The UK market now has numerous examples of landlords operating their own coworking spaces, as well as an increase in management contracts aimed at helping property owners to capitalise on the growing demand for flexible space. British Land launched its flexible workspace offering Storey back in 2017, for example, and more recently in 2019 LandSec launched Myo in Victoria.<\/p>\n\n\n\n
Smaller commercial office operators are also starting to get involved, such as TCN which is creating offices aimed at creative businesses. To date TCN has refurbished 400K SF of space across the UK \u2014 a small amount by sector standards, but with the benefit of flexibility that comes with owning assets rather than leasing.<\/p>\n\n\n\n
These entrants are \u201csqueezing the existing operators that lease properties off landlords\u201d, Harley explained. A landlord operating a flexible space in its own property will clearly have a lower cost base than an operator that leases space. As such, they may be able to entice tenants with competitive pricing, for example. Where an operator may have previously relied on service to be competitive, this is extremely difficult to achieve during a global pandemic when everyone\u2019s margins are being squeezed. Right now, Harley argued, whether a business will take flexible space in a building you manage or not relies on cost alone.<\/p>\n\n\n\n
Get Your House In Order <\/strong><\/p>\n\n\n There are significant opportunities for flexible space providers to save money by using technology to streamline the business. Historically, tech solutions in this sector focused on the front end of the business to enhance the member experience: meeting room booking, digital entry and communication for example. Now, tech solutions can digitise many back-office functions.<\/p>\n\n\n\n \u201cWe get carried away with proptech and what it will do for members but we forget to get our own houses in order,\u201d Harley said. \u201cThere are lots of inherent inefficiencies in operations and still a reliance on the Excel spreadsheet. People still carry out \u2018centre walkabouts and checks\u2019 with a piece of paper and a pencil. This is an example of the inefficiencies in the sector.\u201d<\/p>\n\n\n\n Harley gave the process of moving out of a space as an example. In traditional property terms, a tenant would give notice, the operator would inspect the space, see what work had to be done, ask someone to do something such as paint or change the carpet, ask someone else to raise an invoice and so on, all via paperwork and emails. Using the tech solutions today, an inspector can use an app to tick off aspects during an inspection, automatically create work orders and send out a work order \u2014 saving time and therefore money.<\/p>\n\n\n\n \u201cWhen margins are being pressured, you\u2019ve got to look at ways to save money,\u201d Harley said. \u201cIf you implement good technology, you can benefit in ways you can\u2019t predict \u2013 the opportunity to redeploy someone to do something that will generate income, for example.\u201d<\/p>\n\n\n\n While the millions of people currently working from home might not fill the hearts of any organisation offering flexible space with confidence, at some point the UK will emerge from the impact of the global pandemic. When that happens, having a grip on costs will be just as important in an increasingly competitive sector. As Harley said: \u201cOperators need to make themselves ready for people to come back, because they will.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":" Even before the global pandemic struck, flexible space providers were facing a competitive market. As the sector continued to grow, the number and types of organisations involved was expanding rapidly. Many landlords were no longer content to watch operators capture the attention of businesses that increasingly want flexible space. The competition for a piece of…<\/p>\n","protected":false},"author":897,"featured_media":5167,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[218],"tags":[],"class_list":["post-2520","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coworking"],"acf":[],"yoast_head":"\n![\"\"](\"https:\/\/www.yardikube.com\/wp-content\/uploads\/sites\/101\/2023\/04\/Screenshot-2020-11-30-at-09.33.0.jpg?w=1024\")
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