Office sharing potential goes sky high with the cloud
13 November 2015 by Lucinda Stacey
The concept of office-sharing is not a new one but is certainly becoming increasingly popular. A prime example of this is at 1 Fore Street in the City of London, owned by the New York firm WeWork. With over 3,000 desks, individuals and companies can rent desks, offices and meeting rooms for varying periods of time across various locations.
The growing trend for co-working spaces has seen buildings being carved up into sub-sections with common areas between them. Services such as Wi-Fi and printing are examples of things which are included in the price of renting and it is as easy as booking a desk via a smartphone.
So is it a way of getting away from committing to lengthy leases? Mr Marmot, a professor of facility and environment management at University College London commented that “expensive, inflexible and long leases for corporate offices are no longer essential and indeed seem increasingly questionable.” The office-sharing alternative offers a fully fitted out and equipped space including receptionists, coffee and access to meeting rooms only for the duration over which they are needed. With the new technology of storing data in the cloud, this provides flexibility for individuals to move around and means that the permanent office space is no longer a necessity.
However, not only does this flexible model prove to be beneficial for workers; it is also a brilliant opportunity for Landlords. Co-working spaces that are successful are making more money per square foot than they would otherwise be, by renting out the whole unit to one tenant. This new style of company is extremely lucrative. WeWork, one example of this type of business is now valued at £6.6 billion and has been running for 5 years. WeWork has 5 locations in London and places a heavy emphasis on the community. Whilst there is a big increase in young entrepreneurs and start-ups looking for office locations, this provides an excellent opportunity to assess the market before jumping into a lease which may quickly become unsuitable. The average cost of a desk in London is placed at £256 a month, while WeWork’s Fore Street office shows their dedicated desks start at £425 a month.
Is this something you are interested in? If you are a Landlord and want advice on co-working arrangements, we here at Fisher Jones Greenwood can help you. For more information, please contact us on 01206 835300.
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