From immediate plug and play office space for start-ups to bespoke solutions for shape shifting corporations…
Flexible workplace solutions are being sought with increasing frequency. The huge rise in flexible leasing in recent years has transformed the London and UK office landscape, providing businesses of all sizes an alternative to traditional leasing. A variety of new, imaginative workspaces are emerging as businesses become increasingly conscious of the impact environment has on employees.
In the past decade the global market has tripled, and the UK are leading the way, accounting for over a third of the world’s serviced offices. If this is on your agenda for 2019, we’re here to make it a little easier. We get expert insight and a no-nonsense breakdown of the options available from Gemma Foord, Director and Head of Flexible Workplace Solutions at DeVono Cresa.
Choosing a Flexible Workplace Solution
Flexible, hassle free and cost-effective private workspaces with inbuilt services for businesses.
This ready-to-go model allows you to turn up and plug-in, with no (or a very low) start-up cost. Everything from the rent to the reception staff, utilities , furnishings, cleaning and IT support are included in one monthly licence fee, allowing you to budget confidently.
You can take anything from 1 desk to 1,000+ and an on-site operations and facilities management team take care of the day-to-day, so you can focus on business.
Image credit: Fora – Fitzrovia – Eastcastle St
A hybrid between serviced and traditional office leasing – this is a blank canvas which can be branded and personalised by the business, under the management of the landlord. The monthly ‘managed office , all-inclusive fee’, includes all the property costs, as well as many of the operational. On top of this, the initial fit-out expense is amortised over the term. For those without the time or resources to take on a conventional long lease, a managed floor could be the ideal low-risk solution allowing for fast set up – usually within 3 months.
This type of lease refers to the residual time remaining on a conventional lease, that is no longer required by the incumbent tenant. This type of solution suits opportunistic occupiers who want to benefit from inheriting a fully fitted office, fast. Due to the nature of this solution, the length of lease and the level of fit-out included will vary.
Why you should be thinking Flexible
Known as ‘Core and Flex’, expanding businesses are increasingly using flexible options, including virtual offices, to compliment their existing office or test new locations. If you have difficulty accurately predicting head count, they provide a pressure valve for expanding teams and long-term office commitments. These can otherwise be costly and difficult to secure under traditional leases.
Are you utilising the technology advances that further enable remote working and offer the mobility that supports flexible working? The flexible set-up offers a convenient solution for those needing to work remotely in a fully connected space.
Surround yourself with innovative businesses, like-minded individuals and fresh talent. Greater focus is also being given to locations which improve recruitment and employee satisfaction through superior aesthetics and atmosphere.
Accounting standards on lease liabilities
The new IASB accounting standards recognise all leases greater than 12 months in length on the balance sheet. Rent is no longer recognised as an expense but as interest and depreciation. Serviced office agreements are typically shorter and more flexible than regular leases falling outside the requirement.
Demand for flexible, serviced office space has grown by a third following the Brexit decision. As uncertainty following the EU referendum continues, businesses can
What to Expect
Inject your own personality With a growing focus on design-led work spaces, many operators actively encourage clients to brand their space. Businesses can inject company colours, logos and design features to create the right look and feel for employees and visitors – an environment that represents the company culture.
Cost effective on balance The monthly spend for a flexible office can seem higher, but contracts are inclusive of various provisions, amenities and utilities. When the full package is taken into consideration and ancillary costs factored in, it can work out very cost-effective. Additional financial incentives include small deposits, no dilapidations and little, if any, capital expenditure.
Image credit: Fora – Reading – Thames Tower, Station Road
Secure, fast connectivity With cybersecurity at the top of the corporate agenda for occupiers, operators take their responsibility seriously. Most invest in in-house IT experts and provisions to protect client privacy – ensuring a robust and resilient service. High-speed fibre optic broadband is standard, with many offering efficient upgrades. Core and Flex The all-inclusive monthly pricing model offers agility, free from costly long-term supplier contracts or facilities management, making it the ideal solution for expansion, project or overflow space. Access all hours Nearly all serviced offices are accessible 24 hours a day, 7 days a week; providers understand that many businesses work long or global hours. To further support 24/7 flexibility, many buildings offer great amenities such as showers, bicycle storage, gyms, on site restaurants, bars, cafés, events, dry cleaning and much more.
Image credit: The Team, Park Street – Design & Build by Dthree
On the Occupier Journey
London presents a diverse, established market with opportunities to negotiate rental prices. Unlike a conventional leasehold, which has increased regulation and is dictated by the market, serviced office pricing varies month to month. Location, building quality, fit-out, furnishings, the extent of service provided will all play a part in determining the cost. The centre occupancy level will also be a large determinant, akin to hotel room availability.
With an increase in operators and incentives, both tenants and providers rely on the in-depth market knowledge of commercial agents who specialise in flexible leasing advisory to navigate the complexities of securing the right deal for businesses and their operations.
At DeVono Cresa, one of Couplepreneurs Trusted Advisors, experts guide you through each step to ensure that your workplace decisions align with your wider company strategy. They constantly develop new and improved ways of delivering clients solutions, specialising in advising on the whole market. Both conventional and flexible office solutions are provided to ensure you have full visibility of all options available to you and your team.
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