In a world that’s evolving by the day, commercial real estate (CRE) has seen some drastic changes. Over time, there has also been a growing demand for convenience. This means that the ideal office should portray the perfect balance of space, design, and furniture. The high demand for fast and flexible solutions have broken long-established norms that governed office furniture needs for years.
This new approach has slowly become the foundation for modern workplace solutions; popular terms that build higher expectations for the average office-goer. So, what are these new-gen terms that everyone is chatting about?
- Space as a Service (SaaS)
- Furniture as a Service (FaaS)
- Flex Space
The concept ‘Space as a Service’ made its grand debut as a solution to the temporary needs of startups and other high-growth companies. SaaS has successfully managed to shake the steady world of commercial real estate (CRE). Office tenants are advocating for flexible spaces more than traditional office leases. Real estate investors have to now focus on meeting these increased demands.
So, how do you help your client make the most of the changing CRE landscape?
The idea is to understand the core needs of your clients. What do they want? How can you help them see their ideas translate into real-life scenarios? Today, we are going to delve deeper into understanding the significance of FaaS in the changing CRE terrain.
Where It All Began…
In the midst of a changing office market, realtors understood the need to be responsive when it came to attracting potential tenants. With the rise of a startup culture, we witnessed companies choosing a quicker, more affordable solution for their temporary requirements.
This is where the concepts of Space as a Service (SaaS) and Furniture as a Service (FaaS) came to the rescue. These solutions are very much like other subscription services currently in the market. SaaS provides space while FaaS provides furniture on demand for companies growing at a rapid rate.
The idea of having a space centered on flexibility and access led more companies in the direction of FaaS. It was not only about saving on cost but also about spending less time on a project. At the end of the lease term, one no longer needed to worry about selling or keeping the furniture. And, this made a huge difference in the commercial real estate landscape.
FaaS involves easy accessibility to ownership of furniture, through a simple subscription process. This allows the owners, and the people who work or manage the space, to use furniture as a flexible medium rather than as a stagnant asset.
Benefits Of FaaS In The CRE Landscape
With changing trends came a change in requirements. The new and improved office layouts were highly appealing to a variety of workplace users.
Whether it’s a staged space or a fully-furnished space, the furniture should align with a client’s goals. Another important factor is the scalability of the furniture, whether your teams increase or decrease in number.
Here are the 3 major benefits that laid the foundation for the success of today’s FaaS market.
- Accessibility over ownership: For companies and startups that are growing at an exponential rate, renting furniture based on demands is not only a safer option but also a smarter one. The FaaS approach is risk-free and easier to manage according to your needs. It’s there when you need it and gone when you don’t.
- Flexibility: Once you’ve decided to rent office furniture, all you need to do is browse through a big furniture inventory. With BureauOne, find an extensive catalog of premium furniture available on-demand to help design your workplace. The best part about the FaaS approach is that you can change the pieces as needed and return the products according to the terms of the subscription.
- Feasibility: Rather than make a huge investment in furniture that you aren’t sure of, choose from a huge selection of office furniture for rent. Not only does this cut down the upfront payment, but it also divides the amount into affordable monthly installments. And, with BureauOne’s furniture rental plans, you can shift easily from rent-to-ownership for products that are close to your heart.
Where It Is Headed…
Sublease places, in general, are changing due to the higher interest in short-term flexible office spaces. Recent research done by JLL Trends found that there will be significant shifts in how office spaces will be in use in the future. Currently, flex space accounts for less than 5 percent of the U.S. office stock market. This can skyrocket to nearly 30 percent of the market, by 2030.
So, who can benefit from this changing office culture, brought by the FaaS approach?
- Companies that lease space for 2-3 years – it might seem sensible to rent than to buy.
- Project-based organizations and companies that deal with time shifts – a flexible workplace can be best served by changeable furniture.
- For startups, the main agenda is to conserve their capital and invest in growth process. Cut the upfront cost of office furniture through renting.
- Building Owners – attract more clients by outfitting the space with furniture that can be modified depending on your client’s needs.
Using FaaS In A Workplace…
The idea behind FaaS is to convert office furniture from a liability to a flexible tool. With a subscription procedure, FaaS is gaining popularity for all the right reasons. So here are two examples that could benefit from a FaaS approach.
- Recreational Areas: The days of the extravagant and picturesque lobbies are long past. It’s shifting towards more of a communal area than a quiet corner to work out of. It has become more trendy and collaborative. With Faas, one can change the outlook of the recreational area. Fill the area with furniture that changes with the seasons. Switch out the rental furniture as desired to create a sense of newness and life. Keep your employees and your clients hooked for the long run.
- Flex Spaces: More and more companies are trying for access to flexible but dependable office space on an affordable lease term. The very nature of a flexible space calls for ‘flexible assets’ and that’s where FaaS comes in. Now, companies are able to set up an office and then add to it as needed. And since FaaS is fast, a huge area can also be up and running within about 10 days or less (and even gone as fast).
Therefore, let’s conclude by agreeing that FaaS is here to stay and rule. In other words, the demand for a fast, flexible and well-designed space is skyrocketing as businesses need to focus more on what they do (trust us, the world out there is very competitive).
With BureauOne office furniture rental, find yourself with an opportunity to align your workplace to match your goals. With our experts, design a space that resonates with the changing characteristic of the modern workplace.