FM newsroom – flexible office, office market.The European flexible space market showed resilience in the past years despite the numerous problems of the global economy. According to experts players from this segment will continue to look for best-in-class office space, paying more and more attention to amenities and ecological aspects in 2024.
For several years now, the European flexible office space market has been exceptionally resilient, largely driven by tenants’ growing interest in flexible solutions to attract and retain talented employees. In turn, operators started raising the bar, offering best-in-class space and taking into account amenities and ecological aspects in their offer, experts at Workthere.pl point out.
“Companies encourage employees to return to the office, which is why these aspects are so important for tenants who are looking for offices in attractive buildings with environmental and ecological certificates. At the same time, large and medium-sized enterprises indicate the need for flexibility when starting a new type of business or the need to provide project space for groups of employees,” – claims Thomas Jodar, Associate Director, Savills, leader of the Workthere project in Poland.
What will be the key to success in 2024? The experts have identified 5 trends in the flexible office market that are worth paying attention to.
Amenities like in a five-star hotel
Competition to attract and retain talent will continue to drive operators to expand their offerings to include additional employee amenities. As part of the competition for tenants, operators are already introducing solutions that go beyond standard gyms, yoga rooms, cafes and outdoor spaces. The best players in the market are opting for amenities similar to those available in five-star hotels, such as private chef services or rooftop bars. building.
Convenient access and services
Tenants interested in high-class space are also looking for the best locations that will provide employees with convenient access and a full range of services in the area. Professionals expect this trend to continue. However, the insufficient supply of office space in many European cities, like in Madrid, Munich and Barcelona, will significantly affect the level of demand and the availability of flexible offices.
ESG-related issues are becoming increasingly important
Both operators and tenants are looking for office spaces in buildings that meet the highest environmental standards. A potential solution – especially for large companies – may be spaces that not only meet ESG requirements but also are located in buildings with LEED or BREEAM certificates. Flexible offices will continue to play a unique role in decarbonization strategies due to the ability to share optimized and best-in-class space.
Companies are opting for flexible solutions
Macroeconomic uncertainty and high capital costs may contribute to increased demand and interest in the flexible office space sector. Many companies are opting for greater diversification and more flexible solutions due to the agility in the work organization process necessary in times of uncertainty. After the pandemic, some larger companies reduced their office space and started work in a hybrid model, deciding to use flexible offices thus limiting expenses.
Obtaining additional revenues
The costs of renting a workplace have increased in the premium segment in most European cities. Experts at Workthere.pl anticipate that operators will strive to improve profitability in 2024 by looking for other opportunities to increase margins in addition to increasing rates. Options for obtaining additional revenues may be to generate higher profits from renting rooms for conferences and events, desks in coworking spaces or offering customers packages of technological solutions as part of cross-selling.