New data shows that flexible office operators are poised to continue building their profits as more companies transition to hybrid work models.
According to Workthere, the flex office specialist of Savills, 87% of operators in the UK have become profitable, while 63% have reported profit margins above 15%.
This coincides with workers coming out of fully remote environments and returning to the office at least a few days a week. But this is more than just a transitional period to a full-office return – it is setting precedent for what’s to come.
While flex space operators are seemingly set for consistent growth in the future, some remote working tools like Zoom are experiencing a hit. For instance, Zoom Business subscriptions fell from 470,000 in 2020 to 191,000 in 2021.
Additionally, private and shared office occupancy have grown to near pre-pandemic levels at 81% and 69%, respectively. However, the Flexmark report shows that 71% of respondents feel that their offices are not being fully utilized.
“The growth in profitability has undoubtedly been driven by an increase in demand for flexible offices across the globe,” said Cal Lee, global head at Workthere. “We have seen occupancy recover to pre-Covid levels and desk prices internationally driven up by 7%, compared to a drop by 6% in last year’s survey.”
