Thousands of businesses are changing the way they organise their workforce, with demand for flexible working spaces set to grow by 30% annually for the next five years within Europe. It’s one of the biggest shifts experienced by the property industry in recent times. Businesses are expanding on the very definitions of what it means to make a company successful and revising old methods of working. Here are 4 reasons why the demand for flexible working space in London will continue to rise.
Scalability is the number one reason why the demand for flexible working spaces is growing. Businesses of all sizes, from start-ups to multinational corporations, need flexibility in their working practices alongside adaptability on demand. Having the ability to grow or shrink the amount of desks used is an advantage from the perspective of cost and convenience. Corporate structures are becoming more agile, leaving behind their typically characteristic rigidity, and reacting to changes faster by taking advantage of the flexibility and ease of serviced office spaces. Small businesses and start-ups have been the first to take advantage of all the benefits offered by serviced working spaces and now even large companies are seeing how these spaces can assist them. With this in mind, the London property market is already anticipating a sharp rise in demand from the big players in the next three years.
A business of any size can appreciate the cost-efficiency of serviced flexible working spaces. Set up costs of design, furnishing and Wi-Fi can be prohibitive, especially in high-demand locations like London and even more so when lead times are tight. As discussed above, businesses are becoming more agile and sometimes this translates to needing a working space as soon as possible, rather than when all the bits of furniture and tech are delivered and installed. The combination of time and cost is precisely what is going to drive the demand for flexible working spaces, it’s a solution that offers immediacy without long-term commitment and with a price tag that’s inclusive of all the services a business would need to get up and running.
The uncertainty associated with Britain’s decision to leave the EU is yet another reason behind the rising demand for flexible working spaces. Businesses are understandably wary of making any permanent decisions before a concrete deal is struck. It’s difficult to predict exactly what will happen once the Brexit deadline of March 29th passes and businesses are hedging their bets by utilising the flexibility offered by serviced and virtual offices. Many plans of expansion have been halted due to Brexit with businesses and investors alike acting cautiously in the face of political uncertainly and are thus less inclined to sign leases or make property purchases, all the while still needing to conduct business on UK grounds.
Whilst not the most important factor behind the rising demand for flexible working spaces, design nevertheless features prominently in the list of reasons why this new way of working has resonated with so many businesses. We live in a highly visual age with apps like Instagram providing encouragement to think aesthetically when it comes to branding. Luxury serviced offices offer businesses the opportunity to select offices from a range of carefully designed spaces, with something to suit every brand’s look. First impressions continue to matter and companies are very acutely aware of this. The ability to select an attractively designed office (whether that’s a sleek contemporary one or something more traditional) and get to work immediately appeals highly to any business that seeks to communicate a brand message through their image.
London’s commercial property revolution is already underway as start-ups, multinational companies and everyone in between take advantage of the convenience offered by flexible working spaces. This is just the beginning though as political development will continue to influence the business world. Get ahead of everyone else by exploring why LEO is the market leader of London’s luxury serviced offices.