Flex Forward Your guide to bringing a hospitality-first approach to the office by adopting a flexible workplace strategy
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Flex
Forward
Your guide to bringing a hospitality-first
approach to the office by adopting a flexible
workplace strategy
FLEX FORWARD — 1
Contents
Learning from
Hybrid Hospitality
Pages 3-5
The Resurgence
of Flex
Pages 6-9
The Many Forms of Flex
Pages 10-12
8
Fueling the Future
of Hospitality
Pages 13-15
11
FLEX FORWARD — 2
Chapter 1
Learning
from Hybrid
Hospitality
FLEX FORWARD — 3
Business trends
come and go, but
the ones that stick
tend to be the most
practical.
Take, for instance, the concept of hybrid hospitality. In
commercial real estate (CRE), hybrid hospitality ties
back to open-minded hotel operators who recognized
that they could support a more hybrid workforce by
repurposing and upgrading parts of their facilities. As a
result, they established new opportunities and streams
of revenue for their business.
Recently, this concept has played out across the
world through large hotel chains like Hilton Hotels
& Resorts and Marriott International. Hilton follows
a global EventReady Playbook, where participating
hotels have teams and resources dedicated to curating
their hybrid events and programming. Through this
playbook, they offer clutter-free event spaces that are
easily configurable to enable social distancing, routine
cleaning schedules around meetings and events,
enhanced visitor management practices, and digital
technology solutions to support both virtual and in-
person gatherings.
Marriott adopted a slightly different strategy at the
onset of the COVID-19 pandemic. As part of its
Marriott Bonvoy travel program, the company began
offering a day pass to office workers seeking alternate
work locations. The pass allows guests to have full
access to hotel rooms complete with all the necessary
workplace requirements, such as Wi-Fi and a desk and
chair. In addition, guests can also utilize the hotel’s
shared resources for printing and faxing needs. They
can even use amenities like gyms and pools at certain
locations.
“Working remotely doesn’t necessarily have to
mean working from home, where blurred lines
between personal and professional lives can create
distractions and stress,” said Stephanie Linnartz,
Marriott International’s Group President of Consumer
Operations, Technology, and Emerging Businesses.
“We are inviting guests to work anywhere with Marriott
FLEX FORWARD — 4
Bonvoy to help them be more productive and achieve a
better work/life balance by reimagining our hotel rooms
as local remote workspaces for our customers.”
Though the two examples vary, Hilton and Marriott
both achieved the same goal: they were able to generate
additional value for their businesses by speaking
directly to the needs of a modern workforce. In
today’s CRE landscape, similar flexible policies and
infrastructure are necessary to transform the office into
innovative, consumer-first workplaces.
Hospitality experiences come in many shapes and forms
— but as tenants look to balance physical office space
with hybrid work models, flexible work environments
are becoming a critical component to meeting their
needs. With the right technology, you can give your
tenants and their employees more choice in how and
where they work. This will increase their satisfaction
with your building, allowing you to get ahead of
changes to leasing agreements, open up additional
revenue streams, and strengthen your brand as a
landlord.
As you think about the role of hospitality and how
to meaningfully engage your tenant population, it’s
important to understand why flex space is trending and
how it’s shaping the future of CRE.
Let’s take a look.
FLEX FORWARD — 5
Chapter 2
The
Resurgence
of Flex
FLEX FORWARD — 6
Flexible workspace, aptly Colliers’ 2020 Flexible Workspace Report cites several
reasons why we can expect flex space to double — maybe
coined “flex space,” is even triple — over the next five years, including a new
corporate demand for flexible workspace and the growth
no stranger to the office of the flex space vendor economy. The demand stems
from hybrid and remote work models, where CRE
sector. teams have identified a need for investments in flexible
customer service to allow tenants and their employees to
choose how, when, and where they work. The flex space
In fact, early stages of flex space date back to 2010. vendor economy has followed suit, lowering the barriers
Companies such as WeWork made the coworking of entry to provide versatile and customizable solutions
model — which consists of alternate workplaces where for every business case.
individuals and teams can rent single desks or entire
suites to share equipment, ideas, and knowledge — more Additionally, flex space offers a risk-free return to office
appealing to the public eye. in a post-pandemic world compared to longer-term
leases. With rolling contracts, flexible terms, and even
According to JLL, 30% of all CRE space is projected to the ability to pause a contract with certain providers, it
be flex space by 2030. They also report that the sector can support companies facing uncertainty in the CRE
has grown an average of 23% each year since 2010 and landscape and allot the freedom to adapt to upcoming
makes up for nearly two-thirds of the country’s office needs at a moment’s notice.
market occupancy gains.
