BE Informed | Back-to-school edit | 2023

BEINFORMED The back-to-school edit 2023

Issue 2

The future of the workplace Brought to you by

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2 | The summer edition 2023

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LIZ HAMSON EDITOR-IN-CHIEF, BE NEWS

Back to work – but not necessarily the workplace WHERE are you? In the office? Working from home? If

second BE Informed edit. First, we gave AI image generator

you’re full time and reading this on a Monday or a Friday,

Midjourney some prompts to see what it would come up

there is a good chance you’re at home. If it is Tuesday,

with. Seconds later, it had produced our front-cover image,

Wednesday or Thursday, you’re probably in the office,

a pleasingly biophilic vision of the future. In our scene-

possibly having struggled to find an available hot desk.

setting feature, we also ask what the impact of the ongoing

In the era of hybrid working, our work patterns are very different to what they were pre-pandemic – and while the great return to the workplace has picked up momentum,

uncertainty was having on take-up. Then, it’s over to the experts – you – to deliver your verdicts.

The consensus is that, as Nick Leslau notes in his

driven by the very tech companies that during the

recent comment piece for BE News, employers need to

pandemic were first to desert it, the prospect of being back

focus on offering great surroundings rather than reverting

in the office five days a week is slim to nil. Frankly, the days

to “dreaded hot-desking” and “treating staff like battery

of the five-day working week look numbered.

hens in an attempt to cut costs”. Get it right and the

So, what does the future of work and the workplace look like? That’s the question we set out to answer in our

workplace has a bright future. Get it wrong and employees will vote with their feet.

WHAT’S INSIDE

How long will we stay out of office?

P4

Yardi on the shift to flex workspaces P6

IWG discusses the hybrid revolution P12

Smart Spaces on office ‘hotelification’ P8

Striking a balance is key, says FlexSA P14

Offices vital for our cities, says Regal P10

Locale on why hybrid is here to stay P16 BEINFORMED | 3

IS the tide finally turning against the work-from-home revolution – or are lines being drawn for a new battle over where we work? Those involved in the office property sector are monitoring developments closely, with some office agents warning that the lack of clarity over the future of the workplace is threatening to spark a similar existential crisis in the office sector as has devastated retail.

So, as people return to work – but not necessarily the official workplace – after the summer holidays, what does the future hold for the sector?

Opinions are currently divided. In one corner, chancellor Jeremy Hunt said earlier this year that the office should be the “default” location for workers unless there was a specific reason to work from home, while

How long will we remain out of office?

Lloyds Banking Group announced that staff who had previously enjoyed flexible arrangements would now be expected to spend at least two days per week at their desks. Investment

As uncertainty continues over the future of the workplace, Matthew Valentine asks what impact it is having on take-up

manager M&G reportedly instructed managers to stop “working from home in enormous houses while their staff are coming into the office”, and in late

“Worker footfall might therefore be

to quality and notes that initial

August, Amazon chief executive Andy

down in city centres, by as much

predictions of a 20% to 30% fall

Jassy told staff it was “probably not

as 21% lower in some places, but

in demand for office space were

going to work out” if they were not in

that won’t necessarily trigger office

incorrect. “Issues surrounding

the office three days a week.

relocation, as many businesses feel

increased occupancy levels on

they need to retain location prestige.”

certain days of the week and business

In the opposing corner, a Labour government is understood to be

expansions have produced a very

considering policies that include

Flight to quality

different story,” the firm says in its

a ‘right to work from home’ from

There were fears that occupiers

Spotlight on UK Regional Offices

an employee’s first day in a job – a

would dramatically reduce their

report published this March.

policy that would clearly be popular

space requirements, but figures from

However, while take-up has

with many workers, many of whom

Savills show the market has remained

increased, deals are taking longer to

are already making it a condition of

relatively buoyant, with regional office

complete. BELCOR partner Oli Cohen

employment post-pandemic.

take-up for the second half of 2022

says uncertainty over the return to

The ongoing popularity of

up 11% compared with the first half

the office is one of several factors

hybrid working has prompted many

of last year. It recorded 296 grade-A

slowing down the market and worries

employers to review their office

transactions, the highest number since

that employees and politicians are

requirements.

2000, while total take-up of regional

being allowed to dictate terms when it

office space in 2022 amounted to

should be occupiers.

“There’s undoubtedly been a shake-up in demand for office space,” says CACI director Alex McCulloch.

4 | The back-to-school edit 2023

5.8m sq ft.

Savills identifies a clear flight

“Companies need the control and power to decide the best way to run

get cold feet,” says Cohen. “A lot of the time the process can be so slow and painful that they decide ‘let’s just go into a WeWork for six months and see what happens’.”

Market momentum Shaun Simons, co-founder of Compton London, says that some parts of the market are faring better than others. He says that with smaller office spaces, of up to 5,000 sq ft, deal activity is virtually back to pre-Covid levels. “Yes, there is more supply, because we have the hangover effectively of two and a half years of no deals, but momentum is in the market,” he says.

