Are companies and their employees a good fit for your flexible workspace?
As companies and their employees seek out flexible workspace solutions, the increase in demand has initiated an evolution in how operators are developing their spaces and their business strategies. But are they a good fit for all flex and coworking space operators?
With the shift from working fully remotely during the pandemic now abated (Fully remote employees now only represent 15% of the workforce), it’s become increasingly apparent that employees still want to have more control of how and where they work with 53% of remote workers wanting their future work model to combine home, office and a third place.
As a result, companies are now focused on creating long-term hybrid work models that align the needs of their people and their businesses. This means that the traditional office solution, with long leases and inflexible terms, is no longer viable.
Flex and co-working spaces tick many of the boxes that create not only the ideal workplace environment for their people but also make good financial sense.
“Companies keen to cater to employees’ needs and reduce real estate spending all at the same time, still need to provide an attractive office-like experience to distributed teams.”
As an operator, it’s tempting to jump in here and adapt your business to fill this need, but before you do, it’s important to ensure this model is viable for your business growth strategy. Does it make good business sense for you?
Understanding what companies and their employees are looking for.
We’ve identified two of the most common commercial real estate models that we are seeing companies opt for when making the shift from long-term leasehold buildings to flexible workspaces.
Model 1. A managed office space contracted by the company for its hybrid workforce.
This model is ideal for companies that want flexibility with their finances and their space capabilities. The ability to upsize and downsize at short notice is a key demand, with furniture and space configurations flexible enough to accommodate a variety of uses from meetings and events to open-plan project rooms and cubicle workspaces.
Some companies prefer an integrated workspace, allowing them to optimize the community aspects of the space, while other companies prefer private offices to preserve their company culture and encourage employee interaction and collaboration.
Location, style of building, communal spaces, reception area and amenities such as in-house barista, bar, gym and even a café all play an integral part in attracting and retaining the corporate clientele.
A great example of this is the operator Common Desk. They had a client who wanted to create ‘a space within a space’ so they had a purpose-built fully customized office designed just for them, enabling them to take advantage of having a fully managed space, but that would also reflect their own business brand and culture.
Jade Mauldin, Director of Community at Common Desk shares her thoughts with our very own, William Edmundson, on the challenges of balancing company needs with expectations.
“The challenge with enterprise suites in a coworking environment is maintaining a balance between the flexible office concept and meeting the needs of teams seeking a more structured setup. Those interested in suites often prefer a more conventional setup but appreciate the flexibility in lease terms and customization options.
As Jade goes on to explain,
I just hope that those looking for something more traditional while still flexible will give coworking spaces like Common Desk a chance to show that we can cater to any and all needs! Through experience, we've found labeling these spaces as "spec suite plus" and emphasizing their traditional features, alongside coworking benefits, proves to be beneficial in marketing them effectively.”
How can operators attract these types of customers?
These companies are likely to source flex work spaces using one of two main routes. The first being a direct approach, using a local search engine and identifying coworking spaces in their area that offer private, managed offices and speaking to them directly. The second is by using an aggregator such as Instant Offices or LiquidSpace. Using an aggregator allows companies to shortlist and compare viable options and find the best solution quickly and reliably.
As an operator, this means that the better your website performs (SEO-optimized and user-friendly, not to mention mobile-friendly) the better chance you’ll have in attracting corporate customers. Ranking for key search terms related to managed flex space for enterprise customers is critical to being found by the right people. Ensure detailed information is available and if you’re trying to attract companies as customers then create exclusive sections on your website detailing your value proposition.
Model 2. Private offices, dedicated desks and hot desks contracted by the individual employee and paid for with a stipend given by their employer.
The second model that companies are opting for was a common choice early on in the pandemic and was originally seen as an interim solution until the workforce returned to the office full-time. Today, it’s become a permanent fixture in many companies’ long-term real estate strategies. This is where the company provides their employees with a set stipend for them to choose a workspace suitable for their needs in terms of location and amenities.
As Faye Stutts, Director of Partnerships at Vari explains,
“We’re seeing a lot of operators upgrading and changing their spaces because all of the Fortune 500 companies are giving their remote workforce a stipend to choose their own workplace and it’s always a 100% turnkey solution. I can’t overestimate the importance of ‘knowing your customers’ and delivering on their needs enough!”
A favorable option for many employees, it gives them the autonomy to choose their own workplace which is very appealing. For example, those wanting to reduce their commute but still experience the office environment can select a location close to home or near their child's school.
Others may wish to experience city life and all it has to offer, opting for a bustling, vibrant location close to amenities such as bars, restaurants and theaters for client meetings or after-work events.
Employees may also seek out the space to suit their job type. For example, tech types tend to prefer quieter, cubicle-style space configurations that enable them to work diligently as their role requires little interaction. While creative types may need the buzz of an open plan layout, with a variety of communal spaces that encourage collaboration and connection to keep them inspired and engaged.
How can operators attract these types of customers?
As this model has become so popular, many companies are now putting together a network of aggregators for their employees to access. Having already negotiated terms with an aggregator for things such as price, amenities and benefits included (meeting room access, printing and digital postal services) the employee is then free to make a choice from the options their company provides.
Other ways may be creatives asking other creatives on community chat boards to share experiences and insights into the best places in their area to meet like-minded people. Tech workers may immediately jump online to research and read reviews through portals like LiquidSpace and Coworker, helping them make a more informed choice.
The first steps to attract companies and their employees into your flex workspaces.
At the very heart of flex and coworking is community and collaboration to develop your network for business growth. This opportunity is no different. To successfully attract companies and their employees to your space, we suggest you develop and utilize the networks you’ve already got.
Here are our top 3 action steps to get you started,
I. Make sure your website is professional, user-friendly and optimized for local SEO
Most people begin their search for a workspace online, whether they are a company or individual, so it’s essential you can be found quickly and easily. Make sure you’re optimized for local SEO and create a strong Google Business Profile, update it regularly and users can leave reviews sharing their experience of your space.
As well as focusing on your own website, make sure you are listed on aggregator portals that provide wider marketing opportunities to get your space in front of more customers. Think of sites like Liquidspace, Instant Offices, Coworker and Findworkspaces.
II. Crunch the numbers
It’s all very well creating the right mix but if the numbers and square footage don’t add up then you’ll need a rethink. If your numbers do stack up, next think carefully about curating a selection of bundles/packages that appeal to each audience, including things like digital mail, hybrid workspace software, project management tools, furniture, additional hot-desks and meeting room hours. Remember what Jade from CommonDesk said:think about labeling packages specifically for this market, like their ‘spec suite plus’ to meet flexibility needs in lease terms and customization options.
III. Build a team of strategic partners
Include real estate experts, leasing/contract specialists, furniture suppliers, other coworking and flex space operators, web developers and commercial interior designers who focus on coworking and flex space. Think about who can help you create the right kind of space to attract companies but also who can help you close the deal.
There are lots of opportunities for you to embrace the shift to hybrid work and grow your flex space business, but you must begin by gaining deeper insights into what companies around you really need and if they fit with your business model. If not, then explore the options to adapt and evolve but ensure they are financially viable.
