CBRE enter flexible office sector- Why are businesses choosing flexible offices over traditional offices?

CBRE have announced the launch of Hana, what they describe as ‘a new service offering designed to help institutional property owners meet the rapidly growing demand for flexible office space solutions’.

Hana is made up of three offerings: Hana Team, Hana Meet and Hana Share. Hana Team, the core offering, provides private office suites to meet the needs of large corporate users by combining the benefits of flexible space with the amenities, technology, thoughtful space design and control over branding and culture that sophisticated corporations require. Hana Meet provides conference room and event space that can be rented on an hourly, daily or weekly basis. Hana Share provides traditional co-working space in which users share services, amenities and technology in a communal setting.

CBRE’s President and Chief Executive Officer, Bob Sulentic stated that “the way space is being used is evolving rapidly. Companies want the flexibility to adjust their occupancy to meet changing business needs and a better workplace experience to attract and retain top talent”.

Why are businesses choosing flexible space over traditional offices?

Flexible office space has grown by 22% over the last seven years, compared to 1% growth in traditional office space. By 2030, 30% of commercial office property will be flexible.

Flexible offices have many advantages including:

  • Cost saving
  • Requires little investment/capital
  • Modern design
  • Access to cutting-edge technology
  • Only pay for what you use
  • Administrative services included
  • No facility management responsibility
  • Helps attract and retain employees
  • Networking opportunities
  • Provides access to talent
  • Drives collaboration
  • Flexibility in lease and amount of space you take up
  • Hospitality-focused service and amenities
  • Prestigious business address

However, flexible offices do come with some drawbacks, including:

  • Can be distracting
  • Limits on customisation and company branding
  • Information security