Some findings from the Investment Property Forum report on “Investment Implications of the Flexible Space Market”:

* Flexible leasing is expected to deliver higher net income at the cost of greater volatility.

* Shorter leases are expected to lead to more volatile income patterns but the additional revenue from leasing flexibly, due to higher densities and charging for added services, is expected to deliver higher net income through the cycle.

* Operators able to lease fully fitted-out serviced office space on longer lease terms will be able to reduce the risk of an income shortfall in a downswing.

* Economies of scale will favour larger operators and larger buildings.

* Larger operators, through their greater expertise, a network of offices and economies of scale, should achieve the highest income premium, with larger buildings offering both maximum cost efficiencies and agglomeration benefits, as well as opportunities for further synergies with traditional leasing.

Click here to view the report.