Landlords have realised that in today’s turbulent business environment a co-operative approach to leasing gives them an edge over the competition. Companies are reaping the benefits.
Given the rapid pace of change within today’s business environment, what dynamic businesses crave most is flexibility. Nowhere is that flexibility more acutely needed than in the ability to trim and add staff, a requirement that is having a direct impact on office lease negotiations.
As a well as wanting to shrink and expand floor space in response to market demands, companies also want greater give and take when to comes to tenure. With traditional lease terms – previously up to 10 years – no longer aligned with uncertain trading environments, many companies now recognise the benefits of contracting for office space within shorter lease horizons.
Also having a material impact on corporate attitudes to office space are the changing workplace demographics, and the number of people working outside the bricks and mortar office environment.
First, the increased prominence of millennials in the workforce has implications for office leases, given their liking for blending work with personal time, and their comfort with mobile work.
According to a recent Colliers APAC Flexible Workspace Report the growing likelihood of millennials being “contingent” workers (short-term hires) is driving the need for fully furnished workspaces being leased on a project basis. That’s especially true in flexible workspace hotspots like Sydney and Melbourne.