“Flexible office space” is an umbrella term that can refer to various workplace models, most of which involve multiple businesses operating in the same facility. It can also simply refer to a multipurpose area within a workplace.
Defining flexible office space
Since flexible office space has several distinct meanings, it’s important to understand the various usages and clarify which one you’re referring to. Let’s look at the most common ones.
Flexible workplaces
Frequently, flexible office spaces refer to coworking spaces. In these arrangements, freelancers and employees from different businesses or organizations work alongside each other in a shared workspace.
Executive suites are a similar form of flexible office space, but they’re usually more private than coworking spaces. While organizations still share certain common areas in an executive suite, they usually rent separate offices or even whole floors where they do the majority of their work. Individuals from different organizations don’t necessarily work alongside each other, but they share a building and certain amenities. Executive suites are also usually more expensive than coworking spaces.
Incubators and accelerators make up two more variations of flexible office spaces. These are similar to coworking spaces, but they are specifically geared toward helping companies grow. Incubators are more oriented toward startups, and accelerators help established businesses accelerate their growth.
Sometimes, flexible office spaces may refer to hybrid workplaces, where employees work from home or on-site as needed. But while the hybrid or dynamic model gives employees more flexibility, that usually isn’t what someone means by a flexible office space.
Flexible office layouts
When a designated area within an office can serve multiple purposes, that may be considered a flexible office space as well. The space is flexible because it hasn’t been allocated or assigned to any one particular purpose, making it suitable for meetings and collaboration or multiple independent workspaces. The space may be simple to reconfigure or simply have a layout that includes multiple types of space.
In many cases, flexible office space overlaps with the concept known as activity-based working. Like activity-based working, flexible office spaces often forgo having a dedicated workstation for each employee. Instead, they offer a variety of spaces optimized for particular activities, and employees are free to move around as needed, working wherever they feel is best at a given time.
While “flexible office space” is broad enough to refer to any of these workplace models, for our purposes, we’re going to focus on its main usage: shared co-working offices.
In this article, we’ll explore:
● How flexible office spaces work
● Benefits of using a flexible office space
● Components of a flexible office space
● How to tell if this model is right for your organization
Let’s look at the two main ways you can start using a flexible office space.
How do flexible office spaces work?
Flexible office spaces may sometimes be a joint venture between two or more organizations to share the same space for all employees to use communally. In such cases, the partnering organizations usually split the costs for rent, furniture, shared equipment, and anything else that all involved parties may use.
But more often, organizations or individuals seek out a dedicated flexible office space that they either lease or purchase a membership to. Dedicated flexible office spaces are becoming increasingly common, especially across Europe and the Midwestern US.
A number of organizations manage flexible offices for other organizations to use, including:
Many of these organizations have flexible offices around the US and throughout the world. Their locations usually include communal areas, individual workstations, meeting rooms, and other dedicated spaces. In this model, landlords typically provide not only the space itself to work in, but furniture, decor, and office equipment. They compete to offer pleasing work environments, incorporating amenities like cafés, kitchens, lounges, and space for recreational activities.
Rather than maintaining and equipping your own office, you simply acquire a membership, pay for a subscription, or sign a short-term lease to access the facilities these flexible office spaces have to offer.
Prices and structures vary with every organization. While some charge one flat fee to access everything, others charge individually for specific areas or use a tiered price structure based on your specific needs.
What are the benefits of flexible office spaces?
Initially, flexible office spaces were largely used by individual remote workers, freelancers, small start-ups, and burgeoning entrepreneurs. Coworking was (and still is) a cost-effective strategy to get off the ground. But it didn’t take long for established organizations to realize that flexible office spaces have a number of benefits to offer them as well including:
● Lower costs
● Smaller environmental footprint
● Quick move-in
● Flexible leasing arrangements
● Increased networking opportunities
● Improved productivity
● Retain top talent
● Increase diversity
Here’s how it provides these benefits.
Lower costs
When an organization leases an entire building, they’re paying the same amount regardless of whether they use all the space. And some of that space inevitably goes to waste. A few workstations may sit vacant all day, or a meeting room might only be occupied for a couple hours. Assigned desks only get used when the employee is actually on-site and working at that desk.
But with flexible office spaces, multiple organizations and individuals can use that same space much more efficiently. Since different people work different schedules, one person’s downtime is another person’s work time. In one day, the same workstations can be used by multiple people from multiple organizations, greatly increasing utilization of the space.
