“While already popular beforehand, the hybrid work model gained even more traction during the Covid-19 pandemic – but in a post-pandemic world, it's clear it's here to stay. This has forced businesses to re-evaluate their office needs. Many have shifted from traditional long-term office leases to approaches that empower workers to spend more time at local flex spaces”, says Joanne Bushell, MD, IWG, South Africa
This is not just a trend, but a significant opportunity for property owners and investors to meet the rising demand for flex space outside of major city centres. Partnering with IWG is the most straightforward way to seize this opportunity. As the following stats show, the future of commercial real estate is centered on hybrid workspace – presenting a promising time to embrace the movement.
Statistics show that hybrid workspaces are the future
Numerous studies have indicated that flex spaces are part of the future of work, and hybrid working is already the reality. Research shows that, in total, 52% of employees are working in a hybrid model, and 54% expect hybrid working in the future.
With more businesses planning a complete shift to flexible working, how do we know flex space is the future? Here’s the research that proves it.
- 83% of workers consider a hybrid workplace model as the ideal working environment. According to Accenture's Future of Work Study, a hybrid workplace model is not just a preference, but an ideal working environment for 83% of workers. The study also revealed that workers who have the flexibility to work from anywhere are 2.3 times more likely to stay with their company, even in high-turnover industries. This underscores the significant impact that hybrid working can have on talent retention.
- 77% of workers say a place closer to home is a must-have for their next job move. IWG research found that the ability to ditch daily commuting was paramount, with more than three-quarters of those surveyed saying that somewhere to work closer to home was essential for their next job move. The demand for local flex space has become even more evident with instances of workforce migration from cities to suburbs, where affordable living is a driving factor.
- If asked to return to a central office five days a week, 50% of workers would quit their jobs. Somewhere to work closer to home isn't just a requirement for new jobs, either – half of those questioned said they would quit their job if asked to return to a central office five days a week. With more businesses concerned with their staff's well-being, adopting a hybrid model seems the obvious choice for increasing staff downtime. Being closer to home and commuting less allows for family time, community engagement and rest, factors linked to higher work-life balance.
- The flexible workspace sector is set to grow 600% by 2030. IWG market research highlights how the flexible workspace sector will grow exponentially over the coming years, with 30% of all office space set to evolve to hybrid workspace in that same period.
- Membership of IWG's global on-demand scheme rose by 93% globally in 2022, indicating the huge rise in demand for hybrid workspaces.
Big opportunities
By taking advantage of the global reach and expertise of IWG, property owners and investors have the opportunity to revitalise vacant or underused spaces and generate superior returns in sought-after areas. With hybrid working only set to increase, top-tier flex spaces are the future of commercial real estate.
IWG is looking for partners to open local workspaces in the heart of communities close to employees' homes. With their help, landlords and investors can turn empty buildings into profitable, income-generating, flexible workspaces. Find out how to partner with IWG here.
