Cl studio flexible
Yet it is early days – and a positive indicator comes from UK-listed company Great Portland Estates, which reported a 35 percent premium over the net estimated rental value on the flexible leases it has been trialling on its London portfolio since early 2018. “But tenants are increasingly recognising that they have no fallback if those spaces are full, or unavailable, and they’re saying ‘where is the space my landlord controls? How can I leverage the relationship with my landlord so there is always flexible space there for me when I need it?’”Īlthough flexible is in growth mode across Asia Pacific, according to JLL report Spotting the Opportunities: Flexible Space in Asia Pacific, there is, so far, little evidence of landlords successfully capitalising on the strategy of creating their own flexible spaces. “They have been off the hook over the past five or so years because companies that have required flexible space to meet their changing requirements have turned to third party coworking providers.
“There is a genuine acceptance from building owners that the responsibility of the communal space component of buildings is being transferred to them from the tenant,” says Stuart Colquhoun, head of leasing in Victoria for JLL Australia. But blanket demand is forcing almost every building owner to rethink design and amenities. Up until recently, co-working companies had been driving the market when it came to providing workspaces that resonate with employees in terms of design and employers in terms of managing their space needs.
Their core space will be reduced as a result of the amenity.įor many landlords, notorious for their rigid leasing practices, this is new ground. “We have actually expedited some capital projects because we recognise the changing nature of the way our customers use buildings and the demand for alternative places to work,” says Hamish Stuart, AMP’s Head of Office Leasing.Īt the company’s Quay Quarter Tower development in Sydney, up to two floors will be given over to flexible space, which will be paid for by tenants on an as-used basis. Meanwhile, global investment manager AMP Capital has recently undertaken numerous lobby refurbishments throughout its portfolio, which have all created alternative workspaces for tenants. In Melbourne, Commonwealth Superannuation Corporation replaced an entire ground-floor carpark at 101 Collins Street with luxury end-of-commute facilities including secure bike rooms, a fitness studio and changing rooms, upping the ante for landlords banking on their corporate health credentials to win tenants. In Sydney, The Porter is a club lounge in Lendlease’s 1 O’Connell Street building with a central ‘chalet’ and fireplace, among casual seating areas and meeting rooms. The efforts come at a cost, but the results can be an investment. Today’s landlords are increasingly aware that incorporating high-quality space for collaborating and socializing in their office buildings is a better way to catch the eye of companies hunting for new premises. Basement gyms and 9-5 cafés alone no longer have the same pull factor for companies looking for office space that they had 10 years ago