According to forecasts by Workthere, a subsidiary of real estate advisor Savills, demand for "flexible workspaces" is expected to be strong in the second half of the year. Even though occupancy dropped from 79 percent before the Corona pandemic to 65 percent in November 2020, Workthere's real estate experts expect a slight upturn as early as the first half of 2021. Demand for day passes for larger office space and meeting rooms, in particular, will increase. With sufficient space, companies can once again occasionally hold face-to-face meetings, subject to compliance with the minimum distance and hygiene regulations.
Real estate experts from Savills and Workthere expect a boom in demand in the second half of the year. One of the reasons for the increase in demand is that the contracts of existing leases have not been renewed temporarily, but most clients are waiting to do so as soon as the provisions of the Corona pandemic ease again. Companies that were previously characterized by a traditional office structure and fixed office space are also increasingly interested in flexible options.
Other companies no longer want to be tied to inflexible leases with fixed costs in the future and are signaling a clear interest in flexible office solutions. In terms of the price structure, rents will fall significantly in the first half of the year. Since office space in major cities is currently still largely vacant, operators of "flexible workspaces" will offer price discounts in order to retain their existing customers and attract new ones. As soon as demand increases, office prices can also be expected to rise. Demand for "Flexible Workspaces" is also expected to remain at least constant in peripheral urban locations, as companies want to offer their employees the opportunity to work close to home.
Source: Workthere/Savills
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