Maximise Occupancy and Revenue in Your Commercial Property with Flexible Workspace Solutions

Is There a Genuine Market Opportunity?

The first question to ask is whether there is sufficient demand in your local market. Is there a shortage of quality workspace, or is the market already well served? Understanding the competitive landscape is essential before investing time and capital into a flexible workspace proposition.

If there are existing operators nearby, take the time to understand how they are performing. Are their offices full? Do they have waiting lists? What are they charging for offices, desks and meeting rooms? Are they attracting the type of occupiers you would want in your building?

In some locations there may be a clear gap in the market. In others, particularly established office markets, competition can be fierce. Cities such as London, Manchester, Birmingham, Edinburgh and Glasgow already have a wide range of flexible workspace providers, many of whom operate from highly specified, amenity-rich buildings with significant marketing budgets and established customer bases.

Before entering these markets, it is worth considering what would make your offer different and whether it could compete effectively for occupiers.

Do You Have the Capital for a Quality Fit-Out?

The second key consideration is investment.

Today’s occupiers have far higher expectations than they did even five years ago. The days of simply dividing a floor into small offices and expecting them to fill quickly are largely behind us.

Most businesses now expect comfortable breakout areas, professional meeting rooms, high-speed connectivity, well-equipped kitchens and spaces that support collaboration as well as focused work. Features such as phone booths, cycle storage and showers have become standard in many mid-market flexible workspaces.

At the premium end of the market, occupiers may also expect facilities such as gyms, cafés, event spaces, wellness areas and hospitality-led customer experiences. Naturally, the cost of delivering these facilities needs to be balanced against the rental levels and occupancy rates achievable in the local market.

Listed buildings can provide a significant advantage thanks to their character, heritage and architectural features, all of which can create a distinctive workspace environment that is difficult to replicate in modern developments. However, listed buildings also come with their own challenges, including planning restrictions, higher maintenance costs and limitations around alterations and accessibility improvements.

The key is ensuring that the level of investment aligns with the demand, pricing and competitive position of the local market. A great building alone does not guarantee success. Understanding your customers, your competitors and your financial model is what ultimately determines whether a flexible workspace venture will thrive.