Adaptive Spaces
Flexible Office Trends in Tech 2023
More than a third of tech companies planning to double their use of flex space
February 14, 2023 8 Minute Read
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Introduction
CBRE Agile Practice surveyed CBRE brokers and account leaders on their Tech clients’ adoption of flexible office space.
We received 53 responses:
- These companies have significant global footprints, collectively employing more than 2.3 million people worldwide.
- Thirty-five companies are U.S. dominant (the majority of their presence in the region), 11 are EMEA dominant and 7 are Asia-Pacific dominant.
- Eighty-three percent of the companies have at least 20% of their footprint in the Americas, 45% have at least 20% in Asia-Pacific and 20% have at least 20% in EMEA.
Source: CBRE Agile Practice, 2022.
Key Takeaways
Key findings:
- Tech is ahead of other sectors in its adoption of flex space solutions
- Respondents are still increasing their use of flex space, but the pace of adoption is more gradual.
- More than any other sector, tech is using the entire spectrum of flex products to its fullest extent
- Cost is becoming an increased concern among respondents.
Source: CBRE Agile Practice, 2022.
Top Topics
Cost has replaced recruiting and retention and as the top issue for tech companies.
Other topics top of mind to Tech Sector companies right now are Return to Office, Employee Experience and Recruiting and retention.
Figure 1
Source: CBRE Agile Practice, 2022.
Flexible Office Adoption Trends
The tech sector continues to lead in flex adoption
Figure 2
Source: CBRE Agile Practice, 2022.
Expectations for Increased Use of Flexible Office Space
Thirty-six percent of survey respondents expect to more than double their use of flexible office space by 2024, with the biggest adopters planning a fivefold increase.
Figure 3
Source: CBRE Agile Practice, 2022.
Popular Flexible Office Solutions
Suites with shared amenities are the most popular flexible office solution with almost three-fourths of respondents using it.
Most respondents utilized a combination of products to meet their needs, the most common being:
- Suites + Enterprise Space
- Suites + Access Passes
- On Demand + Access Passes
Unlike financial services, which tend to gravitate mainly toward enterprise solutions, tech firms use all types of flex offerings.
Figure 4
Purposes of Using Flexible Office Solutions
Flexible office space primarily is used to add agility into the portfolio and minimize capex spend.
Tech companies largely find the most value in using flexible office space to accommodate remote workers, test new markets, and accommodate rapid growth.
Figure 5
Source: CBRE Agile Practice, 2022.
Challenges of Flexible Office Space Adoption
Cultural fit is the biggest challenge for Tech Sector companies when using flexible office.
IT security and balancing cost of traditional space versus flexible office were cited by a majority of the respondents as obstacles to a broader adoption of flexible office space.
Figure 6
Source: CBRE Agile Practice, 2022.
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