A Look Ahead
Space as a Service
As work becomes more flexible, so will the workplace.
By Antony Slumbers
IN ITS 2016 “Workspace, Reworked”
report, JLL stated that “up to 30 percent of corporate real estate portfolios
will include flexible space by 2030.”
Although even this is something much
of the industry does not want to hear,
their prognosis is not nearly aggressive
enough. The numbers are likely to
be closer to 30 percent by 2022 and
more than 40 percent by 2030.
Why? Because the commercial real
estate industry is undergoing a
structural change that will reshape
every facet of the market that has
existed for the past 50 years or more.
This change is not just a function
of the natural, cyclical real estate
cycle. Rather, it is a set of structural
changes to the fabric of the market.
These changes are the byproducts of
a world where technology is leading
to fundamental changes in how busi-
nesses operate, the work people do
and, especially, how and where they
Five technological megatrends are the
“great enablers” of all the changes
now taking place. And each of these
trends is on an exponential growth
trajectory. Indeed, they are all hitting
the uptick of the exponential curve.
1) The ubiquity of the supercomput-ers (aka smartphones) now in
2) Pervasive high-speed connectivity.
3) Cheap and abundant cloud computing.
4) Billions of internet of things (Io T)
sensors connecting anything that
can usefully be connected to the
5) The rise of artificial intelligence
(AI) and robotics.
In combination, all of these trends
are reshaping demand for space. The
very nature of the work people do
is being reshaped to the point that
many people no longer need an office
in which to work, or even a store in
which to shop. People may desire
them, but they do not need them.