The demand for flexible workspace is set to accelerate dramatically as over two thirds of global corporates plan to increase their use of flexible co-working and collaborative space over the next three years, according to new research from Knight Frank.
Knight Frank’s Your Space report shows global corporates intend to operate increasingly from flexible, serviced and co-working spaces, which create a more collaborative working environment and offer the freedom to expand and contract quickly according to market conditions.
Today, despite the proliferation of co-working and serviced office operators the majority of global corporates occupy office space on a traditional lease model. Two thirds of companies surveyed by Knight Frank reported that co-working, serviced and flexible office space comprise 5% or less of their current office space. A small minority, less than 7%, said that flexible workspace exceeds a fifth of their total workspace.
However, Knight Frank’s research reveals that the proportion of flexible space within companies’ portfolios is set to increase dramatically. Over two thirds, 69%, of global corporates plan to increase their utilisation of co-working spaces, and 80% expect to grow the amount of collaborative space they use over the next three years.
Furthermore, almost half, 44%, stated that flexible space will constitute up to a fifth of all office space in the next three years. An additional 16% estimated that as much as half of their workspace globally would be flexible space within the same time period.
Over half of companies (55%) identified increased flexibility as the main driver of this change, with a significant proportion (11%) stating that the sense of community fostered among workers was the key benefit. A further 11% stated that the greater speed to becoming operational was the primary reason for selecting co-working or serviced office space ahead of more conventional office space.
The overwhelming majority of respondents, 75%, stated that personal productivity linked to wellbeing and happiness, would increase as they shift towards a new flexible and collaborative model of occupancy that is more in keeping with today’s business structures and working styles.
Lee Elliott, Global Head of Occupier Research at Knight Frank said: 'This research underlines that a decade of global economic uncertainty has reshaped how many of the world’s largest companies view workspace. Shorter business planning horizons, together with the emergence of new, more agile corporate structures has driven demand for flexible space which enables companies to react to change quickly.'
He added: 'While co-working and serviced office operators have grown rapidly over the past five years, driven largely by start-ups and the freelance economy, this is only the tip of the iceberg with latent demand from global companies set to emerge over the next three years.'