Quality over Quantity? – The Influx of ‘Luxurious’ Amenities in Flexible Office Space

We have seen the hotelification trend evolve within the office market over the last few years, however, it has recently reached new levels in the flex sector with operators placing increasing value on including high-end amenities in their schemes. As a result, we have seen a significant increase in the amount of floorspace being dedicated to this, driven by a rise in demand generally for more luxurious and comprehensive amenities in the office market over the past 12 months, coupled with the growing competition to secure tenants. Where conventional offices have upped the ante, the flex market has to up it even further, and occupiers are willing to pay for it. So, are private chefs and rooftop bars here to stay and what does this mean for operators?

Historically, an office was a cubicle with a phone and a monitor, but it’s safe to say those days are far behind us. In today’s world of work there is a continued drive to retain and attract talent and bike storage, showers and meeting rooms are not enough anymore. Employers want to create a healthy work-life balance and one way to achieve this is by making the office more than just the place they work and, in some ways, better than working from home. Therefore, serviced office providers are now focussing on amenities that ooze opulence when considering the quality and design of the space they provide. This is seen at Fora’s Chancery House, where 30,000 sq ft of the 127,000 sq ft scheme has been dedicated to amenities such as large roof terraces, a gym and sauna, a library and a recharge room, all with the aim to create a balance ‘where work meets wellness for one to create and connect, as well as recharge and relax’.

As outdoor space becomes a priority for occupiers, there are a number of operators taking this to new heights. For example, in Colmore Row, Birmingham and Marble Arch, London, X + Why offer a private club space and dining as well as a cocktail bar with the scenery of Hyde Park and Marble Arch. At Knotel’s Old Sessions House in London, the rooftop terrace at this location presents a 250 sq ft corner infinity pool, which is the only one of its kind on the roof of a grade II listed property. These spaces do the job of bridging the gap between work and play, which makes the office more than just a place of work.

Following COVID-19, the rise of hybrid working, and some businesses downsizing, there has been a shift in how amenities are viewed and used by both operators and occupiers, with certain facilities taking precedence. According to our Flexmark report, the top demands from customers when acquiring flexible office space are phone booths, meeting rooms, collaboration spaces and standing desks. Flexible office space now includes these facilities, but of course, it comes with a price tag. So, although operators are allocating more amenity space in their buildings, which means less desk space, they are able to diversify their income and maintain a premium by simply offering what occupiers want.

These providers are allowing businesses all of sizes to access world-class buildings and amenity spaces, whereas, before the smaller businesses would have been taking a lease within a building with limited or no amenities. Access to this amenity, combined with the flexibility of the agreements makes the increased price stack up for a lot of occupiers.  

As the demand for amenities increases, we expect that these best-in-class spaces will become the norm across the flex market, and as occupiers continue to look for a means to attract and retain talent the increased demand will also be sustained.