Save with shared spaces

For companies struggling to manage heavy financial losses during the pandemic, reducing real estate rental costs may provide a lifeline — and coworking spaces could be a long term financial solution.

A recent study found that commercial real estate costs around 9-12% of a company's total base, but with a predicted 50% of the workforce currently acting remotely, how can we ensure the empty office space left behind is properly utilised, and accounted for financially?

Some offices could consider converting empty “ghost office” spaces into 24/7, healthy coworking spaces, yet this would present organisations with added installation and maintenance costs. Space conversion, though, can be a critical initial step in mitigation - allowing us to recoup some losses during a phased or staggered reopening.

Employees hesitant to make radical layout changes in-office should consider a flexible alternative - leasing of shared workspaces, providing rapid change in a more agile environment. Coworking spaces are by no means new. In fact, around 63% of organisations use some degree of coworking, as companies seek to provide a sense of community that is crucial for smaller businesses.

And larger companies are also investing - tech giants such as Facebook, Apple and Amazon have all acquired flexible workspace, and banks such as Santander and HSBC, as well as professional services firms like Grant Thornton, have opted to acquire some flexible workspace in addition to their traditional offices.

One study found a massive 52% of employees want to work in coworking spaces in the future ideally - and collaborative or shared spaces were rated as the top three spatial features in the user survey conducted for this study.

The inherent agility that flexible space provides, and the lack of capital commitment, should be very compelling to organizations large and small. Flex space enables organizations to leverage their real estate as an agile asset rather than a fixed one, with a recent study by Agile Practice Group finding that the economic value of flexibility is actually greater than the cost of a flexible lease.

For most businesses, the best option will be a flexible combination of remote/shared and office work – also known as the hybrid-working model - giving employers and employees the best of both worlds, the flexibility of remote work and the collaboration and interaction of the office. By effectively blending co-working spaces, traditional office spaces and remote work, employers can benefit financially, whilst providing employees with the tools and technology needed to thrive.