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14 September 2018

The 5 BEST Flexible Office Space’s Near Old Street, London.

basedhub Commercial Real Estate, Coworking, Uncategorised 4

Are you looking to base yourself in the tech epicentre of the UK that is Old Street, but not sure which flexible office space is right for you? In this blog, we review the best flexible office space currently available.

It’s pretty clear that the flexible office market has boomed over recent years and continues to grow. Although generally more expensive than traditional leasehold space over the mid/long-term, companies clearly see the added value a good flexible office provider can offer. Such as, having greater flexibility of term, all-inclusivity of costs and being part of an energetic business community.

Predictably, the increase in demand for flexible office space had caused a sharp rise in flexible office providers, so It can be challenging to find the right space and provider for you and your business.

You are no longer just taking office space but also adopting a business environment, it’s community and services. That being said, flexible office providers generally offer a similar product – Outrageously attractive staff, exposed services, collaboration zones with a steady supply of caffeine (and sometimes alcohol) based beverages, a vibrant community of different businesses and high-density private office rooms. However, there are also some significant differences between flexible office providers, and it’s very important to consider these before a decision on workspace is made.

In this blog, after inspecting all coworking and serviced offices spaces In a close proximity to Old Street, we explore (in no particular order) the pros and cons of what we think are the top 5 coworking/Serviced Office workspaces near Old Street, London.

WeWork

Finsbury Pavement, 145 City Road & 41 Corsham Street

With three substantial facilities all within close proximity to Old Street. Who else can it be, but the global coworking machine that is WeWork!

Most people have heard of WeWork. They are the biggest coworking provider in the world with 270 facilities across the globe and rapidly expanding.

Originating in New York, USA what started as a relaxed and cool place for start-ups and freelancers to do their work and meet with other like-minded people has now evolved into a mammoth provider of flexible office space which now attracts larger corporates tenants as well as the small start-ups.

What WeWork does really well is community and location – Also, free beer helps! Once you are a member of one WeWork you have the ability to move around the global WeWork network for normally no additional cost. This is a great perk for companies that have international clients or want to rapidly grow their international offering.

So what are the facilities like near Old Street? Well like all WeWork locations, it follows a similar design and layout with large shared communal areas, exposed services, comfy seating and then floors of glazed boxes containing desks, chairs, pedestals and a fast internet connection.

The Finsbury Pavement location is well located between Old Street and Moorgate station and very close to Liverpool Street station so very well connected. Not long opened, the atmosphere was quiet and relaxed upon our inspection so a good option if you are looking for a peaceful WeWork facility.

WeWork - Finsbury Pavement — WeWork – Finsbury Pavement

41 Corsham Street is only a short walk from Old Street station and has a vibrant community. The innovative energy is palpable as you walk through the doors into a mini-metropolis containing various companies and freelancers doing business with great enthusiasm!

145 City Road is their brand-new facility which was being developed at the time of our inspection but should be completed once this blog is published. Literally around the corner from their 41 Corsham location but on a much larger scale, this we feel will be WeWork flagship location for Old Street.

WeWork - 145 City Road — WeWork – 145 City Road

Pros: Extensive global network to travel between, Vibrant community, Spacious collaboration zones, Great locations, good range of organised networking events and workshops, collaboration phone application for members.

Cons: Generic glass-box offices, high-density of people so can get noisy, does sometimes feel like being back at university,

Price:

145 City Road & 41 Corsham Street: 5 person office circa £3,900 per month (£780 per desk per month)

Finsbury Pavement: 8 person office £5,300 per month (£662 per desk per month)

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Mindspace

9 Appold Street, EC2A 2AP

Mindspace originated from Israel, and now has 13 location across the globe with the majority of space in Europe.

The cool and contemporary coworking provider has become a popular space for creatives and small businesses who thrive in the exciting start-up environment that Mindspace work’s hard to create.

They have recently raised $20 million to help further expand into the US. Although this is a relatively small investment compared to WeWorks $4.4 billion raised in August, it will certainly help them grow their portfolio and membership to become a great WeWork alternative.

Once a Mindspace member you get access to other centres worldwide so you will be able to co-locate yourself in one of their impressive locations and network with the membership across the globe.