These factors work together to form a more-than-positive
Flex space has evolved beyond the coworking model to outlook: Colliers reports that 90% of their building
incorporate all ready-to-use configurations that serve occupants believe lease flexibility will increase in the
as a community resource for businesses and individual future, with 25% of these respondents suggesting this
customers in today’s world. Though the practice of will take the form of more flexible workspace agreements.
shared spaces took a temporary hit from the pandemic Additionally, another 44.5% indicated that greater
due to concerns around health and safety requirements, flexibility will be built into traditional leases.
many companies realize that they need in-person work
environments to survive. Across the board, the consensus remains that the
workplace of the future will be more inherently flexible.
FLEX FORWARD — 7
The value of flex space
resides in its ability to
provide hospitality-
driven, tech-enabled
workplace experiences.
This is primarily due to the growing flexibility
among various work models. According to Colliers’
New Global Workplace Study, four out of five office
employees would like to work remotely one day a week
or more after the pandemic is over. Their sentiments
are being supported in reality, as a Gartner survey
reveals that nearly half (43%) of company leaders are
establishing flex time as the new norm by granting
employees flex days. An additional 42% will even
provide flex hours.
A more hybrid workforce means that the office and
its community are no longer limited to the four walls
of a building. Now, landlords and tenant companies
need to entice people back to the office through choice.
By offering a diverse range of work environments
and tech-enabled experiences, they can provide the
in-person collaborative and innovative environments
employees want and improve work-life balance.
With the new role of the physical office supporting in-
person collaboration, offering shared amenities within
a given building enables tenants to facilitate meetings
and other collaborative events in the same place they
already work. This option is quite appealing compared
to off-site locations that incur additional costs for rents
and services.
These conveniences also align with shifts in leasing
agreements between tenant companies and landlords.
Before the pandemic, companies had already started
to move away from long-term leases and towards more
flexible arrangements. Since flexible workspaces are
easily adaptable and scalable, growing companies
no longer need to worry about the commitments,
restrictions, and costs associated with traditional,
long-term leases. In addition, allowing tenant
companies to scale for their needs can strengthen
brand loyalty and increase tenant retention.
Flex space can also be viewed through the lens of
modern office amenities, by adding value to CRE
FLEX FORWARD — 8
assets that are trying to differentiate themselves
from the competition. Dan Zakai, the Co-Founder
and CEO of Mindspace, explains the importance
of consumer-centric amenities in a recent Forbes
Council article:
“The days of predicting long-term cash flow
from 10-year leases will be phased out, and
tenants, who now crave a contented workforce,
inspiration, collaboration, and wellness as part
of their occupancy cost, want more from their
rentals,” Zakai explains. “In 2021, landlords
will need to shift their mindsets in order to thrive,
adding amenities and services to their buildings
and responding to the demand for incentives with
the types of perks that tenants don’t just want but
require.”
FLEX FORWARD — 9
Chapter 3
The Many
Forms of Flex
FLEX FORWARD — 10With the demand for hospitality
and flexibility so high, where do
CRE teams begin?
Historically high vacancy rates in the United States are giving property teams a chance
to create additional revenue streams that support the needs of a modern workforce.
Though there is no one-size-fits-all solution, we’ve identified the most common types
of flex space seen in the office sector: coworking, shared amenities, private suites, and
enterprise offerings.
Coworking Shared Amenity Space
Perhaps the most well-known version of flex space, Shared amenity spaces merge the traditional
coworking is where companies and individuals can workplace with the coworking model. Companies
work alongside each other in a neutral space. They using the space can still retain their company’s identity
can work independently or collaborate, but most and branding, but they can also reap the benefits of
importantly, they can use communal resources and optionality from a more hybrid work environment.
benefit from shorter-term contracts.
This model also brings to question the needs of your
Though it still encourages flexibility, the downside of specific business. For example, some office owners
a true coworking model is that members are tied more may limit flexible amenity centers to the tenants of
directly to the company facilitating the coworking their building. For those thinking more long-term,
space than the building’s landlord. they may want to open up their amenities to the public
to increase building engagement and attract future
tenants.
