Coworking operators could benefit of the end of a lot of traditional office lease contracts in the coming years
Many office lease contracts will come to an end, in Europe, in the coming 2 years. Will coworking and flex workplace operators seize the opportunity? Certainly.
According to the workplace research firm Leesman, total office space reductions could reach 40% across its global clients, reports the BBC. “In most large cities, there is going to be an oversupply of average and bad spaces,” says Tim Oldman, Leesman’s CEO. “Developers might be forced to the cliff edge to be creative, but they have around five years to prepare, mobilise and get ready for the future that’s coming.”
Will the property owners and corporates then embrace coworking?
A study commissioned by the flex workspace service provider infinitSpace seems to say so. For a part, at least.
UK landlords anticipate a 54% growth in demand for flexible/coworking workspace by 2030. Nearly two-thirds state that converting office space into flexible workspaces is a key part of their strategy for keeping up with market demands.
“One in ten UK landlords surveyed (10%) predicts their portfolio will consist almost entirely (91-100%) of flexible or coworking space by 2030, up from the 3% of landlords that currently fall into this bracket. To meet this surging market demand and address tenant needs, over half (52%) of landlords think that their office buildings will need to be redesigned or retrofitted.
