Demand for hybrid workspace has shot up since the pandemic. As more businesses adapt to a new way of working, the opportunity for property owners and investors to provide local flexspace becomes clear. But what do the statistics reveal about the future of commercial real estate?
While already popular beforehand, the hybrid work model gained even more traction during the COVID-19 pandemic – but in a post-pandemic world, it’s clear that it’s here to stay. This has forced businesses to reevaluate their office needs. Many have chosen to shift from traditional long-term office leases to approaches that empower workers to spend more time at local flexspaces.
This presents an opportunity for property owners and investors to meet the rising demand for flexspace outside of major city centres, and partnering with IWG is the easiest way to do this. As the following stats show, the future of commercial real estate centres on hybrid workspace – so there’s never been a better time to embrace the movement.
Statistics show hybrid workspaces are the future
Numerous studies have indicated that flexspaces are part of the future of work, and hybrid working is already the reality for 48% of UK workers and 40% in the US. Gallup research shows that, in total, 52% of employees are working in a hybrid model, and 54% expect hybrid working in the future.
With more businesses planning a full shift to flexible working, how do we really know that flexspace is the future? Here’s the research that proves it.
83% of workers consider a hybrid workplace model as the ideal working environment.
That’s according to the Future of Work Study by Accenture. The study also found that “workers enabled to perform their work anywhere are 2.3x more likely to stay with their company, even in high-turnover industries”, showing the difference hybrid working can make to talent retention.
77% of workers say a place to work closer to home is a must-have for their next job move.
IWG research found that the ability to ditch daily commuting was of paramount importance, with more than three-quarters of those surveyed saying that somewhere to work closer to home was essential for their next job move. The demand for local flexspace has become even more evident with instances of workforce migration from cities to suburbs, where affordable living is a driving factor.
50% of workers would quit their job if asked to return to a central office five days a week.
Somewhere to work closer to home isn’t just a requirement for new jobs, either – half of those questioned said they would quit their job if asked to return to a central office five days a week. With more businesses concerned with their staff’s wellbeing, adopting a hybrid model seems the obvious choice for increasing staff downtime. Being closer to home and commuting less allows for family time, community engagement and rest, factors linked to higher work-life balance.
The flexible workspace sector is set to grow 600% by 2030.
Membership of IWG’s global on-demand scheme rose globally by 93%. Indicating the huge rise in demand for hybrid workspace, IWG’s global on-demand scheme saw a 93% rise in membership year-on-year in 2022. Demand was even greater in the UK, where the figure was 137% higher.
By taking advantage of the global reach and expertise of IWG, property owners and investors have the opportunity to revitalise vacant or underused spaces and generate superior returns in sought-after areas. With hybrid working only set to increase, top-tier flexspaces really are the future of commercial real estate.
IWG is looking for partners to open local workspaces in the heart of communities, close to employees’ homes. With their help, landlords and investors can turn empty buildings into profitable, income-generating flexible workspaces. Find out how to partner with IWG here.