Serviced Offices – the future of getting back into the office?

Robin Lester, Director at Metspace shares his thoughts on how serviced office spaces will be key for companies and landlords looking to unlock the potential of the workplace in a post-Covid environment.

How are plug and play offices going to help businesses over the next 12 months as the UK economy recovers?

“Serviced offices provide the flexibility and scalability needed by businesses in an ever-changing economy incorporated into a monthly bill, with no hidden costs. Interestingly, we are seeing increased demand from not just start-ups but larger corporations too, whether for short-term projects or expansions. Scalable satellite offices provide a pay-as-you go solution where a company can enter and establish themselves in a new market in a plug and play office that is ready to be used immediately. This can be a real draw for attracting talent and as a business grows, they can react accordingly if they need to upscale.

We design our spaces to enhance the employee experience creating environments that promote wellbeing and drive collaboration. All of our offices for example are in desirable locations and we provide all of the equipment. Serviced offices come fully furnished and all under one monthly bill covering anything from internet bills to administration teams. This takes away the headache of managing, organising and budgeting for office essentials.”

Why are commercial building owners and landlords more interested in the serviced office space now?

“Both landlords and building owners are become increasingly aware of and interested in the serviced office space industry. Demand for serviced office space has been steadily rising since 2008 and the new asset class is currently valued at £16 billion in the UK and expected to rise to £62 billion by 2025.

“Now following the pandemic, the rate of growth is expected to accelerate as we are at a time where conventional leases, that typically last for ten to fifteen years, no longer suit many businesses’ plans as company’s requirements are shifting rapidly and flexibility is now key.

“Landlords have traditionally focused on long-term tenancies but can be frustrated by low yields in a stagnant market. We partner with landlords and building owners who are looking to maximise the potential of their commercial property but are lacking in the expertise to create high-quality serviced offices. The partnership model means the landlord provides the space and then appoint us an extension of their team, benefiting from our expertise and experience in creating, designing and running the day-to-day operations of the serviced offices. This significantly reduces the capital outlay and risk for landlords whilst also benefitting from the reassurance of a tried and tested product.”

Have the lockdowns fuelled demand for hybrid working? How will employers adapt to meet these demands?

“One of the key trends to emerge from the multiple lockdowns this past year has been the demand for more hybrid working from employees. Just this week Spotify pioneered a Work From Anywhere policy to enable employees to choose a working arrangement that suits them. There is a clear demand for greater flexibility amongst employees between working from home and in an office.

As a result, more companies are moving away from a centralised corporate HQ, which are costly to run and unlikely to be filled to capacity for quite some time with social distancing measures expected to stay in place. Instead, companies are moving towards an ecosystem of multiple offices spread across strategic locations with all of the amenities and facilities needed to help their workforces thrive.”