Johannesburg - Linda Trim Director
of FutureSpace, a joint venture between Investec Property and workplace
specialists Giant Leap that offers high end co-working space, said that in
2016, there were approximately 11 000 co-working locations around the
world.
“But this figure is expected
to more than double to 26 000 by 2020. By comparison, there are approximately
24 000 Starbucks locations worldwide. Taking a cue from the popular
reference to the coffee giant’s location strategy that means there may soon be
a co-working space on every corner.”
Trim noted that co-working
spaces were increasingly popular with strong demand for FutureSpace’s
offices.
“We already have steady 80%
occupancy rate only three months after launching.”
FutureSpace plans to open
further offices around South
Africa, a possibly overseas in 2018 such is
the demand.
The biggest shift Trim
expects to see in the coming years is that co-workspace will become a key
component of many companies’ workplace and real estate strategies — for
occupiers and building owners alike.
Google is known for its eccentric office spaces, like the music room at its new office in Toronto. Picture: reuters
“Flexible workspace is not
just for millennial freelancers or tech startups anymore. Large, multinational
companies are increasingly taking on space at flexible workspace operators or
integrating shared working spaces into their own environments,” said Trim.
For example, Microsoft
recently shifted 70% of their sales staff in New York City to flexible workspace. Large
employers already make up the fastest growing market for shared
workspace provider and many businesses’ preferences are moving toward
short-term real estate contracts with flexible provisions.
Companies like IBM and
Microsoft have begun to outsource the design, building and management of some
of their workspaces to third parties.
Said Trim: “In the same way
we now purchase many technologies as services rather than as software, the
future of ‘space as a service’ looks bright.
“This model provides
companies with a way to access space in an on-demand fashion, drawing on the
knowledge of outside experts in a way that frees them to focus on their own
core businesses.”
Building owners are also
finding opportunities to revitalise underused spaces by transforming them into
the type of shared work areas that are increasingly in demand.
Already, many occupiers
won’t consider a building without available flexible space. To remain relevant,
commercial office buildings will need to create spaces that attract people to
connect and collaborate — both within the office and outside of it.
In South Africa,
as in the rest of the world, companies will soon need to think more about
accessing office space than owning or leasing it.
This paradigm shift will
require an evaluation of “core” and “flexible” space needs.
Core space is the real
estate a company must rent or own over the long term for the business to
function. Flexible space is the real estate that can be deployed quickly
without long-term commitment, adjusting in near “real time” based on
needs.
“By categorizing space needs
this way, businesses can make better decisions about how to execute a real
estate strategy that minimizes cost and maximizes opportunities.” Trim added.
One of the best examples of
large companies adopting the flexible co-working workspace approach in Asia is
HSBC’s recent contract for 400 desks in WeWork’s Tower 535 in Hong
Kong.
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“It created the right
environment for their staff, working in the same location as other like-minded
teams, including Hong Kong’s fin techs and
other start-ups, “said Trim.
By making flexible workspace
an integral part of an organization’s workplace strategy, companies can not
only provide employees with a valuable opportunity for choice and connectivity,
but they can realise meaningful benefits thanks to flexibility.
In balancing core and
flexible space needs, companies can reduce financial risks related to long-term
space needs and be nimble in making changes as needed.
“Building owners can benefit
from transforming underutilised spaces into shared working areas, which in turn
can help attract and retain tenants, “said Trim.