Embracing Flexibility: Leading Landlords Guide to Thriving in the Era of Managed Office Spaces
Client showcase
#
Real Estate
In the fast-paced world of commercial real estate, 'flex' real estate is not just a buzzword; it's a game changer. It's like yoga for buildings - flexible, adaptable, and surprisingly good for your health (financial health, that is). This concept signifies spaces that bend and stretch to meet the ever-changing needs of modern businesses. It's about lease flexibility, space agility, and offering a smorgasbord of amenities. Crucially, this shift reflects where the underlying demand from tenants is moving, as they increasingly seek 'plug and play' workspaces that can adapt to their evolving requirements. The insights in this article are gleaned from our extensive collaboration with leading landlord partners across Europe’s largest cities, capturing guiding principles on how to succeed in this tenant-driven transformation.
Embracing Flexibility: Leading Landlords Guide to Thriving in the Era of Managed Office Spaces
Client showcase
#
Real Estate
The insights in this article are gleaned from our extensive collaboration with leading landlord partners across Europe’s largest cities, capturing guiding principles on how to succeed in this tenant-driven transformation.
Embracing Flexibility: Leading Landlords Guide to Thriving in the Era of Managed Office Spaces
In the fast-paced world of commercial real estate, 'flex' real estate is not just a buzzword; it's a game changer. It's like yoga for buildings - flexible, adaptable, and surprisingly good for your health (financial health, that is). This concept signifies spaces that bend and stretch to meet the ever-changing needs of modern businesses. It's about lease flexibility, space agility, and offering a smorgasbord of amenities. Crucially, this shift reflects where the underlying demand from tenants is moving, as they increasingly seek 'plug and play' workspaces that can adapt to their evolving requirements. The insights in this article are gleaned from our extensive collaboration with leading landlord partners across Europe’s largest cities, capturing guiding principles on how to succeed in this tenant-driven transformation.
SCALE UP YOUR BUSINESS, DOWNSIZE, PIVOT
Regardless of why you're moving, a new office offers the opportunity to create a work environment that fosters creativity, well-being, and productivity. One that better reflects your company’s core values and strengthens your brand. But to set your business up for success—both today and in five years—you need to make the right choices.
The moving process itself requires careful planning and can feel overwhelming. But don’t worry. Like any process, it can be broken down into a series of simple steps. We’ve put together a 10-step checklist to help make your move both easier and more enjoyable.
See the move as an opportunity – not just a necessity!
Technology advancements, market changes, and future business plans—since you’re considering a move, you already know that your company’s needs are evolving. It’s important to think about what functions your new office should accommodate: open workspaces, quiet rooms, meeting rooms, kitchens, and social areas. But also, think long-term.
Can the space be easily reconfigured?
Will a meeting room today need to become an open workspace in a few years?
Location is another crucial factor—along with budget. The office’s area can impact both your brand image and attractiveness as an employer. A well-connected location with good transport links is always a plus.
2. FIND THE RIGHT OFFICE SPACE: USE BOT LOGIC AND EMOTION
Your new office should satisfy both the head and the heart. Practical factors like size, budget, and lease terms are essential—but it should also feel like a place where your team can thrive.
To navigate the market, you can work with a real estate agent who represents property owners. However, searching on your own often gives you better control over available options. Use websites like objektvision.se and lokalguiden.se, or visit property companies’ websites directly. There are also platforms that specialize in flexible office and co-working solutions.
3. REVIEW YOUR CURRENT CONTRACTS
Before booking viewings, review your existing agreements.
How long are you committed to your current lease?
What services (e.g. alars, internet, printers, coffee machines) are tied to the office?
It’s also important to set a realistic timeline for your move—establishing clear deadlines for when you need to be in the new space.
4. MASTER THE OFFICE VIEWINGS
Ask lots of questions! When evaluating an office, it’s not just about square meters, but also how efficiently the space can be used.
Are there wasted areas, like long hallways? Is the layout flexible for future needs?
Take as much documentation as possible. In addition to floor plans, photos and videos can help when discussing options with colleagues.