However, at the other end of the market, things are “far stickier”, Simons says. “Decision-making is far slower, and with good reason.”

A large company choosing a premium office development for more than 200 staff is looking at a substantial investment. “In theory, you are signing up to, say, a £20m commitment over a 10-year period, which is fine, but who on earth is going

Oli Cohen, BELCOR

to make a £20m commitment when

factors is solicitors being too slow, and

there is so much uncertainty around

additionally traditional leases being

who’s in the office, or the frequency of

too archaic,” he says, noting that it is

when they are in?” Simons asks.

far easier for a small company of 25

“People don’t want to make

to 50 people to move into a serviced

decisions. Smaller businesses can

office than traditional office space.

make those decisions. If they employ

“They [serviced offices] are really

about 50 people, they’ve got good

simple, single licence agreements,”

visibility on what their policies are, who

he says. “There are no real obstacles

is in, how the business is doing and

their business. If all of a sudden they

or barriers. Unfortunately for small

everything else. When you start going

are being dictated to by employees,

to mid-size companies, when it’s

up the size brackets and the figures

the shoe is completely on the wrong

20 to 50 people and they are taking

start to become more significant,

foot,” he reasons.

traditional spaces, you are still having

you’ve also got less visibility as to

“Businesses have to be adaptable.

to go through what is usually a 30- to

what is going on with your team. It

If all of a sudden that policy comes

40-page lease. Then – and this is my

makes everything really difficult.”

in, people are going to work from

pet peeve – it is sometimes taking

home. That can completely ruin the

solicitors two or three weeks just to

emerges over the future of

effectiveness of a business; it can ruin

get the legal documents out.”

the workplace, people’s out of

a culture of teams and workforces.”

Deals are taking far too long

Sometimes the delay can scupper the deal completely. “The occupiers

Unfortunately, unless clarity

office alerts could remain on for some time.

BEINFORMED | 5

ZASTOLSKIY VICTOR | SHUTTERSTOCK

Companies need the control and power to decide the best way to run their business

to complete, he adds. “One of the

A flexible future As employees continue to shy away from a return to the traditional office, more and more businesses are making the move to flexible workspaces

THE future of the office as we know it

business model around the different

The future of commercial real estate

is still unclear. With some businesses

streams, such as residential, offices,

As more businesses make the move

such as HSBC wanting to reduce its

or retail.

to flexible office spaces, commercial

global office space by 40% due to

But it’s not that simple anymore.

real estate needs to evolve with it. So,

hybrid working and cost-cutting and

Now we can look at a building and

where do you begin? Let’s explore

others, such as JPMorgan, Apple

see what the best option is, which is

the avenues available and how

and Google, mandating a return to

far more likely to be a combination.

companies can better facilitate the in-

the office, what does this mean for

The building of the future as Yardi

demand, hybrid working model.

commercial real estate?

envisages it includes commercial,

•

The Unispace Global Workplace Insights report, Returning for Good,

Joint venture – management

residential and coworking elements

contract

under one roof.

This popular operating model is

which surveyed 14 industries and 17

The real estate industry is

countries worldwide, reveals that 51%

already seeing a surge of diverse

and a coworking or flex space

of workers globally are reluctant to

portfolios to help reduce risk and

operator. This is an intuitive way

return to the office, down from 64% in

improve its return on investment –

for property owners to utilise

the 2021 report. Based on the survey,

especially after the effects of the

their asset without learning

“hybrid is the most common model

pandemic hit specific real estate

the complexities of flex space.

for firms globally, with 50% of the

verticals more than others. So, if you

The operator sees reduced risk

workforce indicating that they are

want to grow your economy and real

of starting their location from

in the office four or more days, with

estate investments, you must have a

scratch and will manage the

a weekly average of three and a

diverse selection of real estate within

space in exchange for a monthly

half days”, the report says.

your portfolio.

management fee.

It suggests that the relationship

a partnership between a landlord

•

Acquisition model

employees have with the office

This model is ideal for commercial

has changed as people prefer to

real estate firms that are experts

complete collaborative work in the office and individual, focus or admin work at home – but they need a specific reason to go to the office.

As Andrew Mawson, managing director of workplace consultancy

in acquiring assets but don’t have

Introducing flexible space into your portfolio attracts a more diverse tenant base

the knowledge of the intricacies involved with flexible space management. In the case of an acquisition, the flex operator gets a large financial payout for years

AWA, states in a Guardian article: “HSBC is showing foresight by using

of hard work and the prestige of Flexible office space offers

being linked with what is often a

the move to hybrid working to allow

businesses multiple benefits,

it to have a smaller, greener, more

including short-term leases and

flexible headquarters that is more

the ability to scale up or down as

The do-it-yourself model is a

convenient for employees.”

huge corporation acquiring them.

