Flexible Workspaces in Spain

Description

ProWorkSpaces and Cushman & Wakefield Spain present their report & analysis of the Flexible office market Spain in 2019.

The report analyses recent take-ups and developments in metros like Madrid and Barcelona, but also looks at the potential of tier 2 and tier 3 cities in Spain.

Lots of new flexible workspace operators arrive in Barcelona, such as Talent Garden, WOJO, Merlin Properties and First workplaces. The main push comes from “pure” operators, but the first Owner/Operator hybrids also appear.

Flexible office market Spain – Growth and potential for flexible workspaces in Spain

We are facing a period of profound social
change. The economic climate, different ways
of working and their interaction with our lives,
preferences and values, and even our
behaviour as customers have changed
radically from what was true only a few years
ago.

Regardless of their size and status,
organisations are adapting to these new
circumstances and to new fundamental
challenges. They are seeking out elements
such as the ability to attract and retain talent,
as well as the creation of business
opportunities based on digital technologies
and sustainability.

Within this new context, a new industry has
emerged aimed at revolutionising the
workspace market.

The growth in the supply of flexible office
spaces has been exponential in recent years,
as evidenced by this second study undertaken
by Cushman & Wakefield in conjunction

with ProWorkSpaces, the association which
brings together the flexible office market Spain

The success of this formula rests upon a
number of factors, particularly notable among
which are flexibility — delivering large-scale
offerings to small—scale demand, the
advantages of the outsourcing of
infrastructure management and formulas to
connect flexible solutions with major
companies. As in many other fields driven by
the sharing economy, use takes precedence
over possession. One determining factor
stands out — flexible offices are centred around
people.

Even with such rapid growth, flexible offices
continue to represent only a small percentage
of office stock. We can consequently predict
that the industry will continue to grow
vigorously in coming years. In other words, we
are still far from witnessing a mature market.

Within this rapid development, diversification
and specialisation will very probably represent
the beginning of a new stage. We invite you to
experience this together with us, beginning
with the study of the ideas and discoveries in
this report.

Flexible office market Spain – OWNERS WHO ARE ALSO OPERATORS AND
OPERATORS THAT BECOME OWNERS

The rapid change in space usage methods may This duality differentiates them from pure
clearly be observed in market parameters such operators who do not own the property and
as the take—up of office space. The exponential simply attend to the provision of the flexible
growth of the share of flexible workspaces offering.
within take-up points towards a drastic change
in the structure of office usage over the Flexible space operators are expanding their
medium term. We may even venture to say floorspace and occupying ever more buildings
that landlords, operators and users will see the on an exclusive basis. Nevertheless, in Spain
first decades of the let—century as a remote there is still no evidence that these types of
and strange marketplace. operators will become owners.

Up to now, flexible workspace operators are
Rapid change also leads to added maintaining their purely service—based vision
uncertainties, particularly with regard to of real estate.

whether the shock is transitory or permanent.
Within this context and in order to keep their
options open, landlords are expanding their
space, from traditional lease contracts to
flexible workspace formulas.

The appearance of hybrid operators in Spain
has been out of step with respect to pure
operators. Nevertheless, these may reach
market shares similar to those of pure
operators within the short term.

The hybrid operator enjoys a number of Clear
advantages, such as controlling the entire
gamut of direct occupiers/parties with a
traditional lease contract, as well as final users
of flexible workspaces.

Within this context, actions regarding the
property are supervised by the same agent,
whilst management, maintenance and value
are optimised. The hybrid operator has to
operate and understand two markets that are
related, though not identical: that of space for
lease and that of workspaces. As a result, there
could be a trade-off between control and
complexity.

Another advantage enjoyed by hybrid
operators in the current growth climate is that
they may be able to choose their area of
specialisation according to the consolidation
of the flexible workspace market.

They likewise gain lessons on how to get the
maximum yield out of the end users (workers)
of traditional space by means of direct contact
with the customers or associates of the flexible
space.

Other owners are adding value to their
portfolio by providing to occupants under
traditional contracts access to flexible spaces
located in other buildings or even cities.

The graph shows how owners in Spain are
becoming increasingly more active in terms of
flexible offerings, a trend shared with the rest
of Europe and also the United States.

Over the first nine months of 2019 flexible
workspace operators have leased 56,200 sq m
of office floorspace, representing 11.2% of the
total take-up of office space in Madrid. With
one quarter left till the close of year, these
56,200 sq m exceed by some 21% the 44,540
sq m transacted during the whole of 2018.