5. SECURE THE INFRASTRUCTURE
At this stage, you should have signed a contract and can start detailed planning.
Check what’s included in the rent. Discuss with the landlord how electrical outlets, networks, and security systems should be positioned.
6. SIMPLIFY THE FURNISHING DECISIONS
Now it’s time to think about furniture—this should be a fun part of the process! Instead of buying expensive furniture that may not suit future needs, consider a subscription model.
With NORNORM’s furniture subscription, for about the price of a cup of coffee per day per employee, you get fully furnished, flexible workspaces.
Need to convert a meeting room into workstations? No problem. No need for certain furniture anymore? They get restored and reused elsewhere.
NORNORM furnishes your dream office in just six weeks—from design to installation.
✔️ Send a floor plan → Receive a 3D design proposal within 48 hours. ✔️ No large investments. No hassle. No dealing with multiple suppliers.
7. CUSTOMIZE YOUR OFFICE TO REFLECT YOUR BRAND
Your office is a showcase for your brand. To create an environment that truly represents your company, think beyond expensive furniture.
✔️ Wall colors, lighting, signage, textiles, and decorations can make a huge difference. ✔️ Plants not only enhance aesthetics but also reduce stress and boost productivity.
As they say: "The devil is in the details."
8. BOOK MOVERS, ENAGE EMPLOYEES AND INFORM STAKEHOLDERS
Next, hire a moving company. Check references and compare quotes. Decide if you’ll pack yourselves or let the movers handle it. Also, consider:
Do you need moving boxes? Should employees work from home during the transition?
Communicate with your team! A move affects everyone. Make sure they understand why you’re moving and get them excited about the new space.
✔️ Organize office tours before moving to help employees feel involved. ✔️ Inform customers and service providers about your new address.
9. MOVE IN!
Congratulations! You’ve reached the finish line. Take a deep breath and enjoy the moment.
(And remember—it’s always more fun to unpack than to pack!)
If you've chosen a flexible office furniture solution, you can be even more relaxed, knowing your setup can evolve as your needs change.
10. CELEBRATE! (AND ADJUST IF NEEDED)
Now for the best part—celebrate! Host a proper office-warming party and showcase your new space to employees, clients, and partners.
(And if you’ve subscribed to NORNORM, you’ll never be stuck with a fixed office design—you can continuously adapt your workspace at no extra cost.)
Embracing Flexibility: Leading Landlords Guide to Thriving in the Era of Managed Office Spaces
In the fast-paced world of commercial real estate, 'flex' real estate is not just a buzzword; it's a game changer. It's like yoga for buildings - flexible, adaptable, and surprisingly good for your health (financial health, that is). This concept signifies spaces that bend and stretch to meet the ever-changing needs of modern businesses. It's about lease flexibility, space agility, and offering a smorgasbord of amenities. Crucially, this shift reflects where the underlying demand from tenants is moving, as they increasingly seek 'plug and play' workspaces that can adapt to their evolving requirements. The insights in this article are gleaned from our extensive collaboration with leading landlord partners across Europe’s largest cities, capturing guiding principles on how to succeed in this tenant-driven transformation.
Impact on Landlords and Investors
Decoding the Shift to Flexible Workspaces
The shift towards flexible workspaces, also known as 'real estate flex,' resembles a chameleon, constantly adapting to the changing colours of business needs. Managed offices are at the heart of this transformation. They're like the Swiss Army knife of office spaces - equipped with everything a business could need, from sleek furniture to high-speed Wi-Fi. These spaces are not just about a roof and four walls; they're a 'plug and play' solution that makes moving in as easy as making a cup of coffee.
The Appeal to Landlords
Managed offices are increasingly attractive to landlords for their ability to scale costs and services to tenant needs, significantly reducing the risk of uncovered fixed costs compared to fluctuating co-working spaces. This model offers a more predictable revenue stream, with the added advantage of being able to charge a premium, thus enhancing net income. Managed offices also tend to have lower vacancy downtime, as their ready-to-use, fully-serviced nature appeals to tenants seeking convenience and flexibility. This results in financial stability for landlords and potential for increased profitability.
