Flexible workspace represents the future of office space, according to Colliers flexible workspace specialist Barney Wilson. The sector is moving beyond traditional coworking stereotypes as businesses increasingly seek alternatives to long-term leases, favoring more adaptable office solutions.
Wilson, who joined Colliers in April following his work in London’s flexible workspace sector since 2018, highlights a significant shift in how businesses perceive flexible workspace before and after Covid.
The impact of Covid on flexible workspace demand
“After COVID, the environment changed dramatically.
Flexibility became the top priority. Businesses avoided long-term commitments due to uncertainty about headcount, growth, and future requirements, compounded by the possibility of further lockdowns.”
Wilson observed that London has led the sector, while Australia’s flexible workspace market is still developing. “London has been at the forefront of the flexible workspace revolution, evolving into a mature, diverse, and sophisticated market vastly different from a decade ago… Sydney and Australia are still catching up, but the potential is significant.
In Australia, there remains a misconception that flexible workspace caters only to small companies, startups, and solopreneurs. This is far from accurate.”
The rise of managed offices
One notable development outside Australia has been the growth of managed offices, which bridge the gap between traditional leases and serviced offices.
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Managed workspaces are expected to gain importance in Australia as landlords and operators respond to occupiers seeking flexibility without sacrificing privacy or quality. Wilson points out that businesses are looking for spaces accommodating 20 to 100+ people, complete with meeting rooms, executive offices, kitchens, and breakout areas, typically for 12 to 24 months.
The market often lacks products meeting these specific needs, forcing some businesses into traditional leases due to the absence of suitable flexible options. This gap is particularly noticeable for companies seeking self-contained workplaces rather than small offices within larger coworking environments.
Wilson added, “A 30-person business might want its own office, meeting rooms, and facilities, but flexible options offering all these features are scarce.
As a result, they resort to traditional leasing processes, which can take months, whereas a flexible solution could be ready in weeks.”
The future of flexible workspace
Physical workplace quality remains critical, as occupiers grow more discerning. Wilson stresses that while community is valuable, it cannot make up for subpar spaces. A well-designed, functional office is essential to preserving the community benefits flexible workspaces offer.
Opportunities for landlords and the office market
Looking ahead, Wilson envisions dedicated flexible office buildings becoming more common. Currently, flexible workspace providers often occupy only a few floors within larger buildings. However, he anticipates the rise of locations where every floor is exclusively dedicated to flexible offices, ranging from 10 to 1,000 square meters. This development will solidify flexible workspace as a core part of the office market, offering businesses more options to meet their evolving needs.
The sector’s operational speed is also notable, with over 50 percent of inquiries leading to viewings within a week and the average time from inquiry to signing taking around 10 working days. This efficiency highlights the growing demand for flexible solutions and the sector’s responsiveness to occupier needs.
