Ever since Covid appeared we have felt sure that the serviced or flexible office market would grow massively – for two reasons:
- The increased need for flexibility involving the length of commitment. In other words, keep it quite short term in case the business model changes.
- The increased need for flexibility on location. Many staff no longer want to travel great distances to work in the head office when there is no real need to be there.
Without doubt the lockdowns started the thought process, when people had to work from home. Consequently, the balance of power has shifted quite radically, because the contractual requirement for employees to go to the office is being substantially eroded.
As a consequence of lockdown, the balance of power has changed quite radically. The contractual requirement for employees to go to the office is being substantially eroded.
Currys abandon their leased HQ to move into serviced offices
And now there has been a much bigger observable step forward. Currys have announced that they are shutting their big HQ and are instead signing a deal with WeWork. They are taking a flexible, serviced office in Waterloo for 400 people with the rest having access to satellite offices around the country.
Critically, Currys are moving their entire operation into the serviced/flexible office market. Clearly they believe this is the way forward for the future and it seems inevitable that other corporates will follow. Yes this will likely cost more to house their staff. However with employees having acquired the whip hand in so many cases, companies seem to have little option to do otherwise.
There is still a very healthy market take up for the best and environmentally up to speed offices. However if this trend gathers pace, we could well witness a lot of mediocre offices left unused!