A new survey launched by flexible workspace provider, Orega, has revealed that flex space has now become a mainstream property strategy with 55 per cent of businesses surveyed saying they now occupy some form of flexible office space. And of those not yet occupying any flexible space, over half, (52 per cent) said they would be likely to consider taking some flex space in the future. Only 21 per cent said this was unlikely.

The independent survey of 500 business leaders and 2,000 UK office workers also revealed London and the North West saw the biggest vote for flex going forward with 65 per cent and 59 per cent respectively of those surveyed saying they would consider taking some flex space in the future. Flex is also most popular among financial/ professional services and IT businesses where 63 per cent of such businesses said they would likely consider taking flex space.

Fifty-nine per cent of businesses said they now see flex space as a viable or equal option to traditional space with only 10 per cent saying it was a poor relation- a massive change to perceptions from only a few years ago, when using flex space or a serviced office was seen as a lower step on the ladder to getting more permanent lease-based office space.

And the most important reasons given as to the attractions of flex space are flexibility, (37 per cent), location, (27 per cent), price (23 per cent) and “our staff like it” (20 per cent).

As well as the flexibility to alter space requirements more easily, businesses can now locate to well designed and centrally located offices that might otherwise have been unaffordable; enabling them to both attract and retain the best staff. Flex has entered the mainstream as a viable alternative to traditional space. It looks likely to stay that way.

Other highlights of the survey revealed:

• The drivers for choosing office space- keeping employees happy more important than cost.

Wellbeing of staff, for the first time in the Orega survey, is the top driver in the decision for companies to choose the right office space, voted by (87 per cent) of businesses and higher in ranking than even the quality of space (86 per cent) and cost of office space and ease of travel access (83 per cent).  Quality of IT provision (82 per cent) came close behind.

• Who is moving space?  Businesses appear to be staying still

Businesses revealed they were cautiously optimistic about their prospects. Whilst not currently expanding their office footprint, 64 per cent said they would keep the same amount of space or reconfigure it.  Much fewer said they were thinking of reducing their space than revealed in Orega’s previous surveys in 2021 and 2022, when well over a third (37 per cent) of businesses said they planned to reduce their office space. Only 13 per cent of businesses now surveyed said they planned to reduce the size of their office space and 10 per cent said they would increase it. A further nine per cent said they would keep to the same size but allow work in flexible workspaces near to home.

Additional good news for landlords is that businesses say that if the office meets the criterion they need, they are likely to stay. A fifth (21 per cent) said if their requirements were met, they would stay between one to two years in the space, 33 per cent said between three to five years and 36 per cent said more than five years. 

• What businesses and employees really want from their office space

The office remains recognised as having an essential role to play in the world of work by both business leaders and their workforces. Eighty-three per cent of businesses said they saw it as a place to harness focus and productivity, 81 per cent to collaborate and communicate and 80 per cent to help creativity and inspiration and to provide access to technology. Only 26 per cent said it very important as a social hub.

Employees seem to agree with 75 per cent saying having a place to collaborate and communicate was very important to them.

• The flight to ESG continue, fresh clean air and a quiet space to concentrate

Employees pointed out fresh clean air (73 per cent), suitable and controllable temperature (70 per cent), and direct access to natural light (68 per cent) were among the most important criteria for their office space – but the ability to develop relationship with colleagues (75 per cent), a quiet space to concentrate (69 per cent) and privacy (63 per cent) scored highly too.

Sixty-four per cent of the employees surveyed said sustainability was an important consideration in selecting where they work with 16 per cent saying it was extremely important. Only 11 per cent said it was not important.

And nearly half (48 per cent) said that if their workspace was poor quality, they would look for another job, despite having a good boss and a good salary.

Sixty-five per cent of business owners also said sustainability is an important condition of selecting their office space, with 21 per cent saying it was very important. Only 16 per cent said it was not an important consideration.

Another finding from the survey was that even employees who worked in the office two or three times a day are still keen to have their own desk. Only 34 per cent said they were happy with hot desking- but wanted a locker.

• Hybrid ways of working now accepted by employers

The massive shift in working patters emerging from the pandemic remains with 67 per cent of employees now embracing a hybrid way of working, most commonly three to four days in the office. Most employers (58 per cent) are now accepting of this, despite 31 per cent still wishing their employees came into the office every day.

While the majority (57 per cent) of employees say they came into the office to work either two to three or four days a week, 33 per cent said they come in every day, higher than the 27 per cent last time Orega conducted the survey two years ago, but significantly down from the 73 per cent that came into the office five days a week before the pandemic.

None of the workers surveyed are working from home full time- a sign that for most industries total homeworking seems very much relegated to being a phenomenon of the pandemic.

The percentage of business leaders supporting hybrid working was the highest (67 per cent) in London, perhaps due to the extra travel costs to the capital. For those working in financial/professional services and IT, 69 per cent said they were happy with two to four days in the office. 

Nearly half (48 per cent) of business leaders said their businesses had actually improved in productivity due to hybrid working, a figure rising to 66 per cent in the North West. Overall, only 10 per cent felt productivity had declined in this period and 40 per cent said hybrid working had had no impact.

Commenting on the survey results, Alan Pepper, Chief Executive Officer of Orega said: “Our survey has revealed that the massive change our office environment experienced during the pandemic has continued to impact the requirements of businesses today.

“The office will therefore remain an important part of how businesses achieve their aims – providing flexibility for business owners but also meeting the need for quality, well located and sustainable space in which to work – to attract and retain the best workers- but also to help improve the wellbeing of staff.

“The UK market certainly has not given up on the office- but both business leaders and employees want more from it. Let’s see if today’s business leaders and their offices live up to their expectations.”

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