Transforming Traditional Spaces
Forward-thinking landlords are leveraging the trend towards flexible workspaces by transforming conventional office areas into dynamic, managed environments. This strategic shift to offering a mix of private offices, co-working areas, and communal spaces aligns with the diverse requirements of modern tenants, leading to increased occupancy rates, tenant satisfaction, and ultimately, enhanced property values.
The Bottom Line
The rise of managed office spaces is a curveball that landlords can catch and throw back with interest. By understanding this trend and adapting to it, landlords can not only safeguard against market shifts but also tap into the burgeoning demand for flexible, service-rich work environments.
Practical Advice for Landlords
Adopt a Tenant-Centric Approach
In today's dynamic real estate market, a landlord's adaptability is key. Understanding and responding to the evolving needs of modern tenants is crucial. A strategic move is to rent office furniture from NORNORM and use their subscription service. This choice allows for swift and easy customisation of spaces to align with diverse tenant preferences. More importantly, it addresses the perennial challenge of furniture inventory management. With this approach, you can effortlessly update or change the setup to suit new tenants, reducing downtime and ensuring your spaces are always ready and appealing. This not only satisfies specific tenant requirements but also simplifies the often cumbersome process of transitioning spaces between different occupants.
Invest in Technology
In the digital age, a building without smart technology is like a car without power steering – harder to manage and less enjoyable to use. Incorporate tools like OfficeRnD, which streamline everything from room bookings to billing. It's about making your building not just a space, but a smart space.
Focus on Community Building
Building community in a flexible workspace is like cultivating a garden – it requires care but blooms wonderfully. Take inspiration from places like Epicenter in Stockholm, known for hosting keynotes and learning sessions for its startup community, or Sustainable Ventures in London, which organises climate tech events. These initiatives transform buildings into buzzing hives of collaboration and innovation. This not only enhances the appeal of your property but also supports the growth and success of your tenants.
Embrace Sustainability
Sustainability in building management is like a good diet – it's not just a phase, but a lifestyle. A lifestyle that more and more tenants are looking for. Implement green initiatives such as energy-efficient lighting, water-saving fixtures, or recycling programs. Consider the example of The Edge in Amsterdam, heralded as one of the greenest buildings in the world, using LED lighting and allowing employees to control their environment via a smartphone app.
Diversify Your Portfolio
Achieve a balance between traditional leases and flexible spaces. This strategy ensures stability in your revenue streams while capitalising on the burgeoning demand for flex spaces. It’s about not putting all your eggs in one basket but diversifying to cater to a wider market.
Balancing Flexibility and Stability
Long-Term Strategy
While the market is leaning towards flexibility, it's important to maintain a strategic long-term vision. Your goal should be to create a property portfolio that aligns with your long-term investment objectives while being responsive to the evolving needs of tenants. This balance is crucial for sustainable growth and success in the real estate market.
Risk Management
Mitigate risks by diversifying your tenant base and lease durations. This strategy helps to cushion against economic fluctuations and keeps your portfolio resilient in a changing market.
The evolution towards flexible workspaces is more than a trend in commercial real estate; it's a critical shift for success. Landlords who adapt with innovation, community focus, and sustainability aren't just keeping pace; they're setting the pace, ready to capitalise on future opportunities. By embracing this new reality, they position their properties as premier destinations in a competitive market.
Nanna Gelebo (BCG) on Bridging Linear and Circular Business Models
Nanna Gelebo has been a Partner at the Boston Consulting Group (BCG) in Stockholm for 12 years, with a strong track record of driving transformative change in the retail sector on everything from strategy to implementation.
Key Insights
Nanna discusses the concept of 'cross-fertilisation' between linear and circular business models. She highlights the importance of transforming transactional customer relationships into relational ones through circular efforts, emphasising that rental and second-hand products can serve as gateways for consumers into more sustainable consumption patterns. This approach not only benefits the environment but also opens new avenues for business growth.
Takeaway
Linear business models do not have to stay linear. You can start to become more circular by gradually integrating a circular business model into your current linear one, through e.g. rental and second-hand products, building a circular set-up that suits your business specifically.
