Flexible Space Market Trends
Growth Drivers
- Increasing Numbers of Firms and Establishments; -Large corporations and firms are increasingly incorporating flexible space solutions into the firm’s establishments. By utilizing flexible spaces, these firms and corporations can provide project spaces or can create innovation hubs allowing alignment of workspaces with requirements. In addition, there are small firms that don’t want to invest a considerable amount in private office space, thus resulting in the increasing demand for flexible space. As per the data, there are more than 33 million small-scale businesses in the United States in 2022.
- Surge in the Number of Collaboration and Community; - Flexible spaces for fostering collaborations and community building through a shared work environment. These often facilitate networking opportunities, community events, and industry-specific programs that bring professionals from various backgrounds together.
- Increasing Requirement for Cost Efficiency and Financial Flexibility; - Traditional offices lease often come with high upfront costs and long-term commitments. In contrast, flexible spaces provide a cost-efficient alternative with flexible lease terms.
- Rising Trend of Freelancing – There are a large number of professionals that are not employed in one organization, and provide their services to more than one organization. Therefore, they require flexible space in order to provide service to a particular organization. According to a recent analysis, more than 1.5 Billion of the world’s workforce are working as freelancers.
Challenges
- Highly Competitive Industry-Flexible space market has become highly competitive with the entry of numerous providers. This saturation can make it challenging for individual providers to differentiate themselves and attract tenants. Standing out among the competition requires offerings unique value propositions, such as specialized industry-focused spaces, innovative amenities, or tailored services. Addressing these sorts of challenges requires strategic planning, continuous innovation, and a deep understanding of market dynamics. Providers that can effectively navigate these obstacles have the opportunity to thrive in a market and meet the evolving demands of businesses and professionals.
Growing Preference for Remote Working
Operational Challenges Associated with Space -As-A-Service Model.
Flexible Space Market: Key Insights
Regionally, the global flexible space market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in the North America region is estimated to witness the highest market share of 34.10% and attain a market revenue of USD 14005 Million by the end of 2028 primarily on the back of growing demand for commercial spaces from businesses in secondary and tertiary cities in the region. Owing to the growing commercial property prices in major metropolitan cities across the region, along with the rising need to lower the commutation time of the employees, businesses are opting for the expansion of their businesses to the secondary and tertiary cities. The commercial property price index value in the U.S. grew from around 130 in the first quarter of 2014 to around 185 in the fourth quarter of 2019. On the other hand, according to the American Community Survey of the United States Census Bureau, reported that in the year 2019, the average one-way commute in the U.S. increased to a new high of 27.6 minutes. The data also reported the average travel time to work for workers over 16 years and those who did not work from home in some of the major metropolitan areas, such as New York-Newark-Jersey City, Los Angeles-Long Beach-Anaheim, Chicago-Naperville-Elgin, Dallas-Fort Worth-Arlington, and Houston-The Woodlands-Sugar Land, among others to be 37.7minutes, 31.7 minutes, 32.4 minutes, 28.6 minutes, and 30.7 minutes respectively.
The study further incorporates Y-O-Y Growth, market opportunities, demand & supply and forecast future opportunity in North America (United States, Canada, Mexico), South America, Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
17.7% |
|
Base Year Market Size (2024) |
USD 6.98 billion |
|
Forecast Year Market Size (2037) |
USD 58.07 billion |
|
Regional Scope |
|
