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The demand for flex-offices has grown

Flexspace

The demand for flexible workspace has grown in Europe and existing service providers offering flexible office solutions have been filled.

Occupiers can expect to see an increase in location choices and enhanced specification in the flexible office space, predicts Colliers in its latest report, Flexpansion 2021, which analysed 36 EMEA markets (Europe, Middle East and Africa).

As occupier demand for flexible workspace continues to grow, more operators are battling for market share, and are adapting their offering with enhanced concepts and higher quality products – which will facilitate more choice and flexibility for occupiers. The development of more products will, in turn, likely deliver better facilities as flexible workspace providers differentiate their facilities to draw in occupiers.

With many organisations permanently adopting an agile working policy, and some businesses moving away from traditional office space altogether, existing flexible workspace operators have responded by expanding and 43 new operators entering the EMEA market. Large players do dominate the market, but the new entrants combined with the ongoing rationalisation of space has led to a rebalancing.
“The demand for flexible workspace has grown in Riga and existing service providers offering flexible office solutions have been filled. Part of occupiers, who previously occupied larger areas in office centers, revised their requirements for office space and also for contractual obligations under the influence of Covid-19, demanding flexibility in terms of both space and lease terms. Flex space also remains an integral part of large-scale office development, with more office developers with projects under construction announcing co-working office plans in their projects, thus offering tenants additional flexibility. One such recent example is the recently concluded contract for flexible office space with Workland by Verde business centre for more than 1,400 m2 of office space, which will provide around 180 flexible workstations,’’ – says Olga Mihailova, Colliers workplace advisory expert.

Alongside operator expansion, substantial growth has occurred in landlord-driven concepts.

Demand from flexible workspace operators to acquire space in central business districts (CBDs) remains strong, but as workforces become more widely distributed as the ‘work from anywhere’ approach is utilised by many organisations, the demand for decentralised flex-space has grown. A combined 256,000 sq m opened across inner and outer city locations, narrowly surpassing the 252,000 sq m opened in CBD locations.

By market, the greatest decentralisation of flexible office space occurred in Barcelona, Cologne, Warsaw and Munich last year. In contrast London, Amsterdam and Copenhagen further centralised their space offer.

Despite the increase in the number of players in the flexible office space market, new activity remains subdued with only 2.1% of available office stock being flexible. This low rate can be attributed to ongoing rationalisation by some operators which accounted for 30% of the space closed, while other smaller and typically single location operators ceased operating in 2021.

To see the full report on flexible workspaces by colliers, press here.

 

Media Contact

Anastasija Ruza

Head of Marketing & PR

Anastasija.ruza@colliers.com

About Colliers

Colliers is a leading diversified professional services and investment management company. With operations in 62 countries, our 17,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For more than 27 years, our experienced leadership with significant inside ownership has delivered compound annual investment returns of 20% for shareholders. With annual revenues of $4.3 billion and $57 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.

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Olga Mihailova

Associate Director | Office Agency & Workplace Advisory

Riga

I have joined Colliers International  team in September 2016 and started my professional journey  with office segment  Landlord Representation within brokerage department. Currently I am supporting office cleints - both Landlords and Tenants, helping them to make best out of their premises.

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Anastasija Ruža

Head of Marketing & PR

Riga

Experienced Marketing&Communications Manager with a demonstrated history of working in the financial services industry. Marketing professional with a MBA focused in Marketing, business management from RISEBA, MBA.

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