Mindspace - 9 Appold Street — Mindspace – 9 Appold Street

The Appold Street location has a very relaxed atmosphere helped by large open spaces, comfy seating and middle-eastern décor.

The reception and adjoining communal area feel very welcoming and there is a large kitchenette area where members can chat over fresh coffee.

Once past the main communal area you enter the private offices which are similar to WeWork in style given that they have glazed semi-transparent frontages but their fit-out feels a little more comfortable influenced by their timber vinyl flooring and dimmed lighting.

The private offices themselves are pretty standard consisting of desk, chairs and pedestals but the positioning and aspect of the building provide some excellent views across East London. Furthermore, there are plenty of large boardrooms and smaller meeting rooms for members to book at an extra cost.

Mindspace - Private Offices — Mindspace – Private Offices

In terms of location, the space is situated closer to Liverpool Street Station than Old Street but is only a short walk to the bustling Old Spitalfields market and Shoreditch so certainly in a prime location.

Pros: Very creative community feel, large open spaces, homey décor, great views, good portfolio of location to work across, extra flexible agreements.

Cons: 10min walk from Old Street station, no phone application for members to collaborate, generic private offices.

Price:

6 person office goes for around £4,140 (£690 per month per desk)

The Office Group

81 Rivington Street, White Collar Factory

The Office Group or “TOG” are another giant in the London coworking world. They have space all over the city, including multiple floors within prestigious landmark buildings like the Shard and the White-Collar Factory.

Often referred to as a more serious version of WeWork, TOG provide large open communal areas, coffee on tap and plenty of networking opportunities. Their private offices are often more private than their competitors with solid partitioned walls rather than glazed frontages.

TOG have two facilities nearby to Old Street – 81 Rivington Street and the famous White-Collar Factory building situated on the tech-roundabout.

81 Rivington is one of their very first buildings and is positioned in a very hip and artistic area of London. It benefits from a roof terrace with fantastic views, large conference rooms and adjoined balconies to some of the private offices. The building is a period property which means that the spaces are a little confined with restricted natural lighting but certainly packed full of character.

The Office Group - 81 Rivington Street, Roof Terrace — The Office Group – 81 Rivington Street, Roof Terrace

The White Collar Factory is a new building positioned right beside Old Street underground station. The building comprises of an impressively large lobby area, in-house café and roof-top bar. Oh, and also a rooftop running track for those of you who love running and don’t have a fear of heights!

The Office Group - White Collar Factory — The Office Group – White Collar Factory

TOG occupy several floors within The White Collar Factory, although most offices were snapped up by existing TOG members so their vacancy rate is always very low.

The layout is similar to TOG’s other modern facilities, consisting of large open communal areas and backroom private offices. TOG do tend to have a different style of décor on every location and on this they have appeared to favour exposed timer partitioning – makes you think sometimes that these providers are driving the trend for exposed and raw services to save material costs! Nevertheless, large open spaces, a minimalistic style and lively community provides a nice environment to work from, and I imagine their roof-top parties are pretty legendary!

Pros: Lots of facilities across London to work from, vibrant community, couldn’t get closer to Old Street Station if located in their White Collar Factory location, less generic and more private feel too private offices, mature working atmosphere, have a members networking phone application.

Cons: Lacking an international portfolio, 81 Rivington Street is a little bit pokey.

Price:

White Collar Factory: 5 people for £3,770 per month. (£754 per month)

81 Rivington Street: 5 person for £3,190 (£638 per month)

Fora

71 Central St, London EC1V 8AB

Fora, is a new coworking provider with a focus on providing extra hospitality and embracing cutting-edge technology. The entrance looks more like a restaurant than a place of work, probably because it is! They have a restaurant in the ground floor run by a MasterChef winner.

Behind the restaurant, you head into an area for workshops to take place, which look’s like a mini TED talk stage, perfect for inspirational seminars!

Fora - 71 Central Street — Fora – 71 Central Street

The private offices are all very high-tech with three-quarter partitioning and noise cancellation technology to reduce noise pollution, which is a common problem amongst most coworking facilities.

