This growth has attracted interest from alternative, family and private equity investors but only recently the workspace sector has become large enough to accommodate traditional income seeking institutions.
There is potential for flexible offices to emulate other property sectors such as hotels or student accommodation, to be recognised formally as a separate asset. The adoption of a common valuation model for flexible offices, would speed up the attraction of flexible workplaces and become a core investment.
The growth of flexible workspaces has become a global development. Back in 2017 the amount of flexible workspace in the markets grew by 30% with London being the global capital for co-working spaces.
Various blue-chip businesses are attracted by the flexible workspace sector because it reflects the changing realities of modern businesses and the need for cost-efficient flexibility.
Property owners know that offering flexible workspaces is one of the top ways to attract tenants to their buildings. In time, flexible tenants may grow and will require more space.
Renting office space was a thing of the past, but nowadays flexible workspace owners offer other services contractually, including different on-site amenities such as cafés, gyms or communal workspaces.