•

DIY model

needed. By having more options

great way for landlords to get into

The traditional office is not

available for flexible workspaces and

the industry and profit directly

dead; it’s evolving. Real estate has

hybrid working, you can entice both

without a flex space operator

traditionally been driven by asset

businesses and workers back into

entering their building. Expertise

class and the industry has built its

the office.

and advising is still required,

6 | The back-to-school edit 2023

MONKEY BUSINESS IMAGES | SHUTTERSTOCK

Sponsored by

particularly with workspace technology, offerings, branding and day-to-day operations. But as we re-enter the workplace without standard 40-hour weeks in a centralised office, the chance of a greater return is lowered.

•

REAL ESTATE RUNS ON YARDI Do more with innovative property management software and services for any size business, in every real estate market.

solutions to facilitate day-to-day operations and IT infrastructure.

Investing in a unified solution will streamline operations, ease the burden on staff and provide a better member experience overall.

Lease model

Make the move to flex with Yardi

For operators who don’t own the

The Yardi Kube Suite provides

asset, attaining a building through

Getting started with flex

one platform, including a member

a traditional lease is a great

With many options to explore, there

app, for everything from member

way to create an independent

are risks and rewards to each of

management, meeting room

community of co-workers who

these models for those seeking

bookings and access control to

can network with each other.

to expand into flex. But each of

accounting, security, maintenance,

Operators can either seek to

these models can be implemented

IT management and procurement.

establish their brand in thriving

successfully if done with the right

It helps simplify daily operations for

urban communities where there

expertise behind you.

coworking locations and flexible workspaces.

is consistent demand for space

Introducing flexible space into

or in underserved areas where

your portfolio improves brand value

Members want a simple and

there is potential to build a brand-

and attracts a more diverse tenant

easy experience, and with Yardi Kube,

new community for members.

base. Flexible components within a

you and your members can benefit

Operators that take on this model

traditional space not only provides an

from a cloud-based, all-in-one

will need multiple revenue

increase in revenue per square foot,

solution designed for flex space

streams to compensate for high

but also more options for privacy and

management.

turnover rates. And with long

hybrid work to draw employees.

See how you can automate your

multi-year leases, selling short

Once your flex space strategy is

flexible memberships, margins

established, the next step is to select

space with Yardi’s flexible workspace

will be tight.

the right technology and software

solution.

BEINFORMED | 7

The ‘hotelification’ of office space Emerging technology is enabling offices to evolve into experience-led environments where employees actually want to spend their time others see an opportunity. It has Dan Drogman, founder, Smart Spaces

COVID-19 had far-reaching

Technology sits at the core of the

become increasingly apparent that the

evolving office environment. Building

fluorescently lit, barren workspaces we

and office apps are seeing an increased

once knew are not going to cut it. It has

uptake, helping businesses unite a

become the prerogative of a company

number of isolated features into one

to entice its workforce back.

place. Whether that’s booking meeting

consequences that can still be felt

Enter the ‘hotelification’ of the

rooms at a click, ordering lunch to

in all corners of society. One such

office. This refers to the lateral move

your desk, reserving a space on a

remnant of the pandemic’s aftermath

many buildings are taking to portray

workshop or even finding the closest

is the work-from-home culture that

their office spaces as a more enticing

available electric vehicle charging point

has gripped the nation’s workers.

– everything an employee needs is in

Workers were asked to set up a home

one place, seamlessly enhancing the

office, battle disruptive pets and have

office experience.

conference calls from the kitchen for years. But once offices opened up again, it brought a reluctance to return from a workforce that appreciated the convenience of a home office.

Whether it’s the draw of not facing the morning commute, extra time to

The focus on experience is welcome. Offices are transforming into more connected, efficient and enjoyable places to be

visit the gym of an evening or the home

Tech shift Moreover, this embracing of emerging technology means the built environment is beginning to catch up in an area it has often been slow to embrace. Often, the property sector has been deemed to be a slow adopter

comforts that can’t be found in an office

and overall experiential environment

of technology. However, the needle is

environment, the nation collectively

to be in. The best hotels put a lot of

starting to shift. Let’s consider Apple

concluded that five days a week in the

investment and attention into the guest

Wallet and smartphone integrations.

office shouldn’t be mandatory.

experience. This covers everything

We tap our phones to get through the

from the aesthetics to the amenities

barriers on the Underground and we

for building owners and operators.

and workshops on site, from the check-

add our boarding passes and concert

With office rent being one of the

in process to the functionality of their

tickets to our mobile wallet; yet when

biggest costs a company has on its

own digital services.

accessing buildings we’ve been relying

However, this caused problems

balance sheet, a disconnect between

The focus on the office experience

on fobs and physical cards. This isn’t

businesses and their employees began

is a welcome one. Now, buildings are

just inefficient – it also creates security

to form. No senior management team

transforming into more connected,

concerns when workers leave or are

wants to force employees back to the

efficient and enjoyable places to be.

reassigned to a new office.

office if they don’t want to be there. Yet,

There may be yoga at lunchtime,

they can’t watch on as an empty office

wellness initiatives on site, offers from

can be integrated into mobile wallets.

space haemorrhages money.

local businesses or an enhanced level of

Couple this with a building’s integrated

convenience for those who need it most.

app and we see an experience where

Where some see a problem, 8 | The back-to-school edit 2023

Today, smart building access cards

Sponsored by

a worker merely needs to tap their phone to enter a building, at the same time calling an elevator via the app, meaning by the time they reach the lift it’s there waiting for them and primed to take them to the desired floor.

