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Investors Step Up Scrutiny of Flex Office Space

Written by CRETech | Jan 3, 2020 12:00:02 PM

JLL research predicts that 30% of the US office market will comprise flexible space by 2030. One of the drivers behind this growth, ironically, is the uncertainty in the economy. “It’s not just a reflection of current circumstances, such as the ongoing trade war or Brexit, but the rapid shifts in business that make it hard for companies to know what they are going to look like from year to year, never mind in three-, five- or 10-years’ time,” according to Ben Munn, global head of flexible space at JLL, author of a recent post on flex space. Cost reduction for businesses is another reason flex office space is expected to continue to flourish. Co-working investments are expected to maintain momentum over the next five years as corporate real estate executives continue to view flexible workspace as a necessary offering for their employees and crucial to operational cost reductions, according to a Cushman & Wakefield report about corporate perceptions of the value of flexible workspace and co-working strategies. Companies generally see it as cost-neutral and a way to reduce their real estate costs, according to David Smith, Americas head of occupier research at Cushman & Wakefield.