Space investors

Charlie Moss, Relationships Manager at workplace design and build specialists Interaction suggests a number of ways to monetise your unused office space

Unused office space is a costly burden on your company’s balance sheet. With hybrid working models and changing employee preferences, large-scale office spaces often remain underutilised.

For facilities managers and CFOs with thousands of square feet of unused office space, this represents not just a waste of resources but also a strategic challenge – and possibly an opportunity.

The financial impact of underutilised workspace goes beyond direct costs such as rent, maintenance, and utilities. It also ties up capital that could be reallocated to growth-focused initiatives.

Forward-thinking property managers are starting to reimagine their real estate strategies to better align with business objectives and employee needs, taking inspiration from innovative approaches like those pioneered by CBRE in New York.

A BLUEPRINT FOR MONETISATION

CBRE’s approach combines traditional office space with flexible workspace solutions in a managed lease:

Dual-purpose space – CBRE occupies four floors of Lever House for its operations, while the remaining two are managed as a coworking space by Industrious.

Expert management – Industrious handles the design, operations, and tenant experience for both the coworking floors and CBRE’s occupied space, ensuring seamless functionality.

Future-ready leasing – CBRE retains the flexibility to reclaim the space if operational needs change.

This innovative model ensures CBRE generates immediate revenue while maintaining flexibility for future growth – a model which property managers in the UK can emulate.

While not every organisation may have the scale or resources of CBRE, the principles of adaptability and maximising value can be applied across industries and company sizes.

OPPORTUNITY TO OPTIMISE

CBRE’s approach isn’t just a one-off idea – it’s a blueprint for CFOs and facilities managers in the UK looking to optimise their unused office space.

Consider how your office can meet the growing demand for flexibility. The rise of serviced offices, coworking spaces, and hybrid work models signals a significant shift in how businesses approach office usage. Facilities managers can leverage these trends to create value from unused spaces by partnering with serviced office providers.

HERE’S WHY IT MATTERS

Revenue generation: Repurposed office space can be transformed into flexible workspaces and be rented out to other companies or individuals. This not only offsets costs but also provides a consistent income stream. If done with the right partnership arrangement, any additional operational costs will be more than offset by the revenue generated.

Enhanced flexibility: Flexible workspaces appeal to a wide range of tenants, from startups and freelancers to established companies seeking short-term solutions. This makes it easier to fill spaces and adapt to changing market demands.

Stronger real estate strategy: By aligning unused space with market trends, companies can position themselves as forward-thinking and adaptive. This enhances the long-term value of their real estate portfolio.

Reduced risk: In a volatile market, flexible office arrangements can mitigate risks associated with long-term leases and fluctuating space needs.

HOW TO MONETISE YOUR OFFICE SPACE

Assess your space – Begin by analysing utilisation patterns. Are there entire floors or sections of your office consistently sitting empty? This is the first step in identifying monetisable opportunities.

Evaluate tenant demand – Research local market demand for flexible or coworking spaces. With the rise of hybrid work, tenants are seeking short-term, adaptable office solutions. The more research you can do into the needs of local tenants seeking flexible office solutions, the better your results will be in terms of uptake.

Leverage a managed lease model – Partner with a serviced workspace provider (such as Runway East or X+Why) to handle the operations, design, and tenant experience. This allows you to focus on core business priorities while ensuring professional management of the space.

Future-proof your lease – Structure agreements with flexibility in mind. Retain the option to reclaim the space or adjust lease terms based on future business needs.

Repurposing unused office space doesn’t just make financial sense; it’s also an opportunity to rethink the role of the workplace. Modern offices are increasingly seen as hubs for collaboration, innovation, and culture-building. So, create spaces that cater to these needs while integrating with serviced office providers to run them.

FROM OBLIGATION TO OPPORTUNITY

If you’re exploring this path, partnering with experienced serviced office providers can streamline the process. These providers bring valuable expertise in managing flexible workspaces, from marketing and tenant acquisition to day-to-day operations.

By collaborating with them, facilities and property managers can focus on their core business while ensuring their real estate assets are working harder for them by tapping into a growing workplace trend.

THE UK MARKET: A PRIME OPPORTUNITY FOR FLEXIBLE WORKSPACES

The demand for flexible office spaces is growing across the UK, particularly in urban hubs like London, Manchester, and Edinburgh. Businesses of all sizes are looking for scalable, tech-enabled spaces that align with their hybrid work models.

Facilities managers can capitalise on this demand by transforming vacant office space into coworking hubs or subletting to serviced workspace operators. The result? Increased cash flow, reduced overhead costs and enhanced property value.