Majority of companies to increase utilisation of co-working and flexible workspace

Knight Frank’s ‘Your Space’ report found that 44% of respondents believed that flexible workspace would make up to a fifth of all corporate office space during the same period.

The study polled 120 senior executives at global companies which collectively employ over 3.5 million people.

Some 15.9% of respondents anticipated that the proportion of their occupied portfolio within serviced office/flexible office/co-working space would increase to 20-50% three years from now.

Dr Lee Elliott, global head of occupier research at Knight Frank, said: “This research underlines that a decade of global economic uncertainty has reshaped how many of the world’s largest companies view workspace.

“Shorter business planning horizons – together with the emergence of new, more agile corporate structures – has driven demand for flexible space, which enables companies to react to change quickly.

“While co-working and serviced office operators have grown rapidly over the past five years – driven largely by start-ups and the freelance economy – this is only the tip of the iceberg with latent demand from global companies set to emerge over the next three years.”

William Beardmore-Gray, global head of occupier services and commercial agency at Knight Frank, added: “The demand for flexibility is the single biggest threat – and opportunity – to owners of office space.

“The recent boom in co-working is indicative of a structural change within commercial real estate, whereby companies desire space that is flexible, highly serviced and aligned within the realities of doing business in an age of disruption.

“Some co-working operators have capitalised on this already, but it is imperative that owners and developers react to the new reality where customer is king.”