During 2018, traditional methods of office leasing were continually disrupted by a slew of new trends. Fueled by CRE innovations, this metamorphosis of the contemporary workplace has bred a unique culture of creativity, freedom, and collaboration. What was once considered as out-of-the-box now stands as the global norm, and investors everywhere are eager to explore this new business model in 2019.
Today, a typical day at the office takes on a completely new design – all thanks to these 3 revolutionary office leasing trends dominating CRE.
Coworking Explosion Continues
The last decade has seen a monumental explosion in the trend of coworking. Experts are calling this ‘the new norm’ for offices around the globe and employees everywhere are being liberated from the daunting shackles of a traditional 9-to-5.
The flexible workspace industry has gone through a quantum leap in popularity, and its strong worldwide presence is proving to redefine CRE’s office market. Studies show that this business module is here to stay, with an anticipated 3.8 million coworking members by 2020, and jumping to an astounding 5.1 million in 2022.
Hybrid workspace models should be on every CRE professional’s watch-list this coming year and beyond.
As the modern office culture is being rewritten, the current design schemes are predominantly inspired by the people who work there. This human-based method of creating a new office layout is continually striving to flow with the average workday, rather than against it.
One of the most popular amenities we’re expecting to see in 2019 is multipurpose collaborative spaces. These unique areas are meant to provide employees with an appropriate change of environment and inspiration all while enhancing their productive experience.
Be it in-office cafes, chic lounges, or even soundproof office pods – more and more developers are including these areas in their floorplans and investors are demanding their presence.
Flexible Lease Terms
As the scale and scope of offices expand, the accompanying leases also undergo a major rewrite. Lease agreements need to keep up with the industry’s evolving wants and needs, and in 2019 we are anticipating to see a general increase in flexibility. Across the board, operators are looking to negotiate terms that facilitate their goals while reducing the potential risks.
When entering into an agreement with property owners, it’s becoming commonplace for companies to enter into a contract where they occupy and upkeep the property by carrying out the basic functions which coincide with their business model. As retribution, the property owners receive a set portion of their tenant’s earnings.
This type of lease agreement is popular amongst hospitality businesses, such as hotels and restaurants, but is relatively new to the office market. Unlike a traditional iron-binding lease, occupying companies are protected from external risk factors such as a market crash or economic discrepancy.
Times are Changing, and So Is the Workplace
The scope of unconventional office leases is changing every day as we move closer to finding the ideal workspace. Investors and companies at large are scanning CRE’s marketplace to find spaces that coincide with their goals for attaining productivity through creativity, and property owners are continually striving to adapt their building structure to meet these trends.
What workplace trends are you looking out for this year?