In addition, the space benefits from a library and high-end shower room with lockers. You really get a feel of high quality infused with state of the art technology when walking through the space. There are even electronic-tablets in every meeting room where you can order in food and drinks at a click of a button (or swipe of a finger)

Location wise this facility is a 10 min walk north from Old Street station which probably makes it the least ideally positioned facility, but if you don’t mind a short walk then this amazing and unique facility is certainly worth a look.

Pros: Very high-tech, Similar to a business incubator they really help nurture your business, Eloquent décor, Superb hotel-like hospitality.

Cons: Location, Looks more like a restaurant than office space from reception

PRICE:

8 person office at £6,000 (£750 per desk per month)

Campfire

81 Paul St, London EC2A 4NQ

Campfire is a newly launched coworking space which has roots in Hong Kong. There is not a huge community currently in occupation due to its infancy, but as time passes I’m sure this will be a popular option due to its reasonable price and great location.

The space benefits from a large event space in the basement with tea/coffee facilities and all other amenities you would expect from a modern coworking provider.

Campfire - 81 Paul Street — Campfire – 81 Paul Street

The private offices are a little basic but fit for purpose. You get a feel of functionality rather than style but the sizes are generous.

They are incentivising early adopter so there are some great deals to be had on this space. A good option for a small business with a lower budget that wants to be part of a growing coworking community.

Pros: Relatively inexpensive, good deals currently being made as early adopters, Spacious, growing international portfolio to utilise.

Cons: New space so no real community as of yet, décor is a little plain.

PRICE

5 person office is £3,000 (£600 per month)

We at Based Hub would recommend all of the above flexible spaces for any company looking to base themselves in the tech epicentre of the UK!

To arrange a FREE viewing on any of these spaces or if you wish to instruct us as your advisor and representation please CLICK HERE.

Written by Matt Perkins MRICS (Founder of Based Hub)

1 January 2018

Exploring the next generation of commercial property

basedhub Commercial Real Estate 0

Being a tech enthusiast, and working as a commercial acquisitions surveyor helping businesses with their workspace requirements and strategy, it is clear to me that we are entering a new and exciting era for commercial property. The tide has been changing for some time but it feels like in the last year the industry is finally standing to attention, realising that adopting commercial prop-tech is no longer an idea, but a necessity!

In my opinion, this evolution can be mainly attributed to two things; rapid Improvement in technology and a new generational mindset coming to power. The residential property sector has seen the most significant technology advancements with the rise of online-based estate agents, and now I feel it is the commercial sector’s turn. Although, I get the impression that innovators and tech companies are beginning to realise that it is a much harder nut to crack!

I thought I would start my first article by attempting to answer three fundamental questions which I am hearing on the topic of commercial prop-tech when attending events, speaking to other surveyors, professionals and prop-tech companies.

Will tech put us out of a job?

Let me deflect the concern that technology will displace the need for professionals with the rise of the surveying machines – technology acts only as a supporting tool. The majority of proposed and existing commercial prop-tech are data aggregation systems. How much of a surveyor’s time is wasted on archaic, inefficient and unnecessarily complicated portals? Tech is the solution. Ultimately, there will always be a need for professionals to interpret this data for clients and relate it to current legislation. I really don’t think any type of algorithm could tackle the plethora of different situations a surveyor has to advise on, so I think we can sleep easy for now.

Will the industry actually use this new technology?

Competition is always high and in this modern world, if you don’t embrace technology, you are not operating optimally and will ultimately not be serving your client efficiently. Commercial prop-tech is nothing new. For instance, CoStar and Egi have been around for many years and are used widely throughout the industry. The difference is that there are now several new innovators coming into the scene asking “do these platforms really offer the best solution utilising modern technology?” Certain generations might be reluctant to fully support these innovators by having the “if it’s not broke why fix it” attitude. I think all surveyors will agree there are elements of their job, normally administration, which are extremely inefficient and dated, so why not improve that by embracing technology? Realistically, I think full adoption of the new commercial prop-tech systems will be client-led and these new systems are possibly still in their infancy, so until they are robust enough in terms of data, they will not be fully implemented across the industry.

What does the future have in store for the commercial property industry?