Other cost savings come in the form of shared utilities, equipment, and maintenance costs. Heating and cooling three separate buildings costs far more than having three organizations share the same building. Nor do you need separate high-speed Internet connections if the organizations share the same space. (You just need your own virtual private networks and cyber security measures.) Similarly, equipment like printers and copy machines can easily be shared within a flexible office space, rather than each organization needing to purchase their own. The downside, however, is that you don’t have as much freedom to purchase and install large specialized assets of your own.
All of this can add up to a dramatic reduction in occupancy costs. According to some reports, organizations that work in a flexible office space save an average of 40% compared to leasing their own space. And those that operate within a major city can save even more—in some cases, as much as 73%.
Smaller environmental footprint
According to a global study from Nielsen, 81% of consumers strongly believe companies should work to lessen their environmental impact. And for organizations that want to take action, there’s great news: the cost-saving aspects of flexible working spaces also make them more environmentally friendly.
Fewer buildings means fewer construction projects. Less heating and cooling means less electricity, natural gas, or other fuels that need to be used. And fewer pieces of office equipment means less production and transportation of that equipment.
Additionally, because flexible office spaces are often also hybrid workplaces, organizations can reduce their environmental impact even further when employees work from home, minimizing the carbon footprint from their daily commutes.
Across the board, flexible office spaces simply tend to be more efficient—not only in cost savings, but also in environmental sustainability, helping organizations do their part to combat climate change and improving their public image in the process.
Quick move-in
Traditionally, when you move to a new workspace, you can expect it to take some time (and expense) to get the new place set up before it’s ready to be used. Not only do you have to locate the new space and negotiate the lease, but you must design the office layout, remodel, install furniture, set up tech infrastructure, and decorate. It can often take several months before you’re ready to move it.
Why not bypass that whole process?
If you’re moving into an existing flexible office space, everything is set up before you get there. All amenities, services, furniture, and equipment are typically included in the membership, subscription, or lease to use the space. Whether you’re a small start-up eager to get off the ground or an established organization that can’t afford to delay, the ease of moving into an already stocked and furnished office can be a huge help. You can start working right away.
Flexible leasing arrangements
Landlords tend to prefer the stability of longer leases, so they charge a lot more for shorter ones. A typical lease for office space is around five to seven years. That’s a lot of time to commit to, especially with how fast circumstances can change. You might suddenly need more or less space, which could put you in an awkward position if you have to move before your lease is up.
But flexible office spaces are known for their flexible leasing arrangements. Most offer pay-as-you-go pricing structures, often on a monthly, quarterly, or annual basis. Some even offer weekly or even daily plans—so you could potentially offer remote employees a stipend for finding a flexible office space near them.
With no long-term commitments, your organization will have the freedom to grow and change as circumstances dictate, and you won’t have to worry about being locked into a lease you no longer need.
Increased networking opportunities
Because you’ll be sharing space with other businesses, teams, and individuals, it makes for a great opportunity to network with them. This can give your own organization more exposure, potentially gaining new business. It also lets you establish new business relationships in your community and discover valuable agencies, consultants, freelancers, and tools.
Additionally, working alongside other teams can foster creativity and innovation. Small start-ups often have a lot to learn from larger established companies, and the reverse can be just as true. Sometimes this happens organically, as people from different organizations have everyday interactions. But you can also make an intentional effort to promote such cross-pollination through shared events like hackathons.
Improved productivity
When employees are trusted and empowered to decide when and where they work, they tend to be more productive. They know the times and environments they work best in. To accommodate and appeal to modern workers, flexible office spaces often include different kinds of spaces to promote activity-based working.
In these setups, employees have access to several different stations optimized for specific tasks. They’re free to move around throughout the day to wherever makes the most sense for their work. And studies have shown this to have a dramatic effect on productivity.
For example, research by Veldhoen + Company showed that employees were on average 13% more productive after switching to this kind of workspace arrangement. And a study commissioned by Samsung found workers in activity-based workplaces to be 16% more productive than their counterparts in more traditional workplaces.
Not all flexible office spaces utilize activity-based working. Executive suites, for example, are more likely to be traditionally structured. But many flexible office spaces are activity based, and this can result in a substantial productivity boost.
Retain top talent
One of the things that most concerns job seekers is how well a position will fit into their lives In other words, what kind of work-life balance can it provide? It used to not be this way; people found ways to adjust their lives to the job. But as more and more people are interested in maximizing wellness, there has been a shift in the way we understand the role of work in our lives
Setting up a flexible work environment demonstrates a commitment to this concept. Allowing people the chance to work when they want, or from wherever they want, and not putting too many limitations on how they do their jobs will allow them to spend quality time doing the other things they like to do. And when this happens, people are happier and more productive.
