Why it makes sense for developers to dedicate a portion of their real estate to a flexible workspace
Co-working is an industry that has been around for four decades now, but recent numbers indicate that it is quickly evolving and overtaking the office spaces market globally.
The rise of global flexible working spaces
London has seen an increase in co-working spaces over 2007 and 2011, with a total of 1.2 million square feet being let out to flexible working spaces. This increased to 4.5 million in the next 5 years and in 2017 itself, 2.5 million square feet was added to the co-working industry in London, a 190% increase from the previous year.
According to data released by Cushman and Wakefield, co-working spaces make up 27% of the working space in Singapore, and these spaces have seen the best growth for the business. The total flexible working space in Singapore in recent years has almost tripled from 1 million square feet to 2.7.
In India as well, workspace space providers leased out over 1.2 million square feet of office space, and this is predicted to increase exponentially over the next few years.
Corporates flocking into flexible working spaces
Co-working spaces have a popular image of being relevant only to entrepreneurs and freelancers, but research indicates that corporates are now major shareholders.
Companies such as General Electrics and Johnson & Johnson are leading corporates that have partly switched to flexible spaces. Such spaces offer millennials the right kind of working environment, encourage productivity and help maintain standards of work, operations and subsequent profits.
Office users find themselves occupying only 40% of their desk space, and trends reveal that corporates are increasingly interested in providing incubation and flexible spaces to smaller tenants.
What does this mean for developers?
Developers or real estate agents have mostly focused on singular clients and large enterprises. When they start to consider flexible working spaces, they open themselves up to multiple clients and tenants.
A space such as Skootr offers managed office spaces for developers. Developers are increasingly preferring to convert 20-30% of their land to co-working spaces, giving their clients flexible options for their company. This also guarantees safety for the developer, as they don’t have to depend on one large conglomerate to keep them up and running, and effectively helps them distribute their risks.
Skootr’s Managed Office Spaces
Flexibility is where the entire working space market is headed. Skootr offers managed office spaces and partners with real estate agents to convert part of their space into a managed office.
Skootr handles all the management associated with tenants, from finding them, customizing the office to their needs, and managing their everyday needs. It gives businesses the option to focus solely on their work and provides all the administrative, technical and infrastructure support that they need.
Advantages of Flexible Workspaces
Flexibility. Skootr facilitates upsizing and downsizing for businesses. Moreover, there is no long lock-in period for the business, giving companies more options and freeing them of restrictions. As Skootr’s business model includes many clients, we are capable enough to provide for this kind of flexibility, which is the newest trend for businesses.
Customised working spaces. Your flexible working space can allow for the maximum number of customizable features for your client. Ranging from specially designed spaces depending on the structure and type of your organization, to features such as ergonomic furniture, high-tech napping pods and relaxation zones.
Manages your operations. Along with providing the required infrastructure, such as high-speed Wi-Fi and lease lines with failover, Skootr also covers the office cleaning and maintenance staff as well as administrative staff.
Skootr can assist real estate developers in optimizing what portion of their space should be turned into a flexible office, and then convert it for you. We understand that there is always a portion of the business that is volatile, which cannot be planned for.
When part of your business is flexible, you can make your entire business more stable and sustainable. Getting an agency like Skootr to help redistribute your workspace across traditional workspace can help utilize your real estate more efficiently and provide your tenants with a better working environment. Dedicating a portion of your real estate to a flexible workspace is surely the wisest way to move your business ahead in the current climate.