The preferred locations for this type of
operators are those with good transport
connectivity and the amenities in the
surrounding area.

As a result, over the past 10 years some 73% of
flexible workspaces have been leased within
Madrid’s Central Business District (CBD).

During the same period of time and within the
M-3O ring road (which demarcates central and
decentralised markets) contracts covering a
total floor area of 137,100 sq m have been
signed, the AZCA sub-market seeing the
largest share of this with 18.5%. This is
followed, at some distance, by the area of
Chamartin, with 12%.

Take-up of flexible workspace as a proportion of the total
transacted

Flexible office market Spain – DEALS | TAKE—UP ANALYSIS

Barcelona

The figure for take-up of flexible workspace
began 2019 strongly in Barcelona. The entry of
new operators seeking to position themselves in
the city, together with the attractiveness of
Barcelona for these types of operators, has led
the take—up during the first nine months of 2019
to exceed the total sum for the past three years.

The floor area assigned to shared workspaces in
the Barcelona market went from a 5% share of
total floorspace transacted in 2017 to 12% in
2018, climbing to 16% for the aggregate of the
first three quarters of 2019.

Flexible workspace operators are expanding the
floor area that they manage and even leasing
entire buildings.

Intensity of flexible workspaces take-up
Letting deals Barcelona 2009-2019

To date. there are 13 complete buildings with
floor areas of between 2,000 and 7,600 sq m.

7 of these buildings are located in the 22@
technology district and the Seafront area. The
attractiveness of this office zone for all types of
users is making it one of the most sought-after
on the part of flexible workspace operators.

The other 6 buildings are located in Barcelona
city centre, which boasts good connections by
public and private transport, as well as being the
area with highest footfall.

As flexible workspace operators expand the
floor area that they occupy, in some cases to
the entirety of a property, the offering of office
assets in the capital markets is undergoing
reconfiguration.

Within the last year and a half the entire
floorspace has been transacted on 13 buildings
of between 3,000 and 6,700 sq m in the
Madrid office market, along with another 13
complete buildings with floor areas of between
3,000 and 7,600 sq m in the city of Barcelona.

For the capital markets an understanding of
cash flows and covenants represents a key
element when acquiring a property.

In the case of office buildings with flexible
spaces, the investor analysis consists of
understanding and predicting the behaviour of
this type of business over the medium and
long term. In other words, the investor must
feel comfortable with the characteristics of the
flexible model itself, such as wear and tear of
the property, varying occupancy, the density
of employees per unit of floor area and added
values such as the community manager, events
and development at a technology level.

Consequently, investors may respond
differently when faced with transactions for
comparable buildings with or without flex
solutions.

LEASE CONTRACT GUARANTEES. Due to the type of businesses that take on
spaces to let to third parties, the risk of the loss of the end tenant means that
the landlord requires additional collateral, such as bank guarantees or other
types of bond.

SOLVENCY AND REPUTATION OF THE FLEXIBLE WORKSPACE FIRM.
Landlords also take into account the solvency of the firm administering the
flexible space in order to analyse how, and for how long, a loss of the end user
may be handled. At the same time, the reputation as a brand serves to improve
the probability of once again finding tenants in the short-term.

Flexible office market Spain – EFFECTIVE RENT TAKEN ON BY FLEXIBLE WORKSPACE FIRMS.

A headline rent above market level is sometimes explained by initial free-rent
periods or deployment and fit-out assistance in the form of loans. The gap
between the headline and effective rent will have an impact on the internal rate
of return (IRR) of the investment.

DURATION OF THE FREE-RENT PERIOD. Those buildings in which the free-rent
period expires will have better cash flow than comparable buildings in their
area, improving their profile in capital markets.

PERCENTAGE FLOOR AREA OCCUPIED BY SPACES ASSIGNED TO
COWORKING. For now, the perception of risk with regard to a building which is
100% occupied is greater than that of a coworking building occupied at 50% or
15%, for example.

RATE OF DEPRECIATION OF FURNISHINGS. The greater crowding and
turnover of people in flexible spaces reduces the lifespan of furnishings, likely
requiring earlier refurbishment expenditure in comparison with a traditional
tenant.

The Spanish real estate sector is still lacking
sufficient comparable investment deals for

tenant—occupied buildings with flexible spaces.

