The turnaround of serviced office: From victim to the victor of post-pandemic CRE market

Dec
2021

Steen Uno

In the spring of 2020, thousands of depopulated coworking and serviced office spaces feared that they would have to turn the key - after the pandemic, they can now present a record-high approach and refilled premises, the annual MatchOffice Client Survey shows.

Dec
2021

Steen Uno

After a year and a half with covid-19 restrictions, the serviced office is emerging as the great post-pandemic winner and most popular first choice among small and small businesses, younger startups, freelancers and more.

An increasing number of SMEs choose flexible, ready-to-move-in office spaces with short-term contracts, which allow them to pause or quit easily. Also, they achieve a pro provider to handle the company's facility management.

According to the new MatchOffice Client Survey 2021, the number of respondents confirming that they have used their serviced office since the start of the pandemic has more than doubled - from 16% last year to 34% in 2021.

A large majority of the surveyed office managers still work from home. But as more office workers continue to be vaccinated, more will expectedly return to their physical office spaces.

Flex lease terms

"Since the pandemic outbreak, coworking and serviced office providers have gained valuable experience and learned how to optimize their office spaces and environments to match their tenants' demands for security, flexibility and cost-effectiveness.

The flexible serviced office is obviously on its way to becoming the CRE market's significant winner of the new hybrid new ways of organizing office work," MatchOffice CEO, Jakob Dalhoff outlines.

After a year and a half of covid-19 restrictions, the serviced office is emerging as the
great post-pandemic winner and most popular first choice for smaller businesses.
Photos: BLOXHUB

The MatchOffice Client Survey 2021 is based on the recent responses from over 1,000 office managers in 23 European countries and presented for the seventh year in a row.

The annual report confirms how serviced offices again after the industry's corona crisis attract their former and new tenants also due to their ultra-short contracts and other flexible lease terms, in particular.

Out of the crisis

In their latest newsletter, the world's largest CRE agent CBRE reports that, now, the serviced offices have gone through the covid market crisis and will play a key role as firms adapt their office portfolios to the new flexible ways of working.

According to a US survey, 37% of 1,250 responding companies with +500 employees have closed their office spaces forever since March 2020, 32% a part of them, while 41% downsized their existing office leases.

During the 21-month-long period of covid-19, eight out of 10 serviced office users
have been working alone or accompanied by just one colleague.
Graphic: MatchOffice Client Survey 2021

Other global surveys indicate that office workers, after many months of homeworking, are demanding significantly more flexibility in their physical work conditions than before the pandemic.

Several office workers globally are still performing from home full time, but more and more are returning to their offices to enter into new hybrid work models with flexible room options and facilities.

Market-leading

Further, the MatchOffice Client Survey 2021 shows that eight out of 10 serviced office users have been working alone or accompanied by just one colleague during the pandemic. 16% have worked with three to four work colleagues.

55% of the interviewed office managers express current plans to extend their current lease compared to only 21% in last year´s survey.

Approx. 70% of the respondents point out that the ability to downsize or expand their workspace quickly and smoothly is the prominent advantage of the serviced office.

"Serviced offices have always been market-leading when it comes to designing and
tailoring their workspaces following the many varied desires and needs of the users,"
MatchOffice CEO Jakob Dalhoff praises.

"For over a year and a half, most office workers had the opportunity to do their job in private home comfort. Therefore, it has become more crucial than ever that the serviced offices are able to match those levels of comfort.

But always, serviced offices have been market-leading when it comes to designing and tailoring workspaces and environments following the desires and needs of their users. That is why their market seems so bright right now in the aftermath of the pandemic," Jakob Dalhoff emphasizes. ●

MatchOffice Client Survey 2021:

Back to all news