More than two thirds (67%) of office landlords believe tenants will increasingly expect more flexible lease terms, according to the latest Savills Landlord Flex Survey.
More than half (52%) of the landlords who responded to the survey said they were optimistic about the long-term prospects of the flex office sector – up from 46% in 2022 – with 54% of landlords saying they were willing to explore management agreements with a flex operator.
The amount of flex space tenants require has also increased, with 41% of landlords stating the most common size requirement is now more than 2,500 sq ft – in the 2022 survey the most common size requirement was between 500 sq ft and 2,500 sq ft.
Cal Lee, global head of Workthere and co-head of Savills Flex, said: “There is a growing trend of landlords recognising flexible office space as a part of the amenity offering in a building that can help support its overall leasing performance. As the demand for flex space continues to rise, we are seeing an increasing number of landlords accommodating this trend by dedicating more of their building space to the provision of flex space and the associated amenity it offers occupiers.”
Simon Preece, commercial research analyst at Savills, added: “Over the last few years, we have seen landlords becoming more comfortable with management agreements, which are generally favoured by flex office operators as they allow an element of risk sharing. We expect that these types of agreements will continue to grow in popularity as we move forwards.”
