The Instant Group have released their latest report ‘The Global Flex Market: The top 18 markets for flexible workspace in 2019’ detailing the key global cities that are leading the way in the flex market for 2019 and beyond.
The Instant Group have released their latest report ‘The Global Flex Market: The top 18 markets for flexible workspace in 2019’ detailing the key global cities that are leading the way in the flex market for 2019 and beyond.
Flexible workspace now accounts for up to 5% of overall office space in 18 of the largest global markets identified by Instant, including Tokyo, Sydney, New York, London and Los Angeles.
This figure is expected to double in the next five years as demand increases and supply grows in response as more companies than ever before adopt a flexible workspace solution.
It turns out, flex does sell
Demand for flex space increased by +19% in the global cities, and the demand is no longer led by freelancers and start-ups.
An increasing number of corporates are looking to flexible workspace options, as they look to reduce risk and costs, whilst also increasing agility. In fact, requests for larger spaces from corporates now makes up a fifth of totally market demand.
The market continues to evolve
The flex market continues to experience double-figure growth, with supply increasing by 16% on average, within the top 18 cities.
And it’s not just the more mature markets that are stealing the thunder, it’s predicted that the Asia-Pacific market is expected to overtake EMEA in volume of supply during 2021 as companies within the region increasingly adopt flexible solutions.
James Rankin, Head of Research and Insight at the Instant Group says, “The growth in supply of flex space has been the #1 story in commercial property markets around the world. But so many of the key city markets outside of the top five are under-sized compared to the total sq. ft. of office space within them. There is more growth to come as client awareness of nonlease options increases the search for more choice in the market. We have only seen the tip of the iceberg for larger, corporate requirements as companies look to flex 20% of their portfolios or more.”
The Global Cities report highlights
- Supply is spreading outside of CBD’s as the market begins to evolve
- Increased supply pushing desk prices down in key markets
- Demand for flex space in Berlin, Paris, Chicago, Los Angeles and Vancouver almost double the global average
- Commentary from leading operators like The Executive Centre, Mindspace, Convene and JustCo
- Increased competition encouraging innovation and rising standards across the industry
- APAC market set to overtake EMEA in volume of supply by 2021
