Published by Maria Bichl on Jul 26, 2021
An obvious choice for SMB’s & freelancers for many years already, flexible workspaces have been growing in popularity among large corporations in the past decade as well. As ventures of all kinds have had to deal with the effects of the current global pandemic, they’ve also realised that permanently adjusting their real estate strategy can be a great way to respond to the future needs of their workforce, as well as the company's P&L.
Around the world, industry leaders are already pioneering new ways of working by focusing on flexible solutions that transform the old office environment into a dynamic, creative space. Among the companies that are leading this change and started utilizing flex space models are Microsoft, IBM, Amazon, and Facebook, with the list getting longer as time goes on.
There are many pertinent reasons for which large enterprises choose to replace their traditional office and move towards a flexible solution - we’ve outlined the most relevant below:
#1 saving costs
Renting a traditional office facility can present multiple disadvantages, especially in the current global context - from inflexible agreements to major overhead costs in running the space, it can all have a severe impact on the company’s bottom line. Choosing a flexible solution doesn’t only help save through reduced real estate exposure; it also becomes a cost-effective way to expand or reduce the workforce as the venture develops.
#2 increased flexibility
If there is something that the last year and a half has proven, it’s that regardless of their size or operating field, organizations need to be able to adapt in order to continue thriving in the global business environment. Flexible workspaces allow flexibility not only in the way work is organized and performed but also in terms of financial management, helping companies react very quickly to changes and optimize their growth.
If the last 18 months have taught us anything, we can’t predict the future. Businesses shouldn’t try and predict the future, and part of that is not wanting to sign a 10 year lease and instead moving towards flexible products. 18 months from now something will absolutely be different within an organization, said Ben Munn of JLL in a recent talk about the future of work.
#3 innovation and community
The antiquated 9 to 5 office workday is slowly becoming obsolete, with enterprises adapting to be able to offer their employees new ways to engage. To cater to the growing millennial workforce, large enterprises in particular need to focus on creating an environment that centers collaboration, creativity, and community. A flexible workspace does not only promote communication; it also exposes employees to an innovative, modern environment where they can work alongside energetic startups and high-tech entrepreneurs.
#4 focus on the core business
Commercial office space leasing can be time-consuming and onerous - whether it’s securing & managing the facility or dealing with high overheads, many ventures are finding that they would instead use their resources more efficiently. Workspace-as-a-service allows companies to focus on their core business and prioritize growth while still providing their employees with a working environment in which they can thrive.
In a historic move for the company, Google has recently decided to close their London campus in order to find better ways to support the budding startup ecosystem, stating that their work at Google for Startups has never been about the building, it’s always been about *what* [we’re] building.
#5 financial & tax advantages
Beyond being a great way to save costs, flexible solutions also present benefits when it comes to tax management. Given that IFRS rules treat any lease as a debt on the balance sheet, companies can re-strategize their lease terms in order to decrease liabilities. Moreover, traditional lease negotiations can result in months of spending and separate bills; flexible workspaces allow for better financial planning due to the integrated cost structure.
Whether they aim to create a more engaging environment for their younger workforce and attract talent or to have a higher flexibility in terms of organization and costs, one thing remains clear: leading enterprises are adapting to allow for more flexible options. This trend is predicted to continue in years to come.
Are you currently looking to include flexible solutions in your offer? We’ve outlined the most popular ways to do so in our last blog post. What’s more, infinitSpace aims to make it easier than ever for landlords to find flexible solutions to current challenges. Get in touch with us for more information here.