Nevertheless, it is possible to draw an outline
of the behaviour of the capital markets with
regard to flexible workspaces from buyer
intentions in Spain and the evidence from
other markets such as the United States and
the UK, where a sufficient number of
transactions of this type have been recorded.

Taking US investment activity regarding co—
working or similar assets (flexible workspaces)

The results are shown in the following graph:

as a reference, it is possible to draw valuable
conclusions that may serve as a benchmark for
markets with lower liquidity in these types of
deals.

In the Cushman & Wakefield report “Co—
working and flexible office space. Additive
or disruptive to the office market?” , 17
acquisition deals involving buildings that house
operators of flexible workspaces from the first
quarter of 2016 and up to the final quarter of
2018 were analysed.

The graph shows the relationship between the
percentage occupied by flexible space and the
initial yield of the deal. The latter is the spread
between the deal under study and a
benchmark in a similar building with a
traditional tenant. Three cases appeared:

– If the spread is positive, the risk of the deal
with flexible workspaces is perceived as
greater than that relating to the traditional
market.

– If there is no spread, the risk is perceived as
being the same.

– In cases where the spread is negative, the
perceived risk regarding a building with shared
office spaces is lower.

Faced with the evidence from the US market
and given that the spread is zero or even
negative, it can be stated that investors feel
comfortable with an asset occupancy on the

part of flexible workspace operators of
between 15% and 35%.

Properties within the sample with a flexible
workspace proportion exceeding 40%
reported positive spreads, suggesting a
greater perception of risk on the part of
investors.

Nevertheless, risk perceptions will change as
investors gain experience of the relationship
with these types of tenants, whilst the model,
though still young, is demonstrating its
solvency and value within the real estate
market.

Poorer quality buildings usually increase their
market value with the entry of a flexible
workspace operator due to the fact that these
will perform improvement works in order to
attract clients.

Flexible office market Spain – The European and context

By Emma Swinnerton, International Partner, Head of Flexible Leasing Solutions — EMEA in Cushman & Wakefield

The vast majority of office markets at a continental level will continue to expand rapidly. The
‘panoramic’ vision of Cushman & Wakefield helps us to reveal a common pattern among the main
European markets in terms of the supply and demand for flexible workspace. Within this setting,
the growth trend over the coming years will be governed by:

Significant differentiation between the major global operators and those local operators with
specific know-how regarding the dynamics of the micro-market. The major operators will be
IWG (Regus, Spaces, N918) WeWork and, very probably, Servcorp.

Theflexible workspace sector The emergence and consolidation of medium-sized operators with a portfolio of between 30

and 50 locations.

is an outstanding place to be. Some 20% of the flexible workspace market will correspond to major operators. The remaining

80% will be occupied by smaller operators, some of whom will remain independent with

With a substantial amount of between 1 and 10 m

The trend towards owners/investors entering into the direct operation of flexible workspace is

Space Still to mature, it will clear at a European level. Notable within continental Europe are HB Reavis, with its Hub Hub

brand, alongside Colonial and Merlin Properties. In the UK, we find British Land with Storey

Based on the foregoing, we inevitably see merger and acquisition activity as well as operators
seeking new product differentiation strategies and a commercial offering to ensure that they stand
out from the crowd.

Flexible Office Market Spain – Results of the Proworkspaces survey 2019

Following the success of last year’s survey of
the affiliates of the flexible workspaces
association, Proworkspaces, the study has
been repeated this year in order to go into
greater depth regarding the use of these types
of spaces and to understand their recent
evolution in Spain.

In 2019, and continuing the trend recorded the
previous year, some 70% of the flexible
workspace managers surveyed enjoyed
occupancies exceeding 75%.

Given that this was stated by 66% of the
respondents, the overall view for the coming 12
months is that occupancy will increase.

In terms of the types of users of shared offices,
some 60% of the groups surveyed revealed
that half of the businesses seeking their spaces
consisted of start—ups and the self—employed,
in equal measure.

Another significant user of these types of
workspaces, SMEs, represent demand of
between 25% and 50%.

Three quarters of operators currently dedicate
less than 25% of their space to meeting rooms.
This figure could change over the short term in
that the proportion has been at a minimum
over the past 12 months.

Over the coming 12 months, 66% 0f
the affiliates surveyed anticipate an
increase in occupancy.

