With more organisations beginning to work from a collection of connected physical and digital spaces, we will need to play to the strengths of each setting. Here we explore how businesses now have the opportunity to incorporate flexible workspaces as part of their commercial real-estate mix.

The pandemic triggered a global shift in work patterns that caused almost every organisation in the world to re-evaluate the future of work. Collectively, we’ve since embraced new behaviours, new technologies and broken away from the traditional 9-5 workday pattern.

As more organisations begin to work from a collection of connected physical and digital spaces (hybrid working), we will need to play to the strengths of each setting. Businesses now have more choice than ever, with the opportunity to incorporate flexible workspaces as part of their commercial real-estate mix.

What have the last few years taught us?

According to WeWork’s hybrid working study, 95% of employees want some level of control over how, where and when they work, with 50% of employees stating that they would prefer to spend up to three days a week in the office. Most businesses intend to support this arrangement as remote working has not been shown to impact productivity in a negative way. The survey also showed how much value people place on having spaces outside of their home to work from – 64% would even be willing to pay for it out of their own pockets.

People need the office but are also spending less time in each location, so it’s no surprise that many organisations are considering new real estate opportunities. Some organisations are reducing their office space, some are repurposing it and some are moving to coworking spaces that allow their workforce to benefit from a plug-and-play model without signing up for long leases.

Deloitte

Deloitte needed a flexible solution for their 800-strong Manchester-based team in response to a change in working patterns. We partnered with WeWork to configure two floors (35,000 sq ft) for Deloitte (reduced from 70,000 sq ft) that became a big part of that solution.

This new environment offers a variety of settings designed to support Deloitte’s work activities and also provides a two-year ‘experiment’ while establishing a long-term solution.

BP

Energy giant BP signed a three-year lease with The Office Group to take up 50,000 sq ft of flexible space in London’s Fitzrovia district. The deal provides BP with 700 desks that can be used by 1,000 workers and offers access to meeting rooms, lounges and other facilities.

What’s the value of coworking spaces?

In our recent Workplace [R]Evolution webinar, we were joined by WeWork’s Head of Real Estate for the UK and Ireland, David Kaiser. WeWork has seen real growth from enterprises and corporations entering the flex space for some time now (54% of WeWork’s customers are enterprise members) and this looks set to increase as more property leases come to an end.

Instant Group’s Chief Marketing Officer, John Williams believes the next twelve months will see an increase in supply of 12% globally for flexible space. Instant reports that the global market for flex space is worth more than 19 billion with 75% of the FTSE 100 now using flexible workspace solutions.

How do you choose the right office space?

According to Gensler’s Design Forecast, flexibility and adaptability are critical for a successful hybrid workforce. We now have an opportunity to fix the pre-pandemic issues of the workplace, explore new real estate strategies and create smarter spaces that allow us to connect to anyone, anywhere, at any time.

We need to be smart in how we use our spaces. Some organisations will reduce their floorplate, use modular furniture to create flexible and responsive spaces, or utilise coworking spaces as part of a wider experimentation and adaption solution. Workplaces are fluid, not static. Each organisation has a wide variety of considerations to take into account regarding space and how to use it most effectively when needed.

The best way to discover what you need from your office is to determine what your employees value most. Do they need places to collaborate and be creative? Do they need to meet with colleagues and clients? Do they need to access resources they don’t have at home?

For some colleagues, the office might be the only place they can concentrate to carry out process work and so it’s important to offer a space that can flex and accommodate the different needs and roles of your people. Flexible workspaces offer a ‘plug and play’ environment that the office of the future needs to replicate.

One thing is for sure, the employee experience must always be considered first.

Will the hybrid model work?

WeWork’s study found people who report high levels of positive work-related sentiments have had access to hybrid working arrangements for some time.

It’s likely that employee demand for hybrid working will only increase – ¼ workers would give up cash bonuses or healthcare benefits in exchange for the freedom to choose their work environment. If organisations don’t start to offer more flexibility, they are missing out on a huge opportunity to attract and retain top talent whilst improving business outcomes.

Firstly, leaders need to understand how their current portfolio works with a hybrid model and connect this directly to what their people need to be engaged, motivated and inspired. Gallup found that companies with a high level of engagement report 22% higher profitability and 21% higher productivity. Leaders can then start to take advantage of the spaces available to utilise them alongside their property and real estate strategies.

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