Occupier strategies for the new reality
In January, we predicted five flexible workspace trends to watch, including:
- 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;
- A revival of suburban locations and further operator fragmentation
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.
Key forecasts for the full year in 2020:
- Overall demand for new space from flexible workspace operators in the region is expected to be less than half the level that we recorded in 2019
- Demand is likely to be muted across major markets such as Singapore, Australia and China
- In Hong Kong, we expect negative absorption by the end of the year
- Bangalore, Delhi-NCR, Tokyo and Manila are expected to lead the demand for new space in 2020.
While these are challenging times, we see flexible workspaces adapting to the changing business environment by differentiating their products, incorporating more technology into their offerings and working together with occupiers and landlords to produce mutually beneficial accommodation strategies.
Download the Flexible Workspace Outlook for 2020 below.