Report – Landlords must adapt & refine flex strategies

Published in 2021, this report examined differences between landlord flex-space strategies and the requirements of corporate occupiers. It was based on 51 in-depth interviews conducted by Verdantix for essensys: 36 interviews with real estate decision-makers at owner and owner-operator landlords and 15 with corporate occupiers across the UK, North America and Europe. Respondents discussed demand drivers, portfolio strategies, preferred flex-space products, workplace experience, technology, data security and potential financial returns. The research found that landlords and occupiers both placed importance on workplace experience, technology and flexible lease terms, while identifying gaps between the products landlords offered and occupier expectations. It compared the appeal of meeting spaces, serviced offices, short leases and coworking features, and assessed requirements including ease of move-in, space reconfiguration, amenities and digital services. The report also considered landlord perceptions of technologies such as security systems, reservation tools, analytics and community applications. It concluded that landlords needed to improve their flex-space propositions, particularly for enterprise occupiers, and presented rent premiums and additional monetisation opportunities as potential outcomes for effective provision.

Key findings

• The research drew on 51 interviews with executives at 36 landlords and 15 corporate occupiers across the UK, North America and Europe.
• Only 13% of occupiers considered traditional landlords strongly positioned to meet their flexibility requirements, compared with 47% for workplace specialist operators.
• Among occupiers, 60% planned to incorporate flex space into their real estate strategies, whether expanding, maintaining or shrinking their portfolios.

Published by essensys, 2021