IWG has published a new white paper, The Future of Work: a trends forecast for 2022, which will be of particular interest to landlords. Focusing on ten key trends that have emerged from the hybrid working revolution, it foresees major changes ahead for workplaces and working practises. In the new world of work, local flexspaces are set to rise, while an increasing number of city offices will likely be repurposed.

Reducing city costs. Rejuvenating suburbs.

The Future of Work identifies a trend where more companies will downscale their central headquarters and give their employees the flexibility to work at local offices or coworking spaces as well as from home. With a smaller CRE footprint, companies can look forward to reducing rental expenditure, utility bills, cleaning fees and office equipment costs. (Not to mention their carbon footprint.) In fact, Global Workplace Analytics, estimates the average employer could save approximately US$11,000 (about AUD15,000) per year per person working hybrid.

Meanwhile in the suburbs, the demand for workspaces is set to rise in 2022 and beyond. This will give property owners the opportunity to profit from repurposing their existing commercial spaces into workspaces. In the UK, for example, IWG has seen demand for its flexible workspaces increase significantly in suburban areas like Bromsgrove (+153%), Andover (+86%) and Havant (+79%). A major factor for this is number of companies utilising the hub-and-spoke model, which gives them access to satellite flexspaces and a slimmed-down central office.

Another benefit of the increasing trend for local flexible offices and coworking spaces is the rejuvenating effect it is having on the fortunes of suburbs and small towns. According to a recent report by IWG and Arup, rural and suburban areas in the UK could receive an injection of £327m (about AUD575m) in spending a year. It is also estimates they could create over 4,000 new jobs.

Mark Dixon, IWG’s Founder and CEO, says: “With hundreds more rural and suburban flexible working locations expected to open in the coming years, we expect a wide range of vibrant local communities to develop with thriving businesses at their heart. Our focus at IWG is on providing local workplaces that people can access close to home, no matter where they live.”

Collective creativity and collaboration

The central hub will continue to play a part in the future of working. Albeit one that is centred around collective creativity and culture-building.

According to The Future of Work, there will be a shift towards offices that are fitted out as social hubs with bars, wellness spaces, expansive communal desks and residential-style lounges. The office will evolve into place that promotes creativity, relationship building and face-to-face communication between co-workers. While the hybrid working model will enable workers to utilise these new facilities in ways that best fit their own lifestyle and working requirements.

A brighter future from the future of work

The Future of Work also details other trends, including a new focus on employee wellbeing, an understanding of the many sustainability benefits associated with hybrid working, and an increasing call for hyper flexibility from employees. Companies will also be looking for premises that help them achieve their ESG goals. “We’re seeing truly era-defining changes that will have a tremendous impact on future generations,” says Dixon.

To read IWG’s white paper on The Future of Work, click here. 

Flexible workspace is the fastest-growing sector of the global workplace market. Make the most of this exciting investment opportunity by partnering with IWG today.

Related Reading:

The Role of Franchise Operators and Landlords in the Future of Flexspace

Suburban rejuvenation. New places for workplaces. New opportunities for landlords.

What will new work trends mean for landlords in 2022?