In my opinion, I think that tech will advance in this field much more rapidly due to the increased interest from tech companies and investors. We are in a time reminiscent of when technology started disrupting the financial sector and now fin-tech is huge, but arguably saturated and at its limit, whereas commercial property is ripe for evolution. I think the first big breakthroughs are going to be the growth of new platforms like SPD and Datcha which aggregates big property data. I think we are going to see a more transparent and free movement of accurate information which will not only save time but also enable us to serve clients better by using accurate and credible data rather than the historic old boys’ network which can sometimes be as accurate as Wikipedia! There is no doubt that prop-tech is a rapidly growing side to property, and I for one, endorse the movement to a more technology integrated commercial property industry.

I also invite any surveyors to comment, as it seems our opinions are often ignored by tech companies with the focus being on the tech, but ultimately it is us who are at the front line and the main users of the technology. We at Based Hub are excited about the evolution of commercial real-estate, you can find out more about us at www.basedhub.com/about-us

Written by Matt Perkins MRICS (Founder of Based Hub)

1 January 2018

Serviced or Conventional? Which type of office space is right for you??

basedhub Commercial Real Estate 0

Choosing the right office space for your business can often be a daunting task with so many different types of office space and legal agreements out there. In this blog, we try and break down all the different options to help you choose the right type of space for your business.

SERVICED

This option is he simplest of the three, providing a plug and play type of workspace with a number of amenities provided for you including phone lines, internet connections, and furniture. Furthermore, next-generation serviced office operators usually provide added incentives such as organised events, strong collaboration zones, free beverages and online applications to help manage their office space on the move.
Main Benefits

PROS

Flexibility – short-term flexible licence agreements are the norm, typically 12 months but can be shorter. This appeals to smaller, growing business that perhaps don’t have business certainty or financial strength to commit to a 5-year lease and all the associated liabilities. It is also much easier to expand or contract quickly into or out of space which can have a huge impact on cost savings for businesses.
Cost – initial capital expenditure usually spent on things like fit-out, professional fees and IT/Data infrastructure is factored into the all-inclusive licence fee which is normally paid quarterly. So although in the long-term typically a more expensive option, it simplifies accounting procedures and budgeting and makes sense over a temporary period.
Time – rather than complex lease agreements (standard with traditional leasehold space), standard short form licence agreements are the norm, saving time and legal fees. This means that a business wanting to relocate urgently can really benefit from this swifter, managed, fitted out, plug and play type of facility.
Availability – If you are looking for space in central London for sub 3,000 sq. ft. then options are limited at the moment due to a lack of supply. The serviced office arena caters well for this size-range thus filling a significant demand gap.
Community – perhaps the newest benefit is the power of collaboration these facilities can offer, in particular, the next-generation serviced offices that really emphasise the network and unified business entity that their facilities create. This is of great value to start-up businesses that can truly take advantage of the surrounding business community for support through effective and organised collaboration.
Simplicity – the serviced office operators will fully manage your premises from cleaning to payment of business rates so the sometimes heavy responsibility of business occupation is absorbed by the serviced office provider allowing you to focus on your core business.

CONS

Cost – with increased flexibility comes increased costs. These short-term, all-inclusive contracts tend to be more expensive per month than longer-term traditional leasehold options. Also, the serviced office provider will have full power and control over cost components, which could mean savings made, might not be fairly passed onto you, the business tenant, and the provider has the ability to uplift the licence fee with comparative ease.
Control –Due to the nature of the contract, control is significantly limited. You do not govern things like signage, fit-out and who you share the space with. This can sometimes be seen by employees and clients alike as temporary and lacking brand identity. Also, the agreement is a licence, therefore, you will not have exclusive possession of your space and you can be moved or prevented from renewing which often happens so that larger, more lucrative tenancy agreements can be accommodated by providers. I have also seen situations where rooms that were originally allocated for meeting rooms are subsequently leased creating a shortfall in meeting room options.
Privacy – Serviced office space is shared, meaning that although you might have a dedicated office you are still situated in a bustling area with a high density of tenants which for some businesses raises serious privacy concerns and a challenge to protect confidential information.

MANAGED

These are the hybrid between serviced and leasehold. They are leasehold premises that are acquired and managed by a third party especially for you, typically on a 2-3 year lease but it can be for a longer term. The aim is to balance the flexibility of a serviced office and the security and control of a leased option without upfront capital expenditure or end of lease unknown exit costs.