Designing a flexible office also gives your company some curb appeal. When people come in for an interview, they will be excited to see something new and refreshing, which produces a positive first impression. Later on, when a candidate is deciding between one position or another, the way they felt in the office could end up pushing them towards deciding to take your offer.
Increase diversity
One nice feature of a flexible work environment is that it allows you to bring in a wider range of people. For example, you may be able to work with people from another part of the world, or you might just simply have the chance to interact with someone who couldn’t work in another environment..
This diversity helps to stimulate collaboration, but it also will make your company a more exciting place to work. Few people want to be surrounded by a group of people with too-similar profiles and backgrounds. It’s much more exciting to work with like-minded people who are different from you, as it makes the workplace more stimulating and dynamic, helping to improve engagement and productivity.
This can be a major selling point when meeting with top talent. And it’s also a way to keep them stimulated and engaged once you’ve managed to secure them on your team.
Components of flexible office space
Generally, flexible office spaces are suited for a variety of work activities, roles, and industries. The more use cases a facility appeals to, the more potential tenants it can attract—which is especially important when a landlord is offering short-term leases. Here’s what you should typically expect to see in a flexible office space.
Shared amenities
Flexible office spaces need to provide all the resources workers need to be comfortable and effective. This includes spaces like a kitchen and/or cafeteria space, quiet areas, and break rooms, as well as equipment like storage lockers, printers, and copiers. Ideally, workers should have all the amenities they need to spend as much time at the office as they need or want to.
Hot desks
Hot desks are workstations that multiple employees share throughout the day or week as needed. In a traditional office, one employee may be assigned to a workstation in the morning, and another in the afternoon or evening. But in a flexible office space, these workstations are more likely to be available by reservation or on a first-come, first-served basis. This helps maximize the utilization of the workspace, and gives workers greater flexibility when it comes to where and how they work. They can reserve a space in advance and rest easy knowing that they have the space they want, or they can simply not worry about it until they arrive at the office.
Open office space
Open floor plans allow more workstations to fit in a single space, which allows a flexible office space to accommodate more workers. The trade off is that it’s not ideal for workers who need to take phone calls or collaborate, but it does allow groups to reserve workstations together, and it can encourage the sort of networking opportunities flexible office spaces are known to provide.
Meeting rooms
Especially if you’re leasing a flexible office space for multiple employees, you’ll want to be sure you find one with enough meeting rooms to meet demand. Since you’ll be sharing the space with others, you may want to ask about usage patterns and availability of meeting rooms as you evaluate your options. When employees need to collaborate, you don’t want them disturbing other tenants or discussing confidential information in shared spaces.
A variety of workstations
The more comfortable workers are in a flexible office space, the more they’ll choose to use it. Since flexible office spaces are intended to facilitate a wide variety of work activities and cater to a range of roles, you should expect to see an assortment of types of workstations and seating arrangements, such as traditional desks, standing desks, tables, lap desks, neighborhoods, booths, couches, armchairs, and yoga balls. This empowers workers to choose the spaces that fit their moods, physical needs, or tasks throughout the day.
How do you know if a flexible office space is right for you?
We’ve covered a lot of positives for flexible office spaces, and there’s no doubt that they have a lot to offer. But they aren’t right for every organization. So let’s consider a few specific examples where you may—or may not—want to consider moving to a flexible office space.
You may want to consider a flexible office space if:
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- You’re a start-up that expects to grow quickly.
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- You’re an established company that wants to reduce your real estate portfolio.
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- You’d like to foster more engagement with other teams and organizations.
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- You have a mix of in-person and remote employees.
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- You need more flexibility in your lease arrangement.
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- You’d like to lower your environmental footprint.
You may not want to consider a flexible office space if:
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- Your line of work requires employees to be in an assigned place at a given time.
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- You value the independence of leasing your own space.
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- You need a workplace that is quiet and predictable.
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- You need specialized equipment you can’t deploy in a flexible office space.
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- Your business deals with sensitive data, which would be too difficult to secure.
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- You take pride in your unique workplace culture, and you don’t want to lose that.
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- The space you currently have is working well, and there’s no need to change it.
Ultimately, you know your own organization, and you’re in the best position to determine whether a flexible office space would be a good fit for your needs.
Another way to give employees flexibility
For businesses that want to stay agile, use less space, and provide employees with flexibility, a hybrid workplace model is another increasingly popular choice. In fact, if you lease a flexible office space and your employees work remotely part time, you’re already embracing the hybrid workplace model.
In The Rise of the Hybrid Workplace: Strategic Opportunities for the Post-Pandemic Office, we explore what sets a hybrid workplace apart, why businesses turn to this dynamic model, and how to decide if it’s a good fit for your organization.