Marcus Linder (RISE) on Evaluating and Ensuring Circular Claims
Marcus Linder is the Director of Business Design at the Research Institute of Sweden (RISE). He holds a PhD in Technology Management and Economics from Chalmers University of Technology, specified in environmental research, with his research having been applied industrially in procurements by industry giants such as Volvo.
Key Insights
Marcus brings attention to the critical aspect of a product's end-of-life plan. He emphasises that being 'potentially circular' is insufficient without a concrete and, preferably legally binding, plan for product lifecycle management. This perspective is crucial for customers evaluating circular claims, pushing companies to not just promise sustainability but to embed it into their actual business practices.
Takeaway
To remain credible towards industry peers and customers, the best practice is to have a clear, communicable, and incentivised plan for your circular business model that customers can trust and rely on. It is important that customers should be able to evaluate and ensure your claim of circularity and end-of-life product plans.
Vojtech Vosecky on Being Authentic when Marketing your Circular Efforts
Vojtech Vosecky is one of the leading circular economy advocates, with experiences ranging from being the co-founder of the successful think-tank Institute of Circular Economy, working for the European Parliament, and the world-leading organisation Circle Economy. In 2022, he was also selected as one of the Top Green Voices to follow in Europe by LinkedIn.
Key Insights
Vojtech stresses the importance of being hyper-authentic in the communication of your circular business principles. For him, it’s about being bold in stating what you stand for, challenging misconceptions, and creating moments of realisation for your audience (think true “aha-moments”). His approach - educate, inspire, and agitate - is a formula that companies can use to effectively market their circular efforts. Vojtech highlights that no matter the format of your marketing, and to avoid the trap of greenwashing, be authentic and stand your ground, whilst always backing up with research. That always wins.
Takeaway
When marketing your circular or sustainable business efforts, especially on LinkedIn, use the three principles of educating, inspiring, and agitating - ideally in one go. Be authentic, use visuals, and create truly educating moments. Use facts whenever you can. However, be careful not to over-do them - and always, always, double check them.
“In the end, what is it about? It's about creating a relationship between the user and this object. I think we all have a strong link to things that are meaningful, that have been charged by accompanying our life.”
Some subtitle
In the end, what is it about? It's about creating a relationship between the user and this object. I think we all have a strong link to things that are meaningful, that have been charged by accompanying our life.
Embracing Flexibility: Leading Landlords Guide to Thriving in the Era of Managed Office Spaces
In the fast-paced world of commercial real estate, 'flex' real estate is not just a buzzword; it's a game changer. It's like yoga for buildings - flexible, adaptable, and surprisingly good for your health (financial health, that is). This concept signifies spaces that bend and stretch to meet the ever-changing needs of modern businesses. It's about lease flexibility, space agility, and offering a smorgasbord of amenities. Crucially, this shift reflects where the underlying demand from tenants is moving, as they increasingly seek 'plug and play' workspaces that can adapt to their evolving requirements. The insights in this article are gleaned from our extensive collaboration with leading landlord partners across Europe’s largest cities, capturing guiding principles on how to succeed in this tenant-driven transformation.
Impact on Landlords and Investors
Decoding the Shift to Flexible Workspaces
The shift towards flexible workspaces, also known as 'real estate flex,' resembles a chameleon, constantly adapting to the changing colours of business needs. Managed offices are at the heart of this transformation. They're like the Swiss Army knife of office spaces - equipped with everything a business could need, from sleek furniture to high-speed Wi-Fi. These spaces are not just about a roof and four walls; they're a 'plug and play' solution that makes moving in as easy as making a cup of coffee.
The Appeal to Landlords
Managed offices are increasingly attractive to landlords for their ability to scale costs and services to tenant needs, significantly reducing the risk of uncovered fixed costs compared to fluctuating co-working spaces. This model offers a more predictable revenue stream, with the added advantage of being able to charge a premium, thus enhancing net income. Managed offices also tend to have lower vacancy downtime, as their ready-to-use, fully-serviced nature appeals to tenants seeking convenience and flexibility. This results in financial stability for landlords and potential for increased profitability.