PROS

Best of both worlds – The operator will be acquiring the leasehold space and taking all of the responsibilities that come with that. They will then arrange and fund the fit out to your specification and will tailor additional services (such as telephone lines through to photocopying) within the fixed cost to suit your needs. This could include all of the additional services that you might find in a serviced office if required but typically the additional services are limited.
They also provide flexible leases that can be tailored to your needs, whether that’s for one year or five years but it’s typically 2-3 years in length.
Accounting simplicity – There is little upfront capital expenditure as the office should be designed to your needs and everything from service charges to business rates and dilapidations is wrapped up into the quarterly payment. This essentially fixes your outgoing costs so you know exactly how much you will be paying throughout the entire term.

CONS

Reduced flexibility – While many providers claim to offer flexible contracts, in reality, they are much more fixed than serviced offices. This is because the provider will invest time and money in creating the right office for you and so needs you to sign up for a limited period.
Reduced amenities – You might not also get the full range of services offered by a serviced office. It’s worth checking your agreement and contracts for what will actually be provided and what you’ll end up paying for yourself. You need to include all these costs into your budget when judging which option is best for you.
No Community – You will not necessarily be sharing space with other tenants, so if you are seeking workspace enabling external collaboration opportunities then this option might not be for you.
Costly – Because the third party managing the lease must ensure their costs, are covered and additionally generate profit from managing the lease, the overall cost of ownership is likely to be more expensive than if you took a leasehold direct. Also, potential cost savings during the lease on things like business rates are unlikely to be filtered down to you.

LEASEHOLD

This is a more traditional form of office rental. It involves leasing the office from a commercial landlord over a period which is usually in excess of 5 years. You not only get the space but also have full control over a number of internal aspects like decoration, room layout, etc. But it also means you’re liable for repairs, maintenance and security.

PROS

Cost – Usually you get a better monthly rate over a long-term contract than you would with a serviced or managed option. The length also provides a certain level of stability, allowing you to budget further into the future.
Control – You also get a lot more say in the office’s look so it can better reflect your business. You can make space your own in a number of ways from totally redecorating it to installing new technologies.
Transparency – As you are firmly in the driving seat you can see and control all lease components including re-occurring rents, lease rights, liabilities and any everything else that comes with your acquired asset.
Availability – If you are looking for space above 5,000sq.ft (50 people) then there will be more suitable leasehold space available.
Suitability – These types of offices usually work best for established businesses that are past the major growth stage, secure financially and able to commit a lease term over 5 years.

CONS

Full liability – As you’re essentially the owner of the space during the term of the contract, you’re responsible for everything. This includes the set-up cost when moving in. Not only is there a vast amount of paperwork, as you need to sign up to internet providers, utility companies, insurance firms etc, but you’ll also be faced with a considerable upfront capital expenditure for fitting it out to your standard.
Maintenance Then there’s the general upkeep, including day-to-day maintenance of lighting, rubbish removal, cleaning and security, to long-term problems like repairing leaky roofs and resolving parking disputes.
Rigidity – You will be creating a landlord & tenant relationship by law that has all sorts of legal ramifications but primarily you will be losing flexibility, as contracts are harder to break or alter.

Conclusion

it is good to have options and variety but important to remain diligent on which option is most suitable for your business now and in the future. The right option for you is completely dependent on your specific criteria and determined by several variables. If you are still unsure on which route is best for your business, feel free to contact me for some guidance. We specialise in helping occupiers develop and implement the most appropriate workspace strategy for their business. Just tell us about your potential requirement by CLICKING HERE and we will provide you with our free initial strategy proposal.

Written by Matt Perkins MRICS (Founder of Based Hub)

4 December 2017

So what actually is Coworking and is it hear to stay?

basedhub Coworking 0

The coworking craze is hard to ignore and it is becoming increasingly popular amongst business tenants as the preferred workspace solution. Over recent years it has risen in popularity across the globe, in London alone there are around 1,000 coworking spaces and that number is growing rapidly. But why is it a rising sector and what does coworking actually mean?