Operators have continued expanding spaces whilst the
demand for flexible workspaces on the part of
corporates and the self-employed has remained
dynamic.

During the past year, solely 8% of the respondents saw
occupancy levels below 50%.

Almost 70% of operators have reported occupancy
levels exceeding 75%. This figure is good, particularly if
we take into consideration that the past year has seen
an increase in the openings of new centres of this type.

These figures are explained by the common practices
used by the operators of collaborative spaces on
opening or expanding new floorspace. Due to the fact
that the main cost item of shared workplaces is the
leasing itself, they aim to have the greatest number of
workstations pre—let prior to opening

In terms of the internal structuring of these
workspaces, some 30% of the floor area is assigned
to fixed posts (workstations that have a dedicated
table within an open plan space), without having any
flexible posts.

55% of respondents have up to 25% of their space
assigned to flexible posts (workstations with no
dedicated table).

Only 4% dedicate more than 75% of their spaces to
flexible spaces.

The size of flexible workspace operations runs from
reduced floor areas in residential buildings up to
complete buildings solely for office use and located
in prime zones.

Some 45% of these operators have spaces of up to
500 sq m and only 13% manage floor areas
exceeding 3,000 sq m.

The majority of these operators, Le. 98%, offer Internet professionals
(Internet service designed to satisfy business needs).

Along the same lines, and in order that clients are able to take
advantage of smart web traffic management with advanced security
and reliability, almost half of the operators, some 47%, additionally offer
access to in—house servers and VPNs (Virtual Private Networks).

Another of the services provided by the majority of flexible workspace
operators, Le. 70%, and which is undoubtedly the most appreciated by
users, consists of the planning of events and networking. This is aimed
at creating synergies between clients in the first place, in order to
achieve the creation of a community in the second.

In terms of the degree of internationalisation of this type of shared
space, operators were asked regarding the nationality of their clients
and 55% confirmed that between 25% and 75% of their clients
originated in the home country.

The future consists of the consolidation and expansion of these work
centres. The survey shows that 38% of the respondents envisage
increasing the floor area that they occupy over the coming 12 months,
whereas only 2% are contemplating the possibility of reducing the
floorspace that they manage. The remaining 60% envisage maintaining
their current business sizes.

Expectations for the behaviour of the prices that flexible workspace
operators are willing to charge in return for their services show a
positive trend for the coming quarters, in that 32% of the respondents
consider increasing the prices for their services.

The remaining 64% will maintain the same rates as the previous year.

will be the coming steps in Spain?

The FPI enables an evaluation of the main parameters
under which the flexible model operates both in
absolute and comparative terms with regard to other
regions.

In order to obtain this, performance metrics enabling
the quantification of market drivers at city level have
been chosen, and new parameters contributed in order

At a regional level, which factors underlie the expansion of flexible workspaces and what

The Flex Potential Index of Cushman & Wakefield and Proworkspaces (FPI) probes those
elements that favour the activity of flexible offices in Spain’s 52 provincial capitals.

to assist in decision—making on the part of operators,
businesses, entrepreneurs and owners.

The FPI weights four parameters relevant to flexible
workspaces which, in turn, bring together 13 variables
that quantify the potential of the coworking market in
the provincial capitals of Spain.

Weightings to calculate the
index * In turn, the four parameters
The Index of Flex Potential enables ggcgagggjtggggiggggg;
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FPI Methodology

13 indicators directly or indirectly affecting office demand have been chosen, particularly
with regard to the need for flexible workspaces. These are classified under the categories
of Talent, Business Environment, Entrepreneurship and Scale.

Each of the indicators studied has been homogenised
(due to differences in measurement sizes) and rescaled
(characteristic standardisation method). A score was
later calculated, With a maximum of 700 points.

The group of indicators enjoying greatest weighting
was Talent, in that this forms the basis for collaborative
working, coworking and flexible workspaces. The four
indicators of this contribute 40% to the final score.

The Business environment and Entrepreneurship
indicators each contribute 22.5% to the score of each
city. The first gives an idea of the ease and efficiency of
carrying out productive activities within each city. The
second indicates how efficient each city is in enabling
entrepreneurship and new businesses.

The Scale indicators are those contributing least to the
final score (17.5%), though give an idea of the efficiency
of the infrastructure supporting flexible workspaces.
The fact that they have a lower weighting is based on
their relationship to all businesses rather than just
flexible workspaces.

