Attracting and retaining tenants in the flexible space market
A recent survey by The Instant Group of 180 flex firms highlighted trends in the flexible office sector of the property market. Notably over three quarters indicated they planned to expand in the next couple of years.
Europe was likely to be the area with the highest growth and expansion will be focussed on private offices and meeting rooms. This is largely driven by an increase in use of these facilities over the last year (36% and 52% respectively), which is expected to continue over the next couple of years.
The survey also revealed some interesting insights into client behaviour.
What is the biggest factor in attracting tenants? Accommodating and cheerful employees came out on top, with 70% of respondents claiming this was the reason they chose to work from a particular flex space.
Friendly staff far out ranked brand awareness (42%) and cost effectiveness (35%) highlighting just how important the right team can be in attracting and retaining customers.
Importantly the survey highlighted sustainability as one area of potential disconnect between customers and providers. It appears that 44% of flex space operators have noticed increased demand for building sustainability from customers, particularly in relation to understanding recycling policies (29%), use of renewable energy (25%) and sustainability certifications (21%).
However, counter to this increased interest in sustainability from customers, 35% of operators did not know whether they were using renewable energy and a further 27% admitted to not sourcing renewable energy.
Instant Executive Director of Partnerships in the UK, Gavin Foremann, noted “operators who make use of reliable market data and insight will be able to make smart investment decisions to meet evolving demand and in turn increase revenue”.
At Office Space in Town (OSiT) we are incredibly aware of how location and amenities (as well as cost) can help to build a successful workspace brand. You can read more about our approach to providing city centre serviced offices and why we do things the way we do.