Flexible workspaces within corporate real estate

Building flexibility within real estate is challenging due to its inherent characteristics of being immovable, large and expensive, making any transformation a complex matter. However, it is possible to achieve different types of flexibility within the different types of corporate real estate an organisation owns. The literature surrounding the development of more flexible workspaces within the corporation has a focus on the physical layout and internal usage raising issues such as non-territorial spaces, hot-desking and hotelling. Flexible workspaces, however, can also take place outside an organisation. As technology allows the office space to evolve beyond its industrial heritage, space as a service becomes another option for corporations to unleash flexibility. External flexible workspaces are offices with different levels of curated services available to hire on an ‘easy-in, easy out’ basis. Originally used by freelancers and start-ups seeking affordability, the current flexible workspace market has expanded in terms of the number of operators, the magnitude of take-ups and the type of users, which now also encompasses large corporations. To date, very little research has been made on the adoption of flexible workspaces by the corporate sector. This study is aimed to provide an overview from academic and nonacademic sources of the approach corporations take to use such environments, what drives them to flexible workspaces and the perspectives for the future in a post-pandemic world. It is found that from cost reduction to talent retention, the reasons why corporations are attracted to flexible workspaces vary, as well as their patterns of usage, which range from housing a flexible workspace within their portfolio, to outsourcing workspace to an operator. As Covid-19 has made organisations rethink the amount of real estate they occupy, it is expected a greater drive from corporations to incorporate flexibility and allow agility in uncertain economic times.