Sustainability goals This doesn’t just improve efficiencies for the end user; it also provides a better understanding of how buildings are being used. Embracing smart technology in the workplace enables building managers and occupiers to truly understand their workforce. It also helps to drive firms towards their sustainability goals.

If certain areas of the office aren’t in use, lighting and HVAC systems can be turned off, meaning energy consumption is reduced. With a large proportion of a building’s carbon footprint coming from its energy consumption, this is a welcome relief and support towards the net zero ambitions of many building managers.

We all understand the need to become more sustainable with our daily lives. Employees don’t just want, but expect, their company to have ABOUT SMART SPACES HVAC, lights and IoT sensors to

steps towards building a net zero office

accredited and award-winning

provide integrated controls and

space, businesses are encouraging

smart building operating system.

reporting via a single pane of

their workforce back.

Its cloud-hosted Smart Building

glass dashboard. The provision

All in all, the hotelification of the

Platform powers more than 60m

of interactive 3D modelling and

office isn’t about being waited on hand

sq ft of commercial real estate.

a workplace app for the building

and foot while employees respond

The world’s leading real

community ensures a world-class

to emails. It’s about the holistic office

smart building experience.

experience. It’s about putting people

estate and occupier brands utilise Smart Spaces technology across a

Smart Spaces continually

at the centre of their workspace.

portfolio of alpha-class buildings

invests in R&D and innovation, it is

Encouraging connectivity, enabling

in prime global locations. The

bridging the physical and digital

efficiencies and building a closer

software is currently in 26

and is the world’s leading white-

community all play a role here.

countries and growing, it scales

label Smart Building employee

Working from home isn’t

with your organisation’s needs

engagement App. Functionality

likely to go away, but with the right

and is compatible with all

includes live meeting room and

environment, a good balance will be

major languages.

desk booking with community,

struck that works for both businesses

communications, smart controls,

and employees. With this evolution of

Platinum, Smart Spaces connect

facility management tools and

what it means to work in an office, we

your access control, lifts,

digital twins.

may even reach a stage where people

Rated to Smart Score

are excited about going to work.

BEINFORMED | 9

ZEPHYR_P | SHUTTERSTOCK

eco-friendly policies in place. By taking

Smart Spaces is the multi-

Working together Not only are high-quality offices good for businesses and their employees, they are a key component in the regeneration of our towns and cities

Paul Eden, co-founder, Regal London

around the vision of creating 20

to work, despite the considerable

regeneration projects based on

number of global corporates that

the revival of King’s Cross. You may

already call it home. That is, in part,

question how realistic this ambition

why the council has been such a

is, given the unique circumstances

firm supporter of Regal London’s The

THE more things change, the more

of the regeneration of King’s Cross

Clarendon Works development, a

they stay the same. Despite the

– not to mention its prime central

grade-A, highly sustainable office

radical changes in ways of working

London location. Nevertheless, what

that we are developing in the centre

following the pandemic and bold

King’s Cross undoubtedly shows

of the town.

pronouncements about the ‘death of

is that successful regeneration

the office’, the fact remains that the

requires a true mix of uses, including

Brown MacKenna, The Clarendon

workplace remains as vital as ever to

workspaces.

Works is targeting BREEAM

Designed by architect Fraser

businesses. A recent spate of large

‘Excellent’, EPC ‘A’ and WELL

companies announcing – somewhat

‘Platinum’ rankings, having already

belatedly – tighter requirements

achieved Active Score ‘Platinum’ and

around staff attending the office for at least part of the week is just the latest evidence of the workplace’s ongoing relevance and the recognition that only working from home just isn’t working.

Knitting ‘live’ and ‘work’ together must be at the heart of plans to regenerate places

This is not only a positive thing for business – it remains my view

WiredScore ‘Platinum’.

It is therefore on a par with the very best central London offices (without the rental price tag) and is exactly the kind of scheme that our towns and cities across the UK need. Why? Because good offices

Offices create a thriving all-day

elevate our towns and cities to

that having staff together in person

community, which supports small

another level – particularly when

in a workplace is far and away better

local businesses and attracts more

they are part of a mix of uses, which

than remote working – but it is also

activity, adding to the sense of a place

is why right next to The Clarendon

unquestionably good for the vitality of

where people are proud to say they

Works we are developing The

our towns and cities.

work. That’s what we need to emulate

Clarendon, providing 168 homes,

If the UK is to spread prosperity

in town centres. Create the right mix

with a range of amenities and high-

across the country, the so-called

of uses, including high-quality offices,

quality public realm.

levelling-up agenda, the workplace

and much else falls into place.

must be at the very heart of that

Knitting ‘live’ and ‘work’ together in this way must be at the heart of

conversation. There is no path to

Case in point: Watford

prosperity for the UK’s towns and

Take Watford, for example, which

cities – whether that’s Bristol or

is just a 15-minute train ride from

The green imperative

Birstall, Worcester or Watford –

Euston, just next to King’s Cross. The

There is also an environmental

without understanding the important

town is undergoing an ambitious

imperative for new offices to be at the

role high-quality offices play in driving

regeneration led by the council and

heart of the regeneration of towns

economic activity and shaping places.

plans to regenerate places.

is a great place to live – it’s ranked in

and cities. According to analysis from

Much of the government’s

the top three in the UK Vitality Index.

