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Covid-19 heavily reduced demand within the flexible workspace sector but, unlike many other sectors in commercial real estate, the agility that is inherent within the sector meant interest quickly bounced back, and the German market is no exception. Markets such as Berlin went into the crisis in an incredibly strong position with high occupancy levels and continuously growing demand, making them a provider’s market and pushing up rates.
While transactions are not back to pre-Covid levels, initial signs are positive. Many companies are expected to favour a ‘Hub and Spoke’ model post Covid-19, which injects agility into the workplace by providing employees with the option to work from home, a primary office or another location using a desk booking system. With the rise of this new working model, we expect to see demand return to pre-Covid levels or above during the remainder of 2020 and into 2021.
Keywords: The Instant Group, Germany, Flexible Office Space
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