Transforming Traditional Spaces
Forward-thinking landlords are leveraging the trend towards flexible workspaces by transforming conventional office areas into dynamic, managed environments. This strategic shift to offering a mix of private offices, co-working areas, and communal spaces aligns with the diverse requirements of modern tenants, leading to increased occupancy rates, tenant satisfaction, and ultimately, enhanced property values.
The Bottom Line
The rise of managed office spaces is a curveball that landlords can catch and throw back with interest. By understanding this trend and adapting to it, landlords can not only safeguard against market shifts but also tap into the burgeoning demand for flexible, service-rich work environments.
Practical Advice for Landlords
Adopt a Tenant-Centric Approach
In today's dynamic real estate market, a landlord's adaptability is key. Understanding and responding to the evolving needs of modern tenants is crucial. A strategic move is to rent office furniture from NORNORM and use their subscription service. This choice allows for swift and easy customisation of spaces to align with diverse tenant preferences. More importantly, it addresses the perennial challenge of furniture inventory management. With this approach, you can effortlessly update or change the setup to suit new tenants, reducing downtime and ensuring your spaces are always ready and appealing. This not only satisfies specific tenant requirements but also simplifies the often cumbersome process of transitioning spaces between different occupants.
Invest in Technology
In the digital age, a building without smart technology is like a car without power steering – harder to manage and less enjoyable to use. Incorporate tools like OfficeRnD, which streamline everything from room bookings to billing. It's about making your building not just a space, but a smart space.
Focus on Community Building
Building community in a flexible workspace is like cultivating a garden – it requires care but blooms wonderfully. Take inspiration from places like Epicenter in Stockholm, known for hosting keynotes and learning sessions for its startup community, or Sustainable Ventures in London, which organises climate tech events. These initiatives transform buildings into buzzing hives of collaboration and innovation. This not only enhances the appeal of your property but also supports the growth and success of your tenants.
Embrace Sustainability
Sustainability in building management is like a good diet – it's not just a phase, but a lifestyle. A lifestyle that more and more tenants are looking for. Implement green initiatives such as energy-efficient lighting, water-saving fixtures, or recycling programs. Consider the example of The Edge in Amsterdam, heralded as one of the greenest buildings in the world, using LED lighting and allowing employees to control their environment via a smartphone app.
Diversify Your Portfolio
Achieve a balance between traditional leases and flexible spaces. This strategy ensures stability in your revenue streams while capitalising on the burgeoning demand for flex spaces. It’s about not putting all your eggs in one basket but diversifying to cater to a wider market.
Balancing Flexibility and Stability
Long-Term Strategy
While the market is leaning towards flexibility, it's important to maintain a strategic long-term vision. Your goal should be to create a property portfolio that aligns with your long-term investment objectives while being responsive to the evolving needs of tenants. This balance is crucial for sustainable growth and success in the real estate market.
Risk Management
Mitigate risks by diversifying your tenant base and lease durations. This strategy helps to cushion against economic fluctuations and keeps your portfolio resilient in a changing market.
The evolution towards flexible workspaces is more than a trend in commercial real estate; it's a critical shift for success. Landlords who adapt with innovation, community focus, and sustainability aren't just keeping pace; they're setting the pace, ready to capitalise on future opportunities. By embracing this new reality, they position their properties as premier destinations in a competitive market.
Embracing Flexibility: Leading Landlords Guide to Thriving in the Era of Managed Office Spaces
In the fast-paced world of commercial real estate, 'flex' real estate is not just a buzzword; it's a game changer. It's like yoga for buildings - flexible, adaptable, and surprisingly good for your health (financial health, that is). This concept signifies spaces that bend and stretch to meet the ever-changing needs of modern businesses. It's about lease flexibility, space agility, and offering a smorgasbord of amenities. Crucially, this shift reflects where the underlying demand from tenants is moving, as they increasingly seek 'plug and play' workspaces that can adapt to their evolving requirements. The insights in this article are gleaned from our extensive collaboration with leading landlord partners across Europe’s largest cities, capturing guiding principles on how to succeed in this tenant-driven transformation.