Carter Jonas published in July, 17%

proposals for levelling up revolve

But it’s often overlooked as a place

of UK office space sits within EPC

10 | The back-to-school edit 2023

Sponsored by

of offices from ‘brown’ to ‘green’ is more advanced.

Bringing the office closer to home Ultimately, we believe that those who think the office is dead couldn’t be more wrong. The reality is far more nuanced, with data showing most businesses are adopting various forms of hybrid working, with staff in the office for the greater part of the week.

This seems to be more pronounced outside London, where commuting times are shorter. Analysis of Google data from Lambert Smith Hampton (LSH), our joint agent with Bray Fox Smith on The Clarendon Works, suggests that workplace attendance in regional cities has been less affected by Covid. According to LSH, data shows workplace visits across the UK in October 2022 were around 20% lower than the prepandemic baseline, with major regional cities a little below this and those in central London more than 30% down.

As I’ve written for BE News previously, this provides a great Regal London is the privately owned mixed-use developer behind The

opportunity for towns and non-

Clarendon Works (pictured), a grade-A office scheme in Watford.

traditional work locations, where

Regal London is exploring how real estate is changing – and

offices that are located closer to

changing society with it – for the better in its new podcast series,

where people actually live are able

On Another Level. To find out more, visit The Clarendon Works’

to attract businesses that are keen

website and keep an eye out for the first episodes coming soon:

to reduce commuting times for their

theclarendonworks.co.uk

staff. But these offices still need to provide employees with places that they want to be, offering them great

bands ‘F’ and ‘G’, and is therefore

Instead, we must either refurbish

places to work, with all the amenities

legally unlettable unless remedial

the buildings to bring them up to

and add-ons that you would expect

action is taken. With minimum energy

modern standards or, when that

from a central London office – which

efficiency standards set to get tighter

is not viable, create new grade-A

is precisely what we are offering with

– rightly – over the next few years,

spaces with excellent environmental

The Clarendon Works in Watford.

vast swathes of the UK’s commercial

credentials on a par with those too

real estate are at risk of obsolescence.

frequently reserved for London and

creating new prime offices as part

the ‘big six’. Otherwise, particularly as

of a genuine mix of uses remains as

to repurpose all of it into residential

occupiers’ requirements get higher in

important as ever in driving prosperity

(with the government currently

order to meet their stakeholders’ own

by drawing and keeping employers

proposing the expansion of permitted

ESG demands, we’ll see an exodus

– and therefore enabling local

development rights) or to abandon it,

of businesses from our towns to

residents to stay closer to home, but in

leaving scars on the high street.

central cities where the conversion

the office. That’s what I call a win-win.

The answer to this can’t simply be

While it’s only part of the answer,

BEINFORMED | 11

The hybrid revolution Hybrid working has changed the landscape of work forever, and the growing demand for flexible workspaces has created a golden opportunity for building owners and developers

OVER the past few years, there

is more than just a perk. IWG research

Many businesses see the economic

has been a complete shift in our

shows that 83% of human resource

advantages of downsizing city centre

work landscape. Thanks to rapid

professionals believe that the hybrid

headquarters.

advancements in technology,

model significantly improves the

businesses are embracing the hybrid

health and wellbeing of their teams,

leases for more flexible spaces,

model, empowering their employees

both mentally and physically.

companies can adapt more quickly

By trading long-term office

to work how and where they want.

This is largely attributed to the

to changing needs and conditions. In

Now, they can seamlessly combine

elimination of the daily commute,

fact, according to research firm Global

working from local workspaces in

giving employees more time with

Workplace Analytics, this shift can

their community, working from home

family and friends and freeing them

result in average annual savings of

and making occasional trips to the

from the constraints of a single, often

over $11,000 per employee.

company’s main office.

city-centre-based headquarters.

These are among the reasons

These benefits have made hybrid

the flexible workspace sector is one

As Mark Dixon, founder and chief executive of IWG, the world’s largest

of the most exciting growth markets

provider of flexible workspaces and

in the world, set to expand 600% by

hybrid work solutions, observes: “In

2030. In that same period, real estate

years to come, the hybrid revolution will be recognised as every bit as important as all of the biggest previous innovations that have shaped the world of work.”

Stats show this hybrid model is only gathering momentum. It is

Businesses are embracing the hybrid model, empowering their employees to work how and where they want

estimated that in the next five years,

expert JLL predicts that 30% of all office space will evolve into hybrid workspace.

