The Leader Magazine

MAR 2019

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F E A T U R E A R T I C L E 30 March 2019 the leader Unlocking the value of flexible workspace for the corporate real estate leader T he growth of the flexible workspace sector is well documented, and deepening partnerships with landlords and developers will help to fuel this growth. But what does this mean for the occupier and how do corporate real estate (CRE) leaders unlock value for their operational real estate? t he ' f lex and Core' approach Any trend in real estate is occupier-led – over 90 percent of our clients are seeking flexibility of lease term and, as a solution to this demand for flexibility, Colliers pioneered the Flex and Core model, whereby occupiers secure long-term leases with landlords (or, in some cases, operators) for their core space, and leverage the flexible-workspace sector to accommodate on-demand space, such as short-term project space, and access amenities, such as lounges, meeting rooms and event spaces. Here, we will explore how to adopt this model. Some of the issues with this model revolve around density of space, privacy and security, and level of physical product. Here, we will go through these items to explain how these can be overcome for the CRE leader. Density: this is usually the key issue when we speak with our occupier clients. Most flexible workspace operators deploy a density of 1:50 sq. ft. (1:4.64 sq. m.) and some of these operators non-sensically present cost savings largely driven by squeezing densities. While we agree that smarter, more efficient, uses of space can create a more dense environment without impacting negatively on the user from productivity or wellness perspectives, there would still be very few occupiers who wish to hit a density of 1:50 sq. ft. The Flex and Core model takes the occupier's standard density and is able to creatively move this number by leveraging on the shared amenities within a flexible workspace operator's by Jonathan Wright

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