Why corporations are increasingly utilising flexible workspace
Submitted by Catrin Jenkins on
It’s easy to assume that large corporations with well-established businesses prefer to house their central operations in offices with long-term contractual lease agreements.
For some, that may be true. Yet whereas long-term office leases were once the only option, today organisations of all sizes have the ability to choose a more flexible approach - and they’re welcoming it with open arms.
Serviced offices, a cornerstone of the flexible office sector, have become the go-to solution for multinational corporations seeking a branch office or project team location. This is because:
- Serviced offices operate on short-term, flexible contractual agreements that enable occupiers to scale up or down according to the immediate demands of their project.
- They are fully furnished and ready to go, which negates the need to spend time and money sourcing furniture, telephony, cabling, and storage.
- The short-term nature of serviced office space in London and other cities creates natural churn and a constant layer of availability, which means occupiers can move in immediately; in some cases, the very next day.
- The serviced office market in London is highly competitive. This not only accentuates service standards, it also ensures clients have access to world-class business environments in prime locations.
- All points considered, serviced offices require very low capital expenditure. They also operate on an all-inclusive model, which incorporates maintenance costs and utilises bulk buying power to reduce costs associated with cleaning, insurance, rates, and IT provision.
Given the flexible, service-led and cost-efficient capabilities of serviced office space, it’s easy to see why large firms and corporations are turning to the flexible workspace sector.
Real estate advisory firm Colliers has been tracking this trend, which is particularly notable in the UK and parts of the US, and is now prevalent in key markets across the world:
“Multinational corporations have predominantly been attracted to flexible workspace by the ability it affords them to align with innovation, attract and retain talent, and to use these spaces to offer something different to staff. The flexibility offered, which in turn leads to cost savings… is also an attraction.
In all markets, traditional serviced offices have always been used for branch offices and project teams. However, the new breed of flexible workspace appeals to a wider cross-section of the market and we have seen instances of companies housing their whole operations within flexible workspace.”
There are many factors fuelling the growth in demand for flexible serviced offices here in London, as well as other locations across the UK and worldwide.
One of the biggest drivers for greater flexibility and cost efficiency came post-recession. The events of 2008-09 made particularly clear the fact that businesses operating on long-term office leases, which in most cases accounted for their largest overhead behind staffing costs, were faced with a fixed and inflexible cost at a time when flexibility was needed most.
Other factors that contributed to greater awareness of flexible workspace included the rapid development of mobile technology, Wi-Fi, and the ability to work from (almost) anywhere.
Today, these demands are continuing to shape the development of the serviced office sector. Above all, 21st century businesses and forward-thinking corporates are demanding greater flexibility from their working environment, which is especially important as the UK edges towards Brexit.
Flexibility has become a top priority for corporate occupiers, and here at Landmark we are certainly seeing greater demand for flexible office space in London from businesses both large and small. Now more than ever, business owners recognise that in order to gain stability and grow with confidence, they need an environment that is agile and malleable to their needs.
Landmark has more than 16 years’ experience delivering high quality, service-led and above all, flexible business environments. With 6 workspaces across Central London, speak to the team at Landmark to find out how we can introduce greater agility into your workplace strategy both now and in the future.