. This resistance stems from fear among ownership and brokers alike — fear of financial risk and disruption to established revenue streams.
What Today’s Workforce Expects From Office Space
Technology has untethered workers from fixed locations, and post-pandemic regulations have opened the door for more flexible arrangements. The old social hierarchies tied to office size and location have faded, replaced by a demand for spaces that support meaningful collaboration, wellness, and community.
Pirrotti-Dranchak emphasizes the importance of purposeful environments: “You want to have purpose-filled space. You want to have spaces that enable people to connect that’s meaningful, that gives purpose to coming into the office.”
For office buildings to attract workers back, they must create experiences and amenities that matter.
Rethinking Amenities and Suburban Workplaces
Outside of downtown areas, suburban office buildings are transforming by incorporating amenities like gyms, restaurants, and shared social spaces, aiming to become attractive destinations rather than mere places to work. However, Pirrotti-Dranchak emphasizes that these enhancements need to be financially viable and be designed to boost the asset’s overall income and value without sacrificing rentable space.
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Increasingly, landlords are collaborating with specialized operators to provide these amenities, allowing them to offer a richer tenant experience without taking on the burden of direct management, ultimately creating more dynamic and appealing environments.
The Shrinking Market for Traditional Office Space
The changing workforce itself impacts demand. Entry-level jobs requiring physical presence are increasingly automated or replaced by AI, while senior-level knowledge workers — the majority of office occupants — often work remotely. This reduces the total number of people who need traditional office space.
Pirrotti-Dranchak said that since many of these senior knowledge workers are remote, the potential customer base for landlords has shrunk considerably, prompting landlords to reconsider who their tenants are and how best to meet their evolving needs.
Flexible Workspaces: The Path Forward for Landlords and Occupiers
Flexible workspace providers are emerging as critical partners in addressing these challenges. By offering shorter leases and scalable space, they provide the adaptability traditional landlords cannot.
Despite compelling business cases for incorporating flexible solutions, many landlords hesitate due to internal friction and fears of disrupting established income models.
Breaking Down Silos to Embrace New Real Estate Solutions
Pirrotti-Dranchak stresses that solving these challenges requires more than just changes within commercial real estate. It calls for cross-functional collaboration across HR, finance, operations, technology, and property management.
“This has to be addressed by HR, it has to be addressed by the CFO, the COO, the head of technology, the head of property. The silos of this decision-making process have to be broken down,” she said during the podcast conversation.
Without this broad engagement, office space solutions will remain out of sync with business needs and employee expectations.
A Clear Message: Adapt or Risk Obsolescence
The message from Pirrotti-Dranchak is unmistakable: commercial real estate must move beyond outdated, inflexible models or face continued decline. The demand for flexible, user-first space solutions will outstrip supply as companies continue to rebalance portfolios.
As the future of work takes shape, landlords and occupiers alike must embrace a new mindset — one that puts people first, offers adaptability, and creates environments where work and life connect meaningfully.
