63% Use Flexspace
Did you know that 63% of Global Organisations use FlexSpace in their portfolio.
Cushman & Wakefield one of the world’s largest Commercial Real Estate (CRE) companies released a report in late 2019 that reveals how Corporate Enterprise perceive the value of FLEXSPACE - Flexible Workspace and CoWorking strategies within their organisations.
Here are some of the findings:
Corporates using FlexSpace as part of their portfolio
Main Benefits
The main benefits that companies perceived were:
Ability to ramp their real estate portfolio up / down as required
Reduced real estate costs
Increased employee engagement and satisfaction
Networking with other companies / employees
Attracts and retains employees
Improved efficiency of employees
Improved perception of company brand / culture
Perceived Downsides
The main downsides that were perceived by companies were:
Ability to ramp Digital security concerns
—> WERKEDGE has experienced IT consultants on hand
Decreased Company culture
—> WERKEDGE can deliver a custom branded solution CANvas Custom to look and feel like your branded company
Decreased personal privacy
—> WERKEDGE CANvas Custom can provide you with the right mix of private spaces
Increased Real Estate Costs
—> WERKEDGE can deliver efficient semi or fully managed workspace, that saves you long leases, large legal fees, large make good and can be accounted as Operational not Capital costs. A WERKEDGE managed workspace can also includes food and beverage amenities, technology services, operating costs, elective services, and the ability to be flexible, all of which are not considered in a normal lease and paid differently.
Real Estate Costs
ON AVERAGE, ORGANISATIONS CURRENTLY UTILISING FLEXSPACE ALSO CITE LOWER CRE COSTS (AS A % OF BUSINESS REVENUE).
Over a 5 year period businesses experience the Cost of Real Estate decreasing from 10.3% down to 9.7% of their operational costs.
Read more on the next post for actual savings, This takes into account the longevity of business and leases and shows how long leases have inherent long term costs as opposed to a fully managed FlexSpace experience.
So …
One-third of companies using flexible space report occupancy cost savings of more than 5 percent.
“While this may surprise some, even 20 years ago, the client mix of national and global flexible workplace providers was 51 percent multi-national corporations,” said Melanie Gladwell, Vice President, Americas Head of Flexible Working Solutions at Cushman & Wakefield. “Increasingly, corporate executives recognise that integrating flexible space into their strategy can provide additional value while reducing occupancy costs by enabling them to adapt to major events such as merger activity.”
Background:
A partnership between Cushman & Wakefield and CoreNet Global, a worldwide association of corporate real estate executives, surveyed more than 550 key commercial real estate (CRE) executives globally. Participants were asked about their general perceptions of the coworking sector, the pros and cons of using coworking, expected impacts on cost, and past and future employee utilization of flexible office spaces. More of the report can be read here - “REAL ESTATE LEADERS CONTINUE TO SEE VALUE IN COWORKING”
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm with approximately 51,000 employees in 400 offices and 70 countries. In 2018, the firm had revenue of $8.2 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services.