Five reasons office landlords must convert to flexible workspace

More than a trend, they’re a transformation of the office market: there’s no doubt that flexible workspaces are the future of work.

At infinitSpace, we’ve seen time and again how converting traditional office space into flex has been a game-changer for landlords across our global network, offering them countless advantages.

But what is it exactly that landlords stand to gain?

Let’s break down the top five reasons why making the switch to flex space can be a savvy move for office landlords.

1. Boosted occupancy rates

Traditional office leases often come with long-term, rigid commitment terms, which can be a deterrent for many businesses – especially startups and SMEs. Flexible workspaces, on the other hand, offer short-term, flexible leasing or membership terms. 

This adaptability can attract a wider range of occupants, including growing SMEs that need scalability, freelancers, remote workers, teams seeking on-demand workspace products, and even large corporations. 

By catering to this diverse tenant base, landlords can significantly boost occupancy rates and reduce vacancy periods – a huge win amid a challenging office market!

2. Higher rental yields

Flex spaces typically command higher rental rates per square foot compared to traditional office leases, as occupants are willing to pay a premium for the added value of flexibility, modern amenities, already fully fitted out workspace ready for move-in, as well as a collaborative environment. 

Additionally, the shared nature of flex spaces allows landlords to maximise the use of their properties. For instance, on average, private offices allow for around 100 square feet per person, while flex spaces require just 30/70 square feet of floor space per person, while other facilities like breakout spaces and meeting rooms can be shared between companies. 

This means that landlords can host multiple tenants within the same area, and as a result, generate higher overall rental income!

3. Enhanced property value

Thirdly, converting to flexible workspaces may lead to an overall enhancement of the property's value. 

Modern, well-designed flex spaces with amenities such as high-speed internet, meeting rooms, fully stocked pantries, barista coffee and communal areas are highly attractive to potential occupants – the increased demand spurred on by this can then drive up property valuations. 

Moreover, a building known for its innovative flex workspace has a competitive edge in the market as more businesses seek flexible solutions, making it a more desirable investment.

4. Adaptability to market trends

Remote work and hybrid models are more popular than ever, and the world of work is constantly in motion. By offering flexible workspaces, landlords can quickly adapt to workspace trends and meet the evolving needs of businesses.

The adaptability flex spaces ensures that the workspace remains relevant and attractive, even as occupant preferences shift over time. Flex spaces can be easily reconfigured to accommodate different types of businesses and working styles, providing a market-resilient, futureproofed solution for landlords.

5. Improved tenant experience and community building

The best workspaces offer businesses more than just a place to work; they are optimally designed to foster collaboration and community.

Flexible or coworking spaces are easily the best solution for this: their adaptable communal areas are primed to host events and build a strong sense of community. This not only leads to higher occupant satisfaction (think boosted retention rates) but also attracts more prospective occupants through a workspace’s vibrant, warm atmosphere.

How can you get started?

The benefits of converting traditional offices into flexible workspaces – increased occupancy rates, higher rental yields, enhanced property value, adaptability to market trends, improved tenant experience – presents a compelling opportunity for office landlords. 

As the demand for flexible, modern work environments continues to grow, landlords who adapt to this trend can position themselves for long-term, future-proofed success in the office sector. 

And of course, this is all made simpler, more cost-effective and more profitable by working with a flexible workspace provider like infinitSpace. We can support across all stages of the conversion process, from conception and conversion to marketing and operation once the site’s open. 

So, what’s stopping you? Get in touch with the infinitSpace team today for more details!