Occupier strategies for the new reality
In January, we predicted five flexible workspace trends to watch. These included enterprise outsourcing becoming mainstream; highly amenitised assets with best-in-class hospitality being ‘table stakes’ for any new office development; a continued boom in wellness offerings; and a revival of suburban locations and further operator fragmentation. The impact of COVID-19 has accelerated these trends, while new trends – such as the integration of home as a place of work and the growing importance of the digital experience – have also emerged.
Flexible workspace will play a pivotal role in occupier models. As markets start to recover from the effects of COVID-19, we expect to see an increase in demand for flexible workspace models, particularly because there will be a greater emphasis on health and wellbeing, hygiene, and work/life balance in the workplace going forward. Businesses will likely adopt smaller office ‘hubs’ in decentralised locations, allowing them to save on space/cost while also benefiting their employees who will have shorter commute times.