Firstly, it is important to understand how it differs from serviced and conventional leasehold office space. Wikipedia describes coworking as:

“A style of work that involves a shared working environment, often an office, and independent activity. Unlike in a typical office environment, those coworking are usually not employed by the same organisation.”

So, in simple terms, coworking is a shared working environment accommodating multiple business tenants. The question that might reasonably be asked is: isn’t that what serviced offices have been offering for many years?

The main distinction between coworking and a serviced office is that one provides a dedicated suite (serviced office) the other is open-plan shared deskspace (coworking). They are often both fully managed and have shared common areas. In some cases, providers will often provide facilities which have both private office and coworking, such as WeWork and The Office Group. Personally, I think the most interesting distinction is between traditional and next-gen shared office space providers, a difference which is continually evolving and diversifying.

Community

One of the main differences is ‘community’. For example, one of the most successful co-working providers ‘WeWork’ can attribute much of its success to developing an optimal working environment and community ethos. Instead of simply providing workspace as a function, it is creating a gigantic business entity with huge international reach. This is particularly attractive to start-up companies that don’t have certain in-house functions such as accountancy, technology or marketing and want to utilise a trusted network. Being able to tap into a collective of professionals who share a common ground (i.e. their workspace and community) not only delivers great efficiencies but also offers an extra element of trust and in some cases a source of new business opportunity.

The next generation coworking providers are harnessing the supportive and collaborative atmosphere that start-ups have been thriving in for years. As a result of packaging this innovative formula, ‘next generation’ coworking providers are fast becoming a natural accelerator for SME’s and entrepreneurs alike. However, what perhaps is most interesting, is that this atmosphere has stimulated the interest of big corporates that are starting to recognise the benefits of adding coworking options to their portfolio. The potential to collaborate and innovate are the most obvious added values, but attracting the best talent also plays a part. Today’s younger employees are used to working on laptops and feel comfortable in a coffee shop style environment, so it can be argued that they will be productive and happy in a working environment that is moulded around them, providing freedom and options for different working activities. In the fight for talent, corporates are really starting to see the benefits of coworking as a strong talent attraction tool, as after all it is people that are invariably a company’s most valuable resource.

Some might argue that this community aspect also means that the line between work and life is blurring and there are arguments to suggest this can be both a good and a bad thing. The coworking company Work.Life brand themselves to promote this more transient work/life balance focusing heavily on wellbeing and fun in the workplace. Historically, workspace was an area of strict professionalism and one major criticism of these coworking spaces is that they can be immature and disruptive to productivity.. In my opinion, these new fun and social workpaces are great aslong as a proper balance is kept, but I am a millennial so perhaps a little biost!

Location

Central London has seen a rapid emergence and adoption of coworking in recent years, but it all began in Berlin in 1995 with an organisation called ‘C-Space’ who provided free public WiFi and a community environment. Although, officially, the first coworking space was opened in San Francisco in 2005 as a reaction to unsocial business centres and it wasn’t until 2007 that the term coworking became more mainstream.. From 2010 onwards coworking became more popular in European cities and the most recent figures suggest that there are around three times more coworking facilities in London than New York.

Coworking is predominantly found in major cities around the world but due to an ever-increasing location independent workforce, coworking has also emerged in tropical destinations such as Bali and Thailand. Essentially where there is a good WiFi connection and coffee, coworking will likely be present!

Technology

The world has seen huge advances in technology over the last decade, particularly in tech that helps people mobilise more easily, such as more powerful smart phones and video communication software. This wide-spread adoption of relatively inexpensive technology has spurred entrepreneurial activity in the tech sector with innovators adding “tech” after, what it seems is almost every sector! Prop-Tech, Fin-Tech, Med-Tech, Food-Tech providing some of the best examples Technology has firmly integrated itself across all industries and the efficiencies it brings have resulted in a seismic change in how we work and coworking has capitalised on this.

This is demonstrated by the changes in occupational densities. Coworking facilities are usually designed around one person per five or six sqm compared to the traditional 1:10 sqm ratio of more standard offices. This might sound very tight, but smaller computer hardware and high-tech air-conditioning systems mean that they are able to provide a suitable working environment.

