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A new expectation of workers’ rights has gripped the UK. Flexible working is becoming an integral part of companies around the world as we try to balance the time we spend at work and the time we spend for ourselves.
Flexible working is becoming one of the most important success stories for the commercial real estate sector, according to The Instant Group’s Global Cities Report. When first comparing flexible workspaces in key cities around the world, data shows the market has grown a massive 18 percent in just 12 months.
With emerging economies growing proportionally more than more established ones, flexible working is changing the way we all work. In the latest and most comprehensive market research, Instant shows which markets are leading and where the industry is headed.
Renting a desk in London is 19 percent cheaper than renting a desk in New York
$ 897 – average London job
With 16 percent growth in 2016, London saw massive expansion of new operators and additional centers, with major expansions being made in cities like Manchester and Birmingham.
With an average of $ 897 for a job in London, the capital has the fifth highest job rate of all key cities after New York, San Francisco, Chicago and Los Angeles, mainly due to increased demand within the city as large-scale projects start.
The US has the highest average desk prices in the world
$ 1,110 – average job in New York
A massive 37 percent of the space in New York, Los Angeles, Chicago, and San Francisco is now labeled collaboration – an indicator of how quickly collaboration has penetrated the flexible labor market in the United States. Despite the maturity of these key cities, each has grown more than 15 percent over the past year.
Average workstation prices in the US are more than $ 900 per person per month. This makes it one of the most expensive locations in the world to work with. Even so, US cities are on an upward trend, growing 12 percent in the past 12 months.
Research shows that the number of flexible workspace providers in the United States exceeds 4,000, half of which are concentrated in California, Texas, Florida, New York, and Illinois, with California leading the way for the most flexible and dedicated spaces. Key users of collaboration in these areas include technology, advertising, media, and IT companies.
The demand for flexible office space in Australia triples in two years
$ 565 – average job in Sydney
The number of requests for flexible work in Australia has tripled in just two years, while the number of collaborative and flexible office space has increased by up to 36 percent in five years.
This massive increase in Australian supply exceeds that of the world’s largest market for such space – London – which grew from nine to 16 percent in 2016. It also outpaces growth in New York, which has long been one of the fastest growing flexible jobs in the world.
Sydney saw growth of 19 percent in 2016, with co-working and hybrid spaces growing three times faster than serviced offices. With an average workstation rate of USD 565 per person per month, Sydney is the eleventh most expensive key market for renting space, while Melbourne is the 13th at USD 480 per person per month.
The flexible workspace market in Hong Kong has doubled in two years
$ 616 – Average Hong Kong Job
The flexible workspace market in Hong Kong saw the market grow 16 percent last year, doubling its size in just two. Hong Kong now has 202 flexible workspaces compared to 330 in New York and 1,136 in London.
Growth is being driven by increased demand for flexible space in a city that has some of the most expensive real estate in the world when it comes to the conventional office market, and more and more businesses are realizing the benefits of getting flexible space to save money. Average desk prices in Hong Kong are $ 554 compared to $ 897 in London, ranking 10th among the key markets.
Renting a desk in Singapore is 57 percent cheaper than in New York
$ 472 – average job in Singapore
With center growth of 22 percent in 2016, Singapore was an important part of the APAC market development and is currently the 14th most expensive place to rent desk space in all major cities. Over 90 percent of the co-working centers are in the Singapore CBD, where desk space is 57 percent cheaper than in New York at $ 472 per person.
The cooperation area in the city has already increased fourfold, but further growth is expected in the second half of 2017 as new operators open locations in Singapore.
The cost of desks is falling year on year in Shanghai
$ 505 – average workplace space in Shanghai
In Shanghai, flexible workspace centers have grown by 20 percent over the past three years. 62 percent of all cooperation centers are located in the central areas of Huangpu, Jing’an and Pudong. The rapid rise in collaboration is largely due to government support, strong infrastructure, and a growing number of millennial workers, which has led to an increase in centers and market operators. It is currently the twelfth most expensive place to rent a desk of any major city.
The future of flexible working will lead to a more consumed workplace
The key findings of the Global Cities Report reveal several common themes in all world cities that will determine the expected trends for the future:
User demand will shape the market more than ever
The operators can observe the customer experience much faster and thus adapt the offers accordingly
It is expected that more hybrid spaces will emerge as more operators recognize the trend of collaboration
Other landlords will focus on the operator model to drive engagement with users