FLEX FORWARD — 11Private Suites Enterprise Offerings
Another popular flex option is private suites. These This kind of flex space is similar to private suites but
are dedicated, managed spaces of varying sizes on a much larger scale. This category is broad, and
that occupants can lease for short periods of time. can include the following: shared rooms or floors
Leveraging a flexible lease can help tenants who need within a larger building community, individual
temporary work environments as they determine satellite offices, and even larger hub-and-spoke
their next move — all while still benefiting from an models. These options enable companies to work
office building’s conveniences such as internet access, flexibly, both in the office and at work-near-home
catering, resources, and more. locations.
By giving new life to previously underutilized space,
landlords can increase tenant engagement with their
building through empowering workers to use open
space, seating, and amenities throughout their assets.
FLEX FORWARD — 12Chapter 4
Fueling the
Future of
Hospitality
FLEX FORWARD — 13Technology is the Enabling Flexible Working
With TeX, you can give your tenants more choice in the
greatest enabler to any workplace by enabling them to reserve a space or amenity
modern trend. As flex within your building that meets their needs, right from
their smartphone or computer.
space needs continue
to grow, so do the Increasing Space Utilization
technological capabilities More flex space means fewer fixed workstations, which
will ultimately help you make better use of your entire
that support them. office portfolio. By offering more shared spaces, you can
drive space efficiency savings and improve the overall
workplace experience through built-in flexibility.
No matter which configuration of flex space suits
your hospitality goals, leveraging tenant experience
technology (TeX) can help establish successful, Improving Tenant Satisfaction
flexible experiences that generate value and elevate the
Increase satisfaction by giving tenants more freedom
landlord brand — both in the immediate present and
and choice in their workplace. Enabling access to a wider
well into the future.
variety of spaces will allow the office to be just as flexible
as the modern workforce, thereby improving productivity
Not only will the implementation of TeX reduce costs
and collaboration.
by leveraging or enhancing your building’s existing
technology stack, but it will help you host a modern
workplace environment that is easily accessible
Digitizing the Workplace Experience
through each occupant’s mobile device. Below are just
a few of the ways technology is already supporting flex Enable everyone to quickly and efficiently get the most
space needs: out of your building. Whether it’s through room or
resource booking, mobile access, tenant communications,
or other tech-enabled capabilities, TeX can empower and
delight your occupants with a truly seamless experience.
FLEX FORWARD — 14Offering Additional Perks
A huge part of hospitality trends for the office is
convenience. For certain flex offerings, you can
facilitate services and commerce with on-site retail
(such as catering, dry cleaning, or other provisions
that tenants can’t find at home) through a TeX app.
Making Data-Driven Decisions
TeX can also help you use data to inform your
decisions through robust analytics dashboards. By
anonymizing and aggregating data on the usage of
your spaces and facilities, you can easily pinpoint
high-level trends and tailor your offerings to what
tenants want and use.
Preparing for the future.
In the same way the hospitality industry has already
diversified its offerings to guests by encouraging more
flexible work experiences, CRE is now embracing flex
space for the office. No longer are employees bound
to a single location to do their jobs, reinforcing the
need for more flexible, consumer-first experiences that
increase customer satisfaction and promote landlord
brand loyalty.
With the right technology partners, you can enhance
your workplace by creating frictionless experiences
and providing tenant companies and employees
with choices for where and how they work. More
diverse workplace arrangements will improve tenant
satisfaction, optimize your space utilization, and
generate additional revenue throughout your portfolio.
FLEX FORWARD — 15About HqO
The world’s leading commercial real estate firms count
on HqO to help them deliver a state-of-the-art tenant
experience within their properties. Active in over 150
million square feet in 7 countries, HqO is known for
its tenant experience platform comprised of an award-
winning tenant app, analytics suite, and partner
marketplace. Our solutions put experiences and a
sense of community directly into the tenants’ hands
while helping property owners uncover insights and
take intelligent action to differentiate their assets. For
more information, visit www.hqo.com, and connect
with us on LinkedIn, Twitter, and Instagram.
FLEX FORWARD — 1638 Chauncy Street, Boston MA | www.hqo.com
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