Sustainability initiatives are no longer a “nice-to-have” in the flexible workspace industry; they are becoming an essential driver of value and differentiation.
At the recent GWA Immersive event in New York City, Sam Pickering of The Instant Group, Kate Rube of IWBI (International WELL Building Institute), and Liz Simon of Industrious discussed how sustainability practices are reshaping the flexible office sector. Here’s a closer look at their key insights and what they mean for operators and landlords.
Sustainability as a Standard
High-grade assets globally are increasingly adopting performance measures that prioritize energy efficiency, healthy building initiatives, and lower carbon outcomes, which are becoming mandatory compliance requirements in many regions.
Landlords are increasingly recognizing that robust sustainability measures are critical to maintaining and enhancing property values, attracting occupiers, and driving down operating costs. For operators, this presents both a challenge and an opportunity: to align with these evolving standards and position themselves as leaders in sustainability practices, again to drive higher revenue and retain new and existing occupiers.
The WELL Coworking Rating: Simplifying Sustainability
One standout solution for operators is the WELL Coworking Rating, a groundbreaking rating system designed specifically for flexible workspaces. Backed by science and developed by The Instant Group and the International WELL Building Institute (IWBI), this rating provides a clear and accessible framework for integrating health and sustainability into workspace design and management. Key benefits include:
- Boost revenue: The rating positions operators to demonstrate investments in health and well-being strategies, which are proven to deliver over 7.5% higher desk rates.
- Tailored features: The rating is customized to the flexible workspace model, ensuring it’s relevant and actionable for coworking operators.
- Market differentiation: WELL-rated workspaces can stand out in competitive markets by showcasing their commitment to health and sustainability.
- Attract and retain occupiers: Member productivity is shown to be up to 8% higher where workspaces demonstrate health and well-being initiatives.
Already, Landmark, Clockwise, and Iconic Offices are focused on achieving ratings to set a new standard in the industry. Koba became the world’s first to achieve this rating at 100 Barbirolli Square in Manchester, working with IWBI and The Instant Group as part of a pilot cohort to shape the program. Their innovative use of repurposed materials and a "materials passport" exemplifies how flexible workspaces can embed health and sustainability at their core, inspiring others to meet the growing demand for healthier, more sustainable environments.
Why Sustainability Matters More Than Ever
As Liz Simon from Industrious highlighted during the panel, sustainability strategies are becoming indispensable for attracting occupiers. In competitive markets, these types of measures aren’t just about meeting regulatory requirements –they’re about staying relevant and driving growth.
Occupiers are increasingly prioritizing health and sustainability when selecting workspaces, making certifications like the WELL Coworking Rating a key factor in decision-making.
Driving Demand and Revenue Through Sustainability
The panelists also underscored the financial benefits of sustainability certifications. Workspaces that align investments with health and well-being standards are proven to achieve 7.7% higher desk rates, a strong indicator that sustainability practices can unlock higher revenue potential. With the influx of occupiers seeking sustainable workspaces, operators can attract a broader range of occupiers who are willing to invest a premium for workspaces with better standards for their employees.
As the real estate sector increasingly aligns with sustainability priorities, operators who adopt these practices early are better positioned to not just capture demand and build lasting competitive advantages, but to offer a more compelling value to partnerships with landlords that also value these practices.
A Call to Action for Operators and Landlords
The panel made it clear that sustainability is no longer a peripheral consideration—it’s central to the future of flexible workspaces. By embracing tools like the WELL Coworking Rating, operators and landlords can not only meet evolving standards but also drive demand, enhance property values, and contribute to a healthier, more sustainable future for the industry.
As we look ahead, the integration of sustainability into flexible workspaces will continue to be a key differentiator. The question for operators and landlords isn’t whether to adopt these practices, but how quickly they can integrate them to stay ahead in an increasingly competitive market. By prioritizing sustainability, the flexible workspace industry can lead the charge toward a more sustainable and prosperous future for all stakeholders.
With the WELL Coworking Rating, operators that invest in sustainability practices can now differentiate their offerings from the competition with an internationally recognized badge on their listings across The Instant Group’s constellation of demand-generating platforms. Learn more about how it works here.
