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How You Work: People, Places & Flexible Workspaces
03 Location
The GFC triggered a decline in construction globally by
5% in developed markets. The effects are still being
felt today despite renewed development activity and
market buoyancy. A subsequent shortage of Grade
A office supply in all global financial centres has sent
office rents in Central Business Districts (CBDs) soaring
by an average of 10.1% in the last two years. A 7%
rise in the number of commuters from the suburbs
into CBDs over the past decade has added a further
pressure on global city infrastructure. Though business
is enjoying a global resurgence, conventional offices
in high-demand locations have become prohibitively
expensive for most small companies.
Flexible Offices, however, have the potential to relieve
much of the strain. Remote working for employees
alleviates the requirement to commute to the CBD from
suburban areas. This could benefit both employees and
employers due to increased efficiency from reduced
travel time and lower rents in fringe locations.
9.6
k
7.2
k
2.7
k
2.5
k
6.7
k
6.7
k
16.5
k
6.2
k
London
The Cost Differential
New York
Shanghai
Berlin
9.9
k
3
k
8.8
k
19
k
30.5
k
3.1
k
8.9
k
1
1.2
k
Conventional Office Costs
Flexible Office Costs
Figures in US$ per annum per workstation (08/06/2015).
Costs are calculated by the
Cushman & Wakefield Global Occupier Metrics toolCBD
CBD
CBD
CBD
Fringe
Fringe
Fringe
Fringe