The indices presented here bring together information
at a provincial level and down to neighbourhood or
census district levels. That is why big data
management methods have been used here, in that
databases consisting of more than 40 million records
have been used.

Flexible workspaces provide entrepreneurs
and the self-employed with a social
environment, interaction and community
oriented surroundings. They consequently
represent an alternative to a home—based
office. They have also shown themselves to
be particularly attractive for employees in
technology, media and communications –
industries that typically employ a younger,
more dynamic workforce.

In addition, fast—growing companies tend to
be start—ups and/or in the technology sector
and, in both cases, often have younger staff.
The cities skewed towards these three
features are able to rapidly adopt flexible
workspaces and coworking.

Both the employees of major corporations
and start—ups may be entrepreneurs. The
former can use this capacity in a plug-and—
play style within their workplace, in order to
develop projects, teams and staff. The latter
can use flexible spaces in their initial, high—
growth phases.

It is crucial to have a workplace that is rich in
both cultural and training terms. As a result,
the measures of ITC employment, human
capital, the proportion of workers with
training and the overseas population are key
elements in measuring the contribution of
talent to the potential of the flex model.

Business surroundings

The business climate is another key
consideration. Businesses want the
adaptability of the flex model and coworking,
particularly where the traditional model uses
long-term or costly leases. In situations where
business conditions and, consequently,
staffing levels, change rapidly, the flexibility of
coworking and similar formulas may help to
maintain agility and competitiveness. Office
users will be more open to the flex model in
cities with environments favouring business,

an active job market and, in particular, one
which favours the demand for workspaces.

A strong value for ITC productive activity will
likewise help operators and business people
to activate their business. In addition, the
Doing Business index indicates the ease of
starting and running a business. These three
indicators reflect three needs for flexible
workspaces.

Entrepreneurship

Even a city of sufficient scale, with a proper
business climate and persons with talent,
needs a proper platform for entrepreneurship
to act as a catalyst for the growth of the
flexible workspace model. The net start-up
rate of companies, numbers of patents and
rental prices for business spaces represent
clear signals for entrepreneurship.

Unfortunately, the classic indicators of
entrepreneurship, such as the number of
technology start-ups, online collaboration and
business accelerators, are not available at a
regional level in Spain. In any event, we can
get an appreciation of entrepreneurship using
variables that reveal the start-up businesses in
the form of new companies and new ideas.

Scale

The scale of infrastructure is highly relevant. If
we know the office stock, the level of
economic production and demographic
pressures, it is possible to evaluate the
potential size for the coworking and flexible
working space market for a city. It is also
possible to determine the critical mass
necessary for the sustainable adoption of this
model. Madrid and Barcelona are significantly
larger than the remaining cities in Spain and,

with this in mind, it is to be expected that
coworking and flexible workspace operators
will focus on these two markets. Cities with
considerable office stock and a significant
gross domestic product with respect to the
average offer an interesting market to
operators in terms of the flex model, enabling
them to find niches.

Flexible office market Spain – Category analysis

The best positioned cities in the FPI are Madrid, Barcelona, San
Sebastian, Bilbao and Valencia. In relative terms, Madrid and
Barcelona are far ahead of the third-placed city, thanks to their
contribution to all of the indicators in both per capita terms and with
respect to total volume.

Madrid offers the greatest potential for shared spaces, mainly due to variables
representing scale and talent. The former are the highest for Spain and the latter
perform strongly as a result of its human capital index.

Barcelona occupies second place in terms of the potential for flexible working
spaces due to the fact that variables representing scale (office stock, GDP and
population density) and entrepreneurship are higher than the average for Spain. It
is also noteworthy for measures representing talent and entrepreneurship.

The third city in the Flexible office market Spain ranking, San Sebastian/Donostia, shows significant potential
for flexible workspace businesses. Among the conditions that it offers, talent and
the business climate are amongst the best in Spain. lts figures for scale reduce the
relative gap between it and the leaders.

As in the case of San Sebastian, Bilbao performs strongly in terms of business
climate. Its figures in this category are among the best in Spain. It additionally has
better provision than San Sebastian in terms of scale.

Valencia places strongly in terms of the business climate index, taking it to fourth
place in the ranking. The performance of Valencia is very close to that of Pamplona,
which places sixth in terms of the ranking by category.

