Flexible office space: realising its value

Hybrid working expectations, culture, technology and wellbeing are all driving occupier demands, with flexible workspace providers now very much part of the real estate puzzle. But how are asset managers, investors/landlords and lenders adapting?

We take a look across Europe at the rise of the flexible sector and discussing how the different players and markets are responding.

Listen on-demand here

Panel

• Chris Bennett, Managing Director, Head of London Branch at DekaBank
• David Kaiser, Head of Real Estate, UK and Ireland at WeWork
• Tom Sleigh, Head of Flexible Workspace Consulting, Occupier Services - EMEA at Colliers International
• Boris Strauch, Partner, Simmons & Simmons

The session was moderated by Caroline Turner-Inskip, Partner, Simmons & Simmons.

Key takeaways

• Flexibility is subjective and terms are becoming longer. It is a misconception to think it is just a month to month arrangement.
• Whilst previously landlords may have been hesitant there is now an acknowledgement they need flexible space within their buildings. Schemes without flexible space may get discounted.
• The models for delivering flexible space can vary hugely - the more risk an investor landlord is willing to take the greater the upside on a successful building.
• Flexible office space is a viable and valuable proposition but for core investors it is about finding right balance and offering.
• Lease security is being disproven: 25 year leases can be quite challenging from an investment perspective particularly if SPVs are involved. You are valuing income you may never receive.