Flex space is a form of real estate that allows companies flexible office space, typically with a shorter lease term (monthly – three years) than traditional office. Flex spaces tend to be smaller suites with shared spaces for other tenants. Often times these spaces originate from an industrial space where tenants can build it out to fit their needs. Transitioning to a flex workspace is a great decision for fast-growing companies, as they are more ‘flexible’ than traditional office leases where tenants are usually locked down for a long period of time.
This emerging trend can make it difficult for tenants to understand exactly what they need, but thankfully RefineRE helps occupiers determine if a flex space is right for them.
Flex space encompasses different types of real estate, though it’s most associated with industrial properties that include an office space, too. As the popularity rises, so does the variety in which lex spaces are newly located (retail, convention, manufacturing). Looking for a comprehensive guide to FLEX? Check out RefineRE’s Complete Guide to Corporate Flex Space.
Flex spaces continue to grow in popularity, with 25% growth between 2014 – 2019. JLL attributes flex spaces to about 8% of the total office leases in most major gateway cities. In 2019, flex accounted for a whopping 20 percent of leasing activity in New York and London. The pandemic has even spurred interest from landlords who have been dealing with empty offices.
Lease terms for flex real estate are typically much shorter (or flexible!) than a traditional office lease. Long-term leases presented quite the challenge during the pandemic when workers were forced to stay home, leaving their offices unoccupied (which was a sunk cost for tenants).
One of the main benefits of flex workspaces is the community you can build by working with other companies. While many workers still prefer to work remotely, those itching to get back in the office will enjoy the camaraderie available in a shared space. It’s also a fantastic way to make new connections. You never know how your neighboring company could become a valuable partnership.
If you’re in a flex space with multiple tenants, you’re likely to be sharing amenities that you may not have access to in a traditional office. Landlords are increasing tenant amenities to make the office more comfortable, fun, and communal. Who doesn’t want to take a ping-pong break over lunch while sipping on a coffee from one of the taps in the kitchen? Tenants are now looking for more than just a water cooler and a few apples.
Exploring a new workplace experience is overwhelming – and each space is different from the next. Thankfully, RefineRE’s FLEX solution is an incredibly valuable tool to help business find the best space for their needs.
Our FLEX solution will identify corporate real estate leases that are prime candidates for a flexible working strategy. Within FLEX, we:
The proof is in the pudding. RefineRE recently helped a technology provider save 49 days a year in commute times by finding them the right flex fit for them. We utilized decentralized flex offices and optimized specific teams and business units for remote work. Saving 49 days a year is incredible in any scenario – but especially for commute times when workers are unable to productively work. Ready to join the countless organizations that are including a flex option in their portfolio strategy? Contact us for a quick 15-minute conversation. As we know all too well, 15 minutes could save you 49 days a year! Why wait?