The Flex Economy

How decentralised workspaces are breathing new life into city centres

In recent years, there’s been a rapid rise in the availability of flexible workspaces. Colliers International suggests that the total number of flexible workspaces in Europe increased by 205% between 2014 and 2018 and that the number of such providers grew by 138%. It’s easy to see why but what is new is that such workspaces are increasingly popping up outside city centres, in what can be loosely termed as ‘outer-city’ areas. In the UK, for example, smaller towns and cities have experienced double-digit growth in the availability of flexible office space. What’s driving the rise of the suburban flexible workspace?

DRIVERS Small business growth

The proportionate contribution of smaller businesses to global economies is increasing. In the EU, SMEs now account for 99% of all businesses. This is important in the context of the localisation of flexible workspaces as many businesses are local and may have changing office space requirements.

‘Hub and spoke’ real estate models

There is a rising use of flexible workspace options in lower cost suburban or satellite town locations, while linked to a central hub in a city centre location. While professional services remain a core and growing customer segment for flexible workspace providers, the ‘hub and spoke’ model is leading to demand from businesses in sectors such as retail, utilities, construction and transport that are looking for flexible and low-cost options to house their office workers.

Workforce transformation