Impact on Landlords and Investors
Decoding the Shift to Flexible Workspaces
The shift towards flexible workspaces, also known as 'real estate flex,' resembles a chameleon, constantly adapting to the changing colours of business needs. Managed offices are at the heart of this transformation. They're like the Swiss Army knife of office spaces - equipped with everything a business could need, from sleek furniture to high-speed Wi-Fi. These spaces are not just about a roof and four walls; they're a 'plug and play' solution that makes moving in as easy as making a cup of coffee.
The Appeal to Landlords
Managed offices are increasingly attractive to landlords for their ability to scale costs and services to tenant needs, significantly reducing the risk of uncovered fixed costs compared to fluctuating co-working spaces. This model offers a more predictable revenue stream, with the added advantage of being able to charge a premium, thus enhancing net income. Managed offices also tend to have lower vacancy downtime, as their ready-to-use, fully-serviced nature appeals to tenants seeking convenience and flexibility. This results in financial stability for landlords and potential for increased profitability.
Transforming Traditional Spaces
Forward-thinking landlords are leveraging the trend towards flexible workspaces by transforming conventional office areas into dynamic, managed environments. This strategic shift to offering a mix of private offices, co-working areas, and communal spaces aligns with the diverse requirements of modern tenants, leading to increased occupancy rates, tenant satisfaction, and ultimately, enhanced property values.
The Bottom Line
The rise of managed office spaces is a curveball that landlords can catch and throw back with interest. By understanding this trend and adapting to it, landlords can not only safeguard against market shifts but also tap into the burgeoning demand for flexible, service-rich work environments.
Practical Advice for Landlords
Adopt a Tenant-Centric Approach
In today's dynamic real estate market, a landlord's adaptability is key. Understanding and responding to the evolving needs of modern tenants is crucial. A strategic move is to rent office furniture from NORNORM and use their subscription service. This choice allows for swift and easy customisation of spaces to align with diverse tenant preferences. More importantly, it addresses the perennial challenge of furniture inventory management. With this approach, you can effortlessly update or change the setup to suit new tenants, reducing downtime and ensuring your spaces are always ready and appealing. This not only satisfies specific tenant requirements but also simplifies the often cumbersome process of transitioning spaces between different occupants.
Invest in Technology
In the digital age, a building without smart technology is like a car without power steering – harder to manage and less enjoyable to use. Incorporate tools like OfficeRnD, which streamline everything from room bookings to billing. It's about making your building not just a space, but a smart space.
Focus on Community Building
Building community in a flexible workspace is like cultivating a garden – it requires care but blooms wonderfully. Take inspiration from places like Epicenter in Stockholm, known for hosting keynotes and learning sessions for its startup community, or Sustainable Ventures in London, which organises climate tech events. These initiatives transform buildings into buzzing hives of collaboration and innovation. This not only enhances the appeal of your property but also supports the growth and success of your tenants.
Embrace Sustainability
Sustainability in building management is like a good diet – it's not just a phase, but a lifestyle. A lifestyle that more and more tenants are looking for. Implement green initiatives such as energy-efficient lighting, water-saving fixtures, or recycling programs. Consider the example of The Edge in Amsterdam, heralded as one of the greenest buildings in the world, using LED lighting and allowing employees to control their environment via a smartphone app.
Diversify Your Portfolio
Achieve a balance between traditional leases and flexible spaces. This strategy ensures stability in your revenue streams while capitalising on the burgeoning demand for flex spaces. It’s about not putting all your eggs in one basket but diversifying to cater to a wider market.
Balancing Flexibility and Stability
Long-Term Strategy
While the market is leaning towards flexibility, it's important to maintain a strategic long-term vision. Your goal should be to create a property portfolio that aligns with your long-term investment objectives while being responsive to the evolving needs of tenants. This balance is crucial for sustainable growth and success in the real estate market.
