The Growth of Choice & Added Value in Flexible Workspace - Kieran Gartshore - The Instant Group
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
WORKTECH - Sydney 21 Feb 2019 The Growth of Choice & Added Value in Flexible Workspace Kieran Gartshore – The Instant Group Private and confidential © Instant 2019
Instant
By Numbers
NEWCASTLE BERLIN
DALLAS
LONDON
HAIFA
SAN NEW YORK
PARIS HONG
FRANCISCO
KONG
KUALA
LUMPUR
SINGAPORE
SYDNEY
13 #28 #1 14,000 4,300 2,280 10,500 >100,000 60,000
offices, Sunday Times digital lead unique flex operator cities, 153 solutions sqm of people placed
250 staff International gen platform workspace partners countries each year managed in flex space
globally Track 200 for flex space listings worldwide workspace annually
2 Private and confidential © Instant 2019
Our mission today…….
Occupiers
Operators
Landlords
3 Private and confidential © Instant 2019
Flexible
workspaces then…
Prominent centre branding
SME focused
Traditional office functions
Company name boards at reception
Individual, cellular offices
Pay-per-use services
Basic IT infrastructures
4 Private and confidential © Instant 2019
Flexible
workspaces today…
Corporate and SME focused
Autonomous work environments
Minimal, discrete centre branding
Collaborative and communal space
Larger offices - design & brand flexibility
Touch down & co-working space
Cutting edge technology
Packaged services
Private and confidential © Instant 2019
Industries undergoing disruption
• Automotive
• Hospitality
• ICT
• HR
• Real Estate
6 Private and confidential © Instant 2019
‘50% of organisations that have seen an
Work is changing increase in their use of contingent workers
over the last 5 years’
EY Contingent Workforce study 2016
“30% of all commercial space
will be consumed as flexible
space by 2030 – today it is “Half of today’s work activities could
2.5%.” JLL be automated by 2055” McKinsey
“By 2025, millennials will
represent 75% of the workforce.” “75% of occupier searches for
Deloitte office space now start online”
JLL
“In 1990 the average length for new leases was
23 years in the UK. It is now 7 years to break or
expiry.” “By 2020, nearly 50 billion connected devices will
Strutt & Parker have the capability of plugging into an office
building.”
Gartner
7 Private and confidential © Instant 2019
And real estate is responding…
Average lease length
(1990 - 2017)
2005
15 years 2005 90% 2016 3 15,500 75%
7.1 years
2017
Average lease lengths have The serviced and co-working markets are 75% of the FTSE 100 have flexible
decreased considerably over the last still growing at a high rate workspaces in their portfolio
few decades, with the average lease (Instant prop. data)
length now at 7.1 years – and a It is forecast that the number of global
continued increase in the prevalence co-working spaces will grow from 14,411
of medium 5-9 year leases in 2017 to just over 30,000 in 2022
(BNP Paribas) (GCUC)
8 Private and confidential © Instant 2019
What are the solutions? Co-working Serviced Office Managed Office Sublet / Grey Space Co-working spaces involve a A serviced office is an office An individually tailored A sublease is formed when the shared environment, most that is fully equipped and workspace solution procured tenant grants a secondary commonly an office, through managed by a specialist and managed by a single lease (with the freeholder’s which individuals not engaged operator, which then rents supplier from start to finish. All permission) to a third party – a by the same company work individual offices or floors to costs are included in one subtenant. side-by-side, and which is other companies on a cost per rentalised fee. charged on a monthly desk basis. membership basis. 9 Private and confidential © Instant 2019
Sector: Financial Services
Geography: Kuala Lumpur
Size: 9,000 sqm
Term: 9 years
10 Private and confidential © Instant 2019The Flexible Workspace Market 11 Private and confidential © Instant 2019
Centre Growth 2018 Eastern
2018 Europe
92
North
America Western
Europe
563 1,007
Asia
Caribbean 440
Central 0
America
2
Africa
South
America 86 Oceania
65 Middle
East 119
63
*not cumulative
12 Private and confidential © Instant 2019The Global Flexible Office Market
GLOBAL MARKET SIZE
$36.6 billion based on industry revenue
(AUS $)
30,000+ flexible office centres
GLOBAL MARKET ESTIMATE BASED ON 24,060 “INSTANT KNOWN” CENTRES
LARGEST OPERATORS CENTRE SPLIT BY REGION
15,500+ co-working spaces
18% 20%
28%
Forecast growth of 15% per annum 82%
24%
28%
Sources: Instant proprietary data, Deskmag ‘2018 Global Coworking Forecast’
13 Private and confidential © Instant 201914 Private and confidential © Instant 2019
Sydney Melbourne 15 Private and confidential © Instant 2019
Proliferation of brands & acquisitions 16 Private and confidential © Instant 2019
‘Nichification’ of product offer to differentiate – more choice
Twin forces of global operator consolidation, and
proliferation of “indies” in local markets
Globalisation of flex, driving greater choice for
corporates
Enablement of digital platforms
Landlords developing their own offer: growing
financial acceptance of flex as value enhancer
Flex & Space as a Service takes root as a
consumption based mainstream offer
Occupi
Industry players adapt or die. Outsourcing blends
ers
more choice and solutions than ever before
Operat
ors
17 Private and confidential © Instant 2019
LandlordsQuestions? 18 Private and confidential © Instant 2019
You can also read