Capitalise on the hybrid shift Given these projections and the undeniable momentum of the hybrid model, it’s clear that for

the percentage of professional

those in commercial real estate, the

employees working this way will pass

work indispensable; in fact, half of all

opportunity to capitalise has never

50%. Meanwhile, 88% of companies

professionals would rather quit than

been more pressing.

are planning a full shift to flexible

revert to the traditional nine-to-five

working and the majority of the

office routine.

world’s biggest companies are

As businesses evolve with the hybrid model, there’s an urgent need for flexible workspaces, which

already doing so – in fact, 83% of

Productivity boost

presents a golden opportunity for

Fortune 500 companies currently use

But hybrid isn’t just about wellbeing

building owners, investors and

IWG workspaces.

– it supercharges productivity, too.

developers. In the UK, IWG has seen

The UK is at the heart of this

Four in five workers surveyed by IWG

strong demand for such spaces,

enduring change. And it’s creating

say they are more productive since

particularly outside city limits in

a wealth of opportunities for the

switching to the varied routine of

areas close to employees’ homes,

country’s building owners, investors

hybrid working.

where demand for IWG’s workspaces

and developers. In Dixon’s words:

This uptick in productivity,

grew by 36% in 2022 – a trend that is

“Hybrid is changing the world of

combined with the potential for

reflected across its global markets.

commercial real estate forever.”

reduced overheads, makes the

Dixon explains: “Now that ties

For the British workforce, flexibility 12 | The back-to-school edit 2023

hybrid model financially appealing.

to a single workplace have been

EZRA BAILEY | GETTY IMAGES

Sponsored by

loosened, employees are seizing the

traditional long-term office leases.

opportunity to move to places where

The hybrid model has

With 3,500+ locations in 120

their quality of life is improved, thanks

dramatically reshaped our

countries worldwide, IWG is

to better amenities, proximity to family

professional lives, and the availability

the undisputed global leader

and friends and an all-round better

of high-quality flexible workspaces is

in flexible workspaces. Under

environment.”

the cornerstone of this transformation.

our four main operating

As demand for flexspace continues

brands, we have a network

Partner of choice

to rapidly accelerate, IWG is actively

that is five times the size of

With IWG’s scale, network of

seeking to expand its network across

our nearest competitor. So if

market-leading brands and diverse

the UK and beyond in partnership with

anyone knows how to make a

partnership models, building owners

property owners and investors of all

partnership a success, it’s us.

can transform empty spaces into

kinds, who can leverage the world’s

valuable assets and future-proof their

largest hybrid working platform to

portfolios. This is why the workspace

generate superior returns.

giant is the partner of choice for

Together, there’s immense

corporations, building owners and

potential for success and growth. As

investors looking to re-evaluate

Dixon puts it: “This is the kind of

their global real estate strategies

opportunity that only comes once in

and to safeguard their portfolios for

a lifetime.”

the future.

• We have eight million+ customers across 120 countries • We receive more than one million enquiries annually • We are located in every major city, town and transport hub, globally

Dive deeper into the world of

• We have four global brands

industry, IWG has consistently

flexible workspaces. Click here

to match every work style,

proven that flexible workspaces

to uncover the full potential of

business and price

can deliver returns comparable to

partnering with IWG.

With three decades in the

BEINFORMED | 13

PHOTOMAVENSTOCK | SHUTTERSTOCK

A balancing act For most people, striking a balance between remote and office working is essential – which is why many businesses are adapting to the hybrid model

Jane Sartin, executive director, Flexible Space Association

often home. That’s not to say remote

you’re working from around on a USB

working is a new phenomenon born

stick are long gone, as cloud storage

out of the pandemic.

brings the benefits of being able to

Having worked in office-based

access everything needed wherever

roles throughout my career, I’ve had

you have a device and can get online.

THERE have been a multitude of

an element of working from home

It’s also worth noting that the

headlines either pronouncing the

for maybe 20 years, which I think is a

implication in many headlines that

death of the office or that companies

common experience for many. When

everyone is now working from home

are requiring the full-scale return of

I need to, I’m well adapted to getting

for at least some of their time is of

staff to desks in corporate HQs. Read

work done on trains, in coffee shops,

course also a long way from reality,

beyond the first couple of paragraphs,

even from park benches on the way to

and if they’d like that flexibility it must

and the situation is usually much

meetings – I’d recommend London’s

be a little galling for those it simply

more nuanced.

St James’s Park for the opportunity to

can’t apply to. There remains an

see the pelicans.

abundance of roles that are simply

Hybrid working has firmly taken hold for most people who spend a

What has changed over that time

impossible to do from home – from

significant amount of time sitting at

and made it a more prevalent way

retail and hospitality to manufacturing,

a keyboard, with time split between

of working is, of course, technology

healthcare and construction work.

the office and somewhere else,

developments. The days of taking files

14 | The back-to-school edit 2023

For those whose roles do afford

Sponsored by

them the ability to work wherever they

Whereas once you would see

have a mobile phone or laptop, hybrid

rows of desks taking up a large open-

working is certainly affording a lot

plan office, it is now commonplace

are enabling people to make real

more freedom. It is cutting down on

to see space given over to meeting

improvements to their work-life

commuting time, and allowing some

tables, sofas and even the occasional

balance that goes beyond being able

flexibility in the working week to more

table-tennis table.

to pick children up from school or put

easily manage personal commitments alongside work.

