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Shared workspaces in fringe neighbourhoods could spell the demise of trophy offices

Alternative workspaces “could become the new prime” in the commercial property world, a new report from Savills has suggested.

Shared workspaces are becoming more popular around the world, and this could lead to fringe neighbourhoods becoming “the new prime” in the global office market.

This is according to real estate company Savills, whose latest publication – Impacts: the future of global real estate – reports that, in some markets, flexible workspaces are now as in-demand as trophy offices.

“New generations will drive occupier demand for certain types of buildings and locations,” explained Jeremy Bates, Savills’ head of worldwide occupier services. “This will potentially lead to a shift in what constitutes a quality ‘covenant’, with buildings let on short leases to a deep pool of small local businesses potentially finding the most favour with investors as sources of reliable income.”

Yolande Barnes, who heads Savills World Research, said it makes sense “for investors to curate whole neighbourhoods which offer all elements of life that modern workforces want, rather than relying on single use buildings to provide rental income”.