Home Recent Landlord News Flexible office space to become the new normal say UK landlords

Flexible office space to become the new normal say UK landlords


how to low deposit compensationThe majority of UK landlords (95 per cent) believe that flexible office space is on the brink of becoming mainstream, according to a new study from property group CBRE.

Over three quarters (77 per cent) of landlords surveyed said that they are currently considering some form of flexible provision, with 79 per cent saying they would launch a flexible space in the next year.

The biggest benefit of a flexible office space, according to 39 per cent of landlords, is the increased ability to retain occupiers as they grow and contract.

This is followed by the ability to attract occupiers (22 per cent) and reducing empty space in buildings (21 per cent).

The biggest barriers to offering flexible office space are seen as a lack of experience (30 per cent) as well as disruption to cash flow.

Some investors also worry that co-working tenants will reduce the value of a building if they occupy more than 40 per cent of its space.

Nick Knight, executive director of CBRE valuation said: “It is too simplistic to say that incorporating flexible office space into a building that leads to shorter leases and a variable income stream will be detrimental to value.

“Landlords have to respond to the structural shift in occupational demand. Value is created by deriving the optimum level of income and at present the market is trying to determine the best model to achieve this.”

As part of the survey, landlords were asked where they would consider providing flexible office space.

London and the bigger cities were the most popular locations among the landlords surveyed by CBRE.

However, 29 per cent of landlords said that they would offer flexible office space in any UK city or town.

Emma Jackson, associate director, CBRE research said: “Our findings make it clear that the landlord community regard flexible occupation as a trend that is here to stay.”

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