Risk Management
Mitigate risks by diversifying your tenant base and lease durations. This strategy helps to cushion against economic fluctuations and keeps your portfolio resilient in a changing market.
The evolution towards flexible workspaces is more than a trend in commercial real estate; it's a critical shift for success. Landlords who adapt with innovation, community focus, and sustainability aren't just keeping pace; they're setting the pace, ready to capitalise on future opportunities. By embracing this new reality, they position their properties as premier destinations in a competitive market.
Embracing Flexibility: Leading Landlords Guide to Thriving in the Era of Managed Office Spaces
In the fast-paced world of commercial real estate, 'flex' real estate is not just a buzzword; it's a game changer. It's like yoga for buildings - flexible, adaptable, and surprisingly good for your health (financial health, that is). This concept signifies spaces that bend and stretch to meet the ever-changing needs of modern businesses. It's about lease flexibility, space agility, and offering a smorgasbord of amenities. Crucially, this shift reflects where the underlying demand from tenants is moving, as they increasingly seek 'plug and play' workspaces that can adapt to their evolving requirements. The insights in this article are gleaned from our extensive collaboration with leading landlord partners across Europe’s largest cities, capturing guiding principles on how to succeed in this tenant-driven transformation.
Impact on Landlords and Investors
Decoding the Shift to Flexible Workspaces
The shift towards flexible workspaces, also known as 'real estate flex,' resembles a chameleon, constantly adapting to the changing colours of business needs. Managed offices are at the heart of this transformation. They're like the Swiss Army knife of office spaces - equipped with everything a business could need, from sleek furniture to high-speed Wi-Fi. These spaces are not just about a roof and four walls; they're a 'plug and play' solution that makes moving in as easy as making a cup of coffee.
The Appeal to Landlords
Managed offices are increasingly attractive to landlords for their ability to scale costs and services to tenant needs, significantly reducing the risk of uncovered fixed costs compared to fluctuating co-working spaces. This model offers a more predictable revenue stream, with the added advantage of being able to charge a premium, thus enhancing net income. Managed offices also tend to have lower vacancy downtime, as their ready-to-use, fully-serviced nature appeals to tenants seeking convenience and flexibility. This results in financial stability for landlords and potential for increased profitability.
Transforming Traditional Spaces
Forward-thinking landlords are leveraging the trend towards flexible workspaces by transforming conventional office areas into dynamic, managed environments. This strategic shift to offering a mix of private offices, co-working areas, and communal spaces aligns with the diverse requirements of modern tenants, leading to increased occupancy rates, tenant satisfaction, and ultimately, enhanced property values.
The Bottom Line
The rise of managed office spaces is a curveball that landlords can catch and throw back with interest. By understanding this trend and adapting to it, landlords can not only safeguard against market shifts but also tap into the burgeoning demand for flexible, service-rich work environments.
Practical Advice for Landlords
Adopt a Tenant-Centric Approach
In today's dynamic real estate market, a landlord's adaptability is key. Understanding and responding to the evolving needs of modern tenants is crucial. A strategic move is to rent office furniture from NORNORM and use their subscription service. This choice allows for swift and easy customisation of spaces to align with diverse tenant preferences. More importantly, it addresses the perennial challenge of furniture inventory management. With this approach, you can effortlessly update or change the setup to suit new tenants, reducing downtime and ensuring your spaces are always ready and appealing. This not only satisfies specific tenant requirements but also simplifies the often cumbersome process of transitioning spaces between different occupants.
Invest in Technology
In the digital age, a building without smart technology is like a car without power steering – harder to manage and less enjoyable to use. Incorporate tools like OfficeRnD, which streamline everything from room bookings to billing. It's about making your building not just a space, but a smart space.
Focus on Community Building
Building community in a flexible workspace is like cultivating a garden – it requires care but blooms wonderfully. Take inspiration from places like Epicenter in Stockholm, known for hosting keynotes and learning sessions for its startup community, or Sustainable Ventures in London, which organises climate tech events. These initiatives transform buildings into buzzing hives of collaboration and innovation. This not only enhances the appeal of your property but also supports the growth and success of