Flexible Office Space is Creating Disruption in Midwest CRE

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By: Andrew Batson, Vice President, Director of Research

Flexible workspace is not just for millennial freelancers or tech startups anymore. Large, multinational companies are rapidly adding flexible workspaces to their global portfolios. Discover the global trends taking place within the flexible office sector and the implications for the Midwest, pulled from the complete Flexible Office Space Report.

The Ins and Outs of Flexible Office Spaces

Flexible space is a term used to describe a variety of office types used by occupiers to increase portfolio flexibility, reduce occupancy costs, and enhance collaboration. Co-working is the most common type, followed by executive suites and incubators. Co-working spaces and incubators tend to be located in downtowns or dense neighborhoods, while executive suites tend to be located in suburban areas near large employment centers.

Nearly half of corporations already use some type of flexible office solution, and by 2020, 65% of companies expect to incorporate co-working into their office portfolio.

Businesses are adopting a flexible workplace model for a long list of reasons, including:

  • Reduced occupancy costs
  • Increased agility during growth periods
  • Avoiding fixed long-term leases
  • Ability to scale staffing flexibility
  • Protection from market volatility
  • Simplicity when penetrating new markets

Implications for the Midwest

The flexible office space trend has been pervasive across the Midwest, with 189 flexible office locations recorded. Co-working spaces make up the more than half of the flexible office locations in the region.

Haven Collective is a co-working space in Columbus that’s emerged as an ideal workplace for moms and entrepreneurs. There are childcare and fitness options along with a community that holds each other accountable. Co-working spaces like this provide a structured, social environment where professionals can come to work while maintaining connection.

The average monthly price for a co-working desk in the Midwest region is $227 versus the $511 price tag for the average monthly price of a private office.

The majority of shared workspaces are owned and operated by local businesses; however, global operators such as WeWork and Spaces have been active in the region lately. Cost, flexibility, innovation and talent management are all factors driving demand for flexible space.

Download the full report for an in-depth examination of the global trends taking place within the flexible office sector and the implications for the Midwest.