Faced with the prospect of a recession, companies seek to diversify their activities to protect income. By being able to meet deadlines and maintain profitability, companies will not only be protected from financial crises, but may even expand.
At first glance, the flexible workplace sector seems to offer potential for this type of initiative. Relatively small initial investment and a quick start-up make it seem easy to open at least a few flexible workplaces ready to serve the growing demand for hybrid workers.
The potential exists for those small initiatives to grow rapidly, leading to the creation of an entirely new brand or product line. However, the flexible workplace sector presents a series of challenges that can prevent business objectives from being met, some of which we discuss below.
Consult here: Revenues of seven Fibras increased 7.4% in the first quarter of 2023
Hybrid and flexible workplaces are attractive because they offer users the possibility to choose both location, spaces, and hours. But for this, it is necessary to have a variety of spaces of different sizes, to satisfy the variable demand.
The new hybrid work models need exclusive spaces that are committed to creating the right environment and using the required technology. Even within a single company, the most efficient hybrid work model offers workers multiple locations from which they can work.
This means finding a variety of locations for those offices, locations that are attractive and easily accessible, for example, located somewhere that reduces worker stress and environmental impact when commuting. Again, a single location, and particularly one that is already in use as a traditional office, will not offer this option.
If the previous challenge is overcome, what emerges is a company that requires a high and constant level of administration. The workplace will only succeed if it delivers a high-quality end-to-end user experience, ensuring everything runs smoothly, from administration and contracts to maintenance and facilities.
But providers in the workplace sector compete not only on price, but also on facilities. Front desk service, refreshments, socializing, and breakout spaces are in high demand and are expected to continue across all locations. For this reason the cost and labor required to maintain the location to this standard can escalate significantly and in a short time.
Of interest: Which markets concentrate the demand for offices in 1Q 2023?
Once all of the above is taken care of, one last challenge remains: getting people in the door. Despite increased demand for hybrid solutions, employees still have the right to vote and could also choose to stay home.
Therefore it is unlikely that a branding and marketing strategy will be sustainable or even profitable if it is to cover a few offices or a single location. In fact, a brand-based approach might not be appropriate if you don't have significant locations or products.
In Solili you can consult available offices in Guadalajara, Monterrey y Tijuana
Stay up to date with the most important news to the real estate
Subscribe Solili Newsletter