Savills News

No ‘one size fits all’; millennials distupt the traditional office market

By 2024, millennials, those born between 1981 and 1996, will constitute 75% of the active workforce; a generation that is used to flexibility and freedom of choice. As a result, the market for flexible office space is growing rapidly (+242% over the last five years) and will account for an even bigger share of the Dutch office market according to international real estate advisor Savills. In addition, flexible office providers have started to offer different concepts, similar to the hotel sector, ranging from basic / budget to high-end / five stars. This is illustrated in the latest research report "Spotlight Flexible office space: A flight to flexibility", published today by Savills.

Ed Bouterse, Head of Workthere in the Netherlands, says: “The flexible office market is becoming increasingly professional. In addition, we see operators bringing different labels to the market; also known as ‘multi branding’. These operators each offer their own type of flexible product, ranging from private offices to the provision of desks within co-working spaces. Multi branding is making the flex product an attractive alternative for an even larger group. A good example of the multi branding concept is IWG (the parent company of Regus). With Regus, Spaces, HQ, Signature and No18, they currently manage five different office concepts.”

Work ‘anytime anywhere’

Over the past five years, the number of people working remotely increased by 14.1% and over the last ten years the number of self-employed has grown by 125.3%. This change is largely driven by millennials, a generation which spends its time very differently from predecessor generations and for whom sitting at the same desk every day is by no means taken for granted. The ability to personally decide how to work at the office (a silent workplace or a conference room) or outside the office (in another city or while away from home) is very attractive to most younger people.

Also the type of office space can make all the difference. Companies understand that more and more services are becoming part of the office package, such as a pool table, fitness facilities and roof top bar. This is causing a shift in the user market – from offering as many square metres as possible, to offering workplaces with a unique branding. The option of working at different locations has some similarities with a fitness gym company: one subscription for multiple gyms.

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