It’s clear that flexible space is playing an increasing role in the evolution of real estate and won’t be going away anytime soon. JLL’s 2021 Global Flex Space Report predicts by 2030, 30% of office space will include some type of flexible space. 

Demand for flexible leases is rising. Tenants are increasingly requesting expansion, contraction and termination options in leases and are favoring short-duration commitments as they await greater clarity in business conditions and workplace strategies. In 2021, flex space accounted for 3.6 million square feet of leased space, according to JLL research.

While the growth in flex space will affect players in all parts of the real estate process, there are opportunities and implications for property owners that are significant and need to be considered proactive.

Here are three things to know when considering flex space within your property:

Whether you manage your own flex space, enter into a sublet model with a traditional flex operator or decide on a management agreement with a white-label service provider, it’s important to curate the experience people have when they are inside the space. Highly skilled experience management teams with a marketing mindset can carefully curate spaces and activities that create the elusive FOMO, from touch-free entrances to pop-ups that forge a sense of community. Remember, people are coming into the office for an experience they cannot get in their homes—enticing them in is key! 

Some owners will look to their property manager to provide those services, but creating and managing a vibrant experience may not be in your existing team’s wheelhouse. That’s where a partnership between a landlord and a seasoned flexible space operator with teams trained in hospitality can help you minimize your risks, maximize your opportunities and set you up for success.

Click here to learn more about how you can elevate your asset.