Why Flexible Workspace Is the Most Efficient Real Estate Structure for Your Business

The challenges faced by business over the past couple of years thanks to the global pandemic caused an acceleration of something that’s been the trajectory of work for the past decade or more… The shift to remote work and digital transformation, both of which require flexibility and agility at their core to succeed.

How companies use space moving forward is being redefined across all sectors as evidenced by a recent study conducted by one of the largest commercial real estate brokers in the world, CBRE.

When enterprise companies, who have the easiest time achieving economies of scale are redefining their real estate portfolios and switching large percentages of their needs to flexible workspace (also known as coworking), small to medium sized companies need to pay attention.

The average cost per employee for enterprise is lower than any other sized business. The flexibility already in their portfolio is also unmatched by small to medium sized business who often don’t have multiple locations already in their real estate mix.

The change to a hybrid first working model is now amplifying the shortfalls in the traditional real estate model that can only be addressed, through flexible operators to further enhance efficiency, provide more, localized options to their workforce and reduce the cost per employee still further.

CBRE’s Occupier Sentiment Survey found that approx. 25% of companies that responded reported move than 10% of their real estate portfolio was now in flexible office space. 

Even more, over 50% expect to fall in that same group within the next 2 years. 

Why?

Because flexible workspace solutions provide businesses with a dynamic, agile and incredibly reactive solution to better respond to the still evolving employer-employee relationship. Practically, the cost savings and improved employee engagement make for an even stronger solution.

Uncertainty

According to CBRE, the primary barrier for those companies not yet taking advantage of flex space is simply a lack of experience with flexible workspace solutions. 

“Although many occupiers would like to incorporate flexible office space into agile real estate strategies, they often are unsure how to execute it.”

WorkLodge can help.

Our mix of term length options allows businesses to utilize our offering in any of the following ways:

• On-Demand

Book our shared space on-demand, as needed, treating us as an extension of your real estate portfolio in the markets we serve. Utilize shared space, private offices, team suites, meeting and conference space and even recording / filming studios, all at the click of a button. Consider our coworking space Houston day pass for even more flexible options.

• Short Term

Engage in a short term commitment to secure dedicated, private space for your remote workforce along with access to our shared facilities like break areas, conference rooms, studios and more. 

Both options help companies reduce their real estate footprint by up to, while being better placed to accommodate the current uncertainties around headcount and usage. In addition, by reducing their footprint, they also reduce the tax related burdens not only from a direct financial saving, but indirectly by decreasing the effort and resources (along with head count) needed to maintain those traditional spaces.

Reduced Liability

We’re seeing companies also take advantage of our flex space solutions to better position themselves as they grow into new markets (or simply grow into new talent markets), reducing the risk and liability associated with traditional real estate.

By reducing an organization’s risk of being locked into long-term contracts businesses find it easier to adapt to changing trends (such as headcount, and how often those employees need to come in on any given week to how employees are actually use the space and what amenities / environments are needed).  

Privacy

Many organizations are also concerned about privacy requirements but to the perception that flexible workspaces are, by nature, shared. Understandably, this can create security concerns for larger enterprises, primarily around network security and access. 

At WorkLodge, we were built from the ground up with these factors as primary concerns due to our founder’s experience in the world of boutique security, working with ultra-high net worth and Fortune 50 clients. Our security protocols led the industry when we opened and continue to lead today such as biometric access (upon request), private internet offerings and more.

The way people work has changed. Permanently. Everywhere.

The way companies adapt and the quality of employees they can attract and retain will define their success in the coming decade.

Real estate is no long a static asset for you to manage, but a flexible service procured as needed, when needed and where needed for as long as needed. To better accommodate the ever-changing needs of today’s organizations, while reducing risk, liabilities and costs.