Type of businesses

According to Companies House Data, 2015 had the highest number of new incorporations on record and in 2016 research from Start-Up Britain showed that that a record number of 80 UK businesses per hour were being formed!

Therefore it seems quiteclear that small businesses are exploding onto the scene in record numbers and although conventionally weak in the eyes of traditional landlords (and therefore often turned down when wanting to acquire traditional leasehold space), co-working providers welcome these companies with open arms and provide much more flexible terms which is critical to a business in it’s infancy. As a result, when done properly, coworking spaces become a vibrant arena filled with innovation and passion for work which is a powerful thing. Consequently, some established corporates from various sectors are now taking a slice of the action by co-locating, at least part, of their workforce into these natural innovation hubs.

How is this impacting the office market?

Our records show that over the last three years well known serviced office and coworking providers have acquired over 3.1m sq ft in London. When compared to traditional office take-up in London (circa 39.61m sq ft in the last three years), shared office space still accounts for a small proportion of all take-up but it is growing at an average rate of 10% per annum. But will the bubble burst?.

Traditionally landlords are put off by the serviced/co-working tenant as the perception is one of an uncertain revenue stream due to the weak covenant of sub-tenants and increased management costs due to the volume of sub-tenants using their building. However, the take-up in the London office market by coworking operators and the continued demand for space cannot be ignored and it is clear that many of the biggest landlords are making moves to change their traditional offering by:

Trying to offer more of a community feel and amenity by making the often vast reception areas into buzzing places that can be used for collaborating with colleagues, informal meetings and relaxing by adding a quality coffee shop, free wifi, modern furniture and flexible design.
Allocating a proportion of available space within vacant buildings to either co-working operators or a hybrid solution whereby more flexible leasing terms can be offered (typically one to five-year terms often with breaks) and floors can be divided so that smaller, fast-growing businesses can be accommodated. This drives income for landlords but often doesn’t directly increase the value of assets due to the traditional valuation methods favouring long leases to institutional grade covenants.
Increased and bespoke services – whilst this is rare it is certainly being looked at with the idea that if tenants want it and are prepared to pay for it, additional and bespoke services can be provided that enhance the quality of experience and move traditional offices more towards the hospitality industry and the experience you might encounter in a hotel.

The demand from coworking operators is extremely strong, with requirements ranging in size from 20,000 sq ft up to 100,000 sq ft plus. It will be interesting to see how these operators fare in a market downturn because many are so exposed to the start-up market that may turn to home working if facing economic decline. We will have to wait and see but what is clear is that people, especially 18-35-year-olds, are working differently and want their workspaces to reflect that. It is also clear that technology is resulting in innovation within the office market and the market is set to change further in terms of both how people use buildings and how technology will bring efficiencies that will influence specification especially in terms of connectivity.

Conclusion

I think coworking is here to stay. They are fun, social and enjoyable places to work, which if done right can create an optimal working eco-system which heightens productivity, innovation and happiness in the workplace. It is evolving quickly and over the next five years, I think we will see more diversification amongst providers and increased niche offerings shaped to certain occupiers.

If you are looking for the right coworking space for your business, tell us about your potential requirement by CLICKING HERE and we will provide our initial strategy proposal for FREE!

Written by Matt Perkins MRICS (Founder of Based Hub)

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The 5 BEST Flexible Office Space’s Near Old Street, London.

Are you looking to base yourself in the tech epicentre of the UK that is Old Street, but not sure which flexible office space is right for you? In this blog, we review the best flexible office space currently available.

WeWork

Finsbury Pavement, 145 City Road & 41 Corsham Street

Mindspace

9 Appold Street, EC2A 2AP

The Office Group

81 Rivington Street, White Collar Factory

Fora

71 Central St, London EC1V 8AB

Campfire

81 Paul St, London EC2A 4NQ

Exploring the next generation of commercial property

Will tech put us out of a job?

Will the industry actually use this new technology?

What does the future have in store for the commercial property industry?

Serviced or Conventional? Which type of office space is right for you??

SERVICED

MANAGED

LEASEHOLD

Conclusion

So what actually is Coworking and is it hear to stay?

Community

Location

Technology

Type of businesses

How is this impacting the office market?

Conclusion

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