Q3 2017 Flexible Office Report – Dimensions of Core and Flex
This is a blog for the Q3 2017 Flexible Office Report, which focuses on the dimensions of core and flex office. You can download or read the full Q3 2017 Flexible Office Report.
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Recapping data & insights around core and flex real estate during Q3 2017, the latest flexible office report gives you the information you need to make the most informed real estate decisions for you and your company. Here are a few of the key insights from this flexible office report.
1. Core and Flex is the New Norm.
By 2020, 54% of enterprises will incorporate coworking & serviced office into their real estate portfolios, according to CBRE. Our Q2 flexible office report also indicated that 30% of office space will be in some form flexible by 2030. That’s according to JLL. Look at these numbers together and we can see that companies are increasingly yearning to have a distribution of core and flex office options.
2. Large companies move fast.
The lifecycle of Fortune 500 companies is around 18 years. That’s shorter than it’s ever been – and the number’s shrinking!
The graph above shows the average lifecycle of Fortune 500 companies. As you can see, companies used to last a lot longer than they do now. This is likely due to the fast-paced environments of emerging markets and industries.
3. Private Companies Understand True Occupancy.
Startups to enterprises are looking to fill their excess space because they understand that over the course of a core real estate term, there’s bound to be plenty of unused and underused space. There’s an issue with the way the traditional CRE world talks about vacancy. If someone’s paying for space, then it’s considered occupied. But what about the space that people don’t use? Or, what about when people aren’t at their work stations?
We can see in the above graph, that even when a space is rented, there’s still about 10% of that space going unused. Whether these are segments deemed “unrentable” or awkward pieces of real estate, LiquidSpace enables private companies to monetize their excess space, in an initiative towards more sustainable workspace. In fact, in 2016, 30% of LiquidSpace supply came from private business.
For more information, read or download the full Q3 2017 Flexible Office Report.
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