In our recent webinar, experts from The Instant Group and CoworkIntel explored the value of data in making flexible workspace operations more seamless, less risky, and more profitable, especially when it comes to strategic expansion.
In the early days of modern revenue management, airlines unlocked new profitability by shifting from fixed ticket prices to dynamic rates based on demand and occupancy. This innovative approach soon caught the attention of the hotel industry, and now short-term workspace rentals are also embracing these strategies.
Today, data drives this demand and occupancy visibility, enabling strategic optimisation across these sectors – and the flexible workspace industry is now at the forefront of this evolution. Coworking operators are leveraging market intelligence platforms such as CoworkIntel to revolutionise their operations and strategies, ushering in a new era of efficiency and growth.
In our recent webinar, "Powering Decisions about New Coworking Locations with Market Data," experts from The Instant Group and CoworkIntel commented on the current trends that coworking and flex operators are witnessing, especially regarding demand, occupancy, and transaction sizes.
The webinar homed in on the power of data in making flex operations more seamless, less risky, and more profitable, especially when it comes to strategic expansion. Here’s a summary of the main points covered during the webinar.
KEY FLEXIBLE WORKSPACE MARKET INSIGHTS
Ben Wright, Global Head of Partnerships at The Instant Group, opened the webinar by providing an overview of the current trends in the flexible workspace market. Here are some highlights:
1. Rising Costs and Market Demand:
- Costs for flexible offices, including labour and amenities, are rising, and member expectations are higher.
- Despite these challenges, demand for flexible workspace continues to grow, outpacing supply in many areas. For instance, Mexico City is experiencing a significant supply-demand imbalance, with most operators at over 90% occupancy, according to The Instant Group’s data.
2. Centre Sizes and Occupancy:
- In the UK, larger office centres tend to have higher occupancy rates, contrary to previous trends where smaller suites were preferred.
3. Transaction Sizes and Term Lengths:
- There has been a global increase in transaction sizes for flexible workspace, with data from The Instant Group showing a 29% increase in EMEA from Q1 2023 to Q1 2024. This indicates greater adoption by larger companies.
ADDITIONAL TRENDS AND OPPORTUNITIES
Next, Ben Wright and Jean-Noël Escande, a developer at CoworkIntel, explored how the group's data reveal additional trends shaping the sector:
- Supply vs. Demand:
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- Supply is growing but not fast enough to meet the rising demand, particularly in key markets like Mexico City.
- Occupancy Rates:
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- Larger centers are achieving higher occupancy rates, implying that operators may have a new opportunity to expand their spaces to cater to bigger corporate occupier needs.
- Landlord Expectations:
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- Landlords are increasingly interested in flexible workspaces, with 60% expecting at least 20% of their portfolio to be flexible by 2030. Additionally, 67% plan to develop their own flex brands, according to research from The Instant Group.
- Operator Expansion:
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- A significant percentage of operators plan to increase their footprint, with central business district locations showing substantial growth potential.
In a rapidly evolving market, having access to reliable data is crucial for making smart investment decisions
The CoworkIntel platform, at the heart of this webinar, demonstrated how operators with this detailed level of market data and insights can capitalise on market trends and drive growth. The platform removes the need for mystery shopping and unlocks strategic insights that help operators find their next profitable location. Watch the full webinar recording here.
For more information or to request access to CoworkIntel, please reach out to our team here.