The five most dynamic Flexible office market Spain display individual
characteristics that are outlined below. The figures indicate the
performance of each of the 13 indicators used for each region and set the
context for the average performance in Spain.

Madrid offers the greatest potential for shared working spaces, mainly due to its scale and
the contribution of the ITC sector to the measurements of employment and added value.
The only variables that are noted regarding the average for Spain are the percentage of
overseas population, patents per million inhabitants and the business start—up rate.

Barcelona occupies second place in terms of the potential for flexible working spaces due
to the fact that variables representing scale (office stock, GDP and population density) and
entrepreneurship are higher than the average for Spain. It is also notable for its proportion
of overseas population and strong ranking in the Doing Business index.

The third city in the ranking, San Sebastian/Donostia, shows significant potential for
flexible workspace businesses. It has some of the best positioning in Spain among the
Entrepreneurship and Scale conditions and is only below average in terms of the business
start-up rate (the number of companies has fallen in recent years) and the proportion of
overseas population.

Bilbao positions strongly in terms of the added value of ITC per capita, as well as in terms
of a major stock of offices. It ranks third in Spain in the human capital index, positioning it
strongly in terms of talent.

Flexible office market Spain

1 Madrid ____ ________—

2 Barcelona ——————————————

3 SanSebastién ———————— —————

4 Bilbao ———— ——— —————

5 Valencia ——————————————

6 Pamplona ——————————————

7 Alicante ——————————————

8 Vitoria ———————— —————

9 Zaragoza —————— ———————

10 SeviIIa ——— ——————————

11 P.Mallorca —— ——— —— ————

12 Girona —— — ————— ———

13 Malaga —————————————

14 SCTenerife — — ————— ————

15 Oviedo ——— —————————

16 Tarragona ————————— ———

17 LogronO — —— —————— ——

18 Valladolid ——— ——————————

19 LaCorufia ——— —— ———————

20 Castellén ——————— ——————
——————————————

21 Murcia — ——— ———————

22 Las Palmas G.C. — —————— ————

23 Santander ———— —————————

24 Lleida ———— ——— ——— —

25 Melilla ——— — — ——

26 Burgos — ————————— —

27 Granada ————— ———————

28 Vigo —— —— ———————

29 Huesca —————— —— —

30 Leon ——— ———— —— —

31 Segowa — ——— —— —

32 Guadalaiara — —————— —

33 Palencia — — ——— —

34 Soria — —————— —

35 Albacete — ———————

36 Ciudad Real —— ——— ——

37 Co’rdoba —— — ——————

38 Salamanca ——— ———

39 Teruel ———— —

4o Cuenca ———————

41 cadiz — ——— ——

42 Toledo — ——— —

43 Badajoz — — — ——

44 Ourense —— —— —

45 Ceuta —— — —

46 Jaén — — —— —

47 Caceres — —

48 Lugo —— — — —

49 Avila — —

50 Almeria — — — —————

51 Zamora — — —

52 Huelva __ _

The potential of the Flexible Office Market sector remains indisputable. This report has indicated the dynamics regarding owners,
operators and investors that are leading to rapid evolution and the exploitation of this potential. The best sites
in Spain have also been revealed and the most developed European markets visited. We can sum up by saying
that the ‘fleX’ share of stock will continue to grow, more operators will become landlords and more landlords
will become operators. Investors will likewise increasingly accept a greater share of coworking and flexible
workspace assets in their portfolios without worrying about the added risk.

The Proworkspaces 2019 survey has revealed that levels of occupancy remain high and that, in general, it is
anticipated that this will increase over the short term. Nevertheless, growth expectations regarding prices have
moderated and, whereas in 2018 some 44% expected to to raise prices, the corresponding figure in 2019 is
down to 32%.

The future of workspace, shaped both by flexible and traditional concepts, will come about through:

– Efficiencies in space use. This entails less space per employee, whether in traditional offices or coworking
and flexible workspaces.

– A trend towards increasing spaces for socialisation, recreation, concentration and networking

• Flexible office market Spain

– The collection and analysis of Big Data from connected smart buildings (by means of the Internet of
Things) will become increasingly valuable for users, operators and landlords.

– With greater uncertainties regarding the future workforce size due to increased automation the demand
for flexible workspaces will be strengthened.

– Services for end users, whether provided by operators or landlords, will be reinforced under the concept of
User Experience, improving the well-being of office employees.