Flex is moving from a buzzword to a boardroom essential. What was once seen as a niche solution for start-ups and freelancers, is now a strategic lever for landlords and occupiers alike. At our recent panel event with Trustek, we gathered industry experts to unpack why flex is no longer just a trend and is becoming a necessity for commercial landlords.
The pandemic accelerated a shift that was already underway. Business of all sizes now demand agility (or flexibility if you will), and traditional long-term leases are often seen as a liability. As Peter McNamara (Union Investment Real Estate GmbH), from our panel, put it “Committing long-term is risky. Flexibility in lease structure is the answer.” We’re now seeing traditionally big hitting companies demanding flexible spaces with less square footage and shorter leases.
For landlords, the return on investment from flex spaces is clear and compelling:
- Short-Term Leases, Long-Term Value: Flex allows landlords to capture tenants who might otherwise be shut out by long-term commitments. This means higher occupancy and a more diverse tenant mix.
- Reduced Capex Exposure: Fit-out costs are soaring, and the days of sinking huge capital into speculative buildouts are fading. Flex models shift some of that risk allowing landlords to offer ready-to-go spaces with minimal upfront investment.
- Instant Market Visibility: As Bex Moorhouse (Work Reconstructed) highlighted, flex can give landlords an immediate visibility in unknown markets or locations.
There’s a common misconception that flex is a risky play. But, as McNamara argued, “there’s obvious money on the table in flex if you know what you’re doing.” The key is understanding what occupiers actually want and delivering it with the right service mindset. That means moving beyond simply providing desks and Wi-Fi, and creating environments where business can thrive.
The conversation made one thing clear: flex is not about following a trend. It’s about future-proofing your asset, diversifying income streams, and meeting the needs of your tenants. As more landlords embrace flex, the winners will be those who approach it strategically and balance risk, reward, and the real needs of their occupiers.
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