There is also a growing

attendees to fully participate.

Hybrid working arrangements

the washing out. Clockwise Offices

expectation from staff that if they are

in Exeter has seen a growing interest

making the trip to the office, they are

in its Day Passes for people who are

or analysing information, working

provided with a nice environment,

visiting the area for the weekend

without the interruptions of office life

furniture and facilities to help them

and want to work on the Friday

can also be hugely beneficial.

with their tasks and, of course, high-

and Monday.

If you’re writing a detailed report

speed Wi-Fi.

Devon County Council, which

Office still important

supports a network of co-working

However, it’s become increasingly

hubs, picked up on this trend and

clear that for most people the office

for the past few years has been

continues to play an important role, and getting the balance between remote and office roles is embedding hybrid working in most organisations.

The opportunity to talk with colleagues face to face is always

Hybrid arrangements are enabling people to make real improvements to their work-life balance

going to have advantages over stilted

advertising in the Visit Devon magazine. Co-working space is clearly enabling tourists to maximise their time away by working locally in a professional environment.

There has been much said about large companies wanting their staff

conversations on screens. Meetings

Walking into a workspace run by

back together in offices. The likes of

online require the discipline of each

companies such as The Office Group

Amazon, Citibank, Google and even

participant waiting their turn to speak,

or Orega can feel akin to arriving at a

Zoom have hit the headlines with the

and their points perhaps no longer

high-end hotel, with stylish furniture,

implication that they are demanding

feeling relevant by the time they do.

an abundance of plants and great

full-time return to the office. In most

Meetings round a table allow people

catering facilities on hand. People’s

cases, the reality is that they are

to interject more easily, and a free-

expectations of offices are changing.

expecting staff to be office based

flowing conversation to take place.

If you are new to a job, the

two or three days a week, with the Appealing amenities

remainder of the time remote working,

opportunity to learn from colleagues

If you’re going to make the journey

often from home.

working around you is a really

to the office, knowing that it can

important part of understanding the

double up as a gym visit can appeal to

tension between working from home

wider organisation. Getting to know

many, which has led to many flexible

or an office; there is a place for both. A

people as you make a cup of coffee

workspaces offering onsite gyms.

common-sense approach from both

in the shared kitchen or wait for a

BE Offices in Birmingham even has a

employers and staff can offer benefits

meeting to start is part of what builds

golf simulator in their basement. Staff

for everyone.

strong teams.

might be encouraged into the offices

There doesn’t need to be a

With all these things in mind,

by the yoga classes or free breakfasts

workspaces are adapting to the hybrid

provided. Good coffee on tap goes

The Flexible Space

working model.

without saying, and might even stretch

Association is the UK’s trade

to Prosecco and beer.

association for the flexible

How office space is used is

workspace industry. Its

changing. People are more likely to be

Changes are also needed to

spending the time they’re in the office

take account of people’s hybrid

members comprise flexible

collaborating with colleagues than

working arrangements not always

workspace operators of all

sitting at their desk all day, which they

synchronising. Meeting rooms

sizes, as well as providers of

could be doing at home and skipping

are increasingly kitted out with

services to the sector.

the commute.

technology to enable remote BEINFORMED | 15

Sink or swim For now it looks like the hybrid three-day working week is here to stay, so we need to be creative, focus on the occupier experience and embrace technology

Guy Windsor-Lewis, chief executive of occupier experience platform Locale

– did it scale too quickly and hype

engagement – because it’s likely

itself up too much? An interesting

you will have almost empty spaces

observation from recent media

on Mondays and Fridays – would be

coverage on WeWork points out that

foolish. The competition is steep, and

its struggles are due to members

we live in an era where occupier needs

THE pandemic certainly altered

cancelling their agreements and

and preferences are always evolving.

the way we work forever. While

leaving, so does it not have the right

Understanding these changes and

remote working ended up a success,

retention strategy? Is the pricing not

keeping on the pulse is essential.

companies now face the struggle of

flexible enough? Or has WeWork’s

attracting employees back to the office.

unique selling point of beer on tap

has never been higher. Property

Furthermore, many want to retain the

become stale?

management teams are being pushed

practicalities of remote work and are

The need for operational efficiency

to do more with less, which is where

opting for a hybrid arrangement, only

Focusing on occupier experience

technology and automation come

returning three days a week, leaving

As humans, we love a sense of

in – a seamless system like Locale

swathes of workplaces deserted on

belonging and offices should be

has been proven to save hours per

Mondays and Fridays.

just that – a place to belong. We

day across an array of property management functions.

