A paper published recently by INREV which looks at the flex space revolution, found that flexible office space is playing a growing role in office markets across the globe, with significant implications for investors in non-listed real estate. Ignoring the flex space revolution could be costly for office investors, but jumping right in could also be tricky:
- Growth has been rapid, with the volume of flexible space in the world's 20 largest cities doubling between 2014 and 2017.
- Recent tech innovations such as smartphones, WiFi and more powerful laptops have made it easier to create flexible working space.
- Flex space operators have effectively taken on the role of 'maturity transformers', leasing space long term and sub-leasing it short term.