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What You Need to Know from
The Instant Group’s New Report 

NEWS / 27 SEPTEMBER 2024

As the world of work continues to evolve, operators are adjusting their strategies to align with shifting real estate priorities. The Instant Group’s newest report sheds light on how flex spaces are not only accommodating today’s hybrid workforce but also preparing for future demands. From fixed to flex, ‘It’s A Whole New World’, indeed. Here’s everything you need to know.


The Instant Group surveyed 180 flex operators worldwide to understand how these shifts are impacting the flex market. Whether through expanding locations, offering a broader product range, or addressing sustainability concerns, operators are moving from fixed to more flexible solutions. 

 

FATC’s Findings:

 

Expansion on the Horizon 

 

Flex operators are growing their footprint to meet the rising demand. An impressive 79% of global operators plan to expand, with 45% aiming to open up to two new locations and 27% targeting up to five. The drive to offer more space reflects a response to the increasing number of companies embracing flexible workspace solutions.

 

Diverse Product Demand

 

Flexibility is no longer just about office space—meeting rooms, hot desks, and short-stay bookings are on the rise. As the needs of businesses broaden, operators are expanding their offerings to include a wider range of products, catering to an increasingly diverse clientele. In the UK, the demand for meeting rooms, private offices, and wellness amenities is projected to rise, while in the U.S., operators foresee increased utilisation, particularly for meeting rooms and private offices.

 

Longer Leases in the UK

 

UK tenants are showing a trend toward longer-term commitments in flexible spaces. Almost 60% of operators report tenants staying 3 to 5 years, a longer average than in other regions. In comparison, the U.S. market sees 45% of tenants staying for 1 to 2 years.

Rates Set to Rise

 

Last year, while costs soared, fewer than 20% of operators passed those expenses on to customers. This year, the pressure is mounting. With rising operational and lease costs, 69% of operators plan to raise rates in the next year. In the U.S., 55% cite higher OpEx costs, while 36% of UK operators are increasing rates due to lease pressures. This points to a growing focus on revenue generation in a competitive landscape.

 

Sustainability Gaps

 

Despite growing interest in sustainability, there is still a significant gap between what occupiers expect and what operators are delivering. Over 35% of operators are uncertain whether their spaces use renewable energy, highlighting an area ripe for improvement as the industry moves toward greener solutions.

 

To dive deeper into these insights (we suggest you do), download the full report and discover how flex operators are positioning themselves for future growth.

Written by

Flex and The City