With more companies adopting

value the opportunity to collaborate,

hybrid work as the modus operandi to

socialise, be heard and be informed.

both attract and retain the best talent,

Delivering a best-in-class occupier

Report in July showed that these

it is now widely accepted that offices

experience should be at the heart of

time-saving efficiencies had the benefit

will no longer be full five days a week.

any building success strategy. It’s not

of increasing customer satisfaction,

Our latest PropTech Perspectives

Notably, tech firms such as Google,

reducing operational risks and

Meta, Dell and Amazon are enforcing

unlocking data-driven insights. Overall,

stricter measures to ensure employees

a typical building digitising its occupier-

are in the office at least three days a week. The key question then is: how does the real estate sector design and adapt for this new era of working?

Flexibility is the future

As humans, we love a sense of belonging and offices should be just that – a place to belong

Many would argue that flexible

facing processes can save more than 100 hours per week in staff time, equivalent to over £100,000 per year for a single building.

It’s high time landlords and managers stop simply ticking boxes when it comes to occupier experience.

office space is the future. Flex space

just about pop-up events, though – it

What will ensure that those three

providers, once a draw for SMEs, are

is about creating value by streamlining

days are compelling enough that

now enjoying demand from larger

operational efficiencies, orchestrating

occupiers will be committed in coming

corporates, especially in smaller towns

curated events and ensuring all

in? More onsite amenities? Curated

and cities. These providers also have

communication points with occupiers

experiences? Onsite childcare?

the ability to create a unique working

are covered; and that’s where bespoke

Last-mile logistics? For offices to be

culture and are often in great locations.

content streaming via digital signage is

a success, they need to be viewed

proven to be extremely effective.

as destinations. Landlords need to

But why is WeWork struggling?

Perhaps the starting point is the business and its high operating costs 16 | The back-to-school edit 2023

Those considering cutting costs when it comes to experience and

creatively rethink the way space is used and managed, as well its

Sponsored by

both quantitative through a platform or qualitative through targeted surveys and polls that can enable building teams to understand the state of the buildings and portfolios in real time. But effectively interpreting it in a timely manner is the key to its success. It ensures offices can be agile, adapting and pivoting according to the sentiment of its occupiers.

From an operational perspective, the data can also help diversify spaces.

Unused or even underused spaces can be maximised by leasing to smaller businesses or local organisations that Locale empowers the real estate industry to streamline building

may benefit from high-quality space.

operations and enhance occupier experiences, fostering vibrant and

Interestingly, we have seen that

connected communities. Currently, Locale’s solutions span operational

at King’s Cross in London where some

real estate, curated occupier experiences and bespoke content

of the office space was used as an

streaming.

afterschool homework club for local

Founded in 2005 by chief executive Guy Windsor-Lewis, Locale

primary schools. Not only did pupils

is an award-winning, 30-strong independent business deploying our

benefit from safe, good-quality space,

wide range of solutions across 80m sq ft of residential, commercial

but businesses in the same building

and mixed-use property across the UK – unlike any other player in this

also offered their help to tutor some of

space. For more information, please visit: www.locale.co.uk

the students.

Whil it seems we are settling for the hybrid three-day week to be largely

connection to the local community;

community surrounding it. The benefit

the norm, more or less, there is no

technology should not be an add-

here is twofold. Firstly, this must form

guarantee this is forever. And trends

on or an afterthought. It needs to be

a part of any successful destination

within an office can vary depending

weaved through every touch point in

strategy where occupiers can feel part

on location, connectivity, mix of

the customer journey – from relevant

of the area where they can explore

occupiers and demographic. So,

information via content streaming and

nearby amenities – also supporting

listening to occupiers and evaluating

local services to interacting with the

the hyperlocal economy. Secondly, it

the data will increasingly be the crux of

building team and services.

means communities can also benefit.

key decisions.

Furthermore, it’s not enough to

They form a unique connection with

simply have the technology – it is every

the building and its occupiers, creating

A movable feast

stakeholder’s responsibility to use it

a truly integrated community.

Cultivating an office for hybrid

At Locale, our curated experiences

working is no mean feat and is a

team and bespoke content streaming

movable feast. Worker trends are still

Position yourself in the community

service can bridge this gap between

settling and, combined with a clash

The pandemic was a stark reminder

a building and the nearby community.

between generations and shifting

of how important local community

While we curate hyperlocal offers and

working culture, the three-day office

was to us and this appreciation of our

promotions, we also help promote

is something we have to adapt to now

fellow human beings continues to gain

local charities, heroes, purpose-driven

and probably in the months and years

momentum. For many, it was a lifeline

organisations and initiatives.

to come.

to receiving food, having a conversation

For now, we have to be creative,

and supporting fledgling businesses.

Interpreting the data

ensure we focus on the occupier and

It is why any occupier strategy should

Technology is a crucial tool to

maximise technology. It’s a challenge I

not just focus on the building but the

accumulate data. This data can be

know we can overcome.

BEINFORMED | 17

OLENA YAKOBCHUK | SHUTTERSTOCK

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18 | The summer edition 2023