More than three quarters of office tenants are willing to pay more money for offices that incorporate flexible workspace, according to a new study undertaken by Spacemade.
The company surveyed office stakeholders and found 77% of tenants are prepared to pay more rent for offices with flex space. The survey also found incorporating flexible workspace into office assets increased the rental income of buildings by 25% on average.
Half of office stakeholders surveyed said they experienced an increase in footfall when flexible workspace was available on site and 55% said it was easier to let non-flex parts of buildings when flexible space was available elsewhere in the building.
Jonny Rosenblatt, co-founder of Spacemade, said: “The research backs up what we see across our portfolio. When integrated well within the wider asset, it brings a premium to the overall asset, not only generating income through the flexible model but increasing the lettability of the traditional floors.
“The demand for flex space is greater than ever, with our research showing that its desirability will only continue to grow. Where previously serviced offices were hard to value, we anticipate that office assets without flex space will begin to see lower values. Hospitality, amenity and flexibility will become as valuable to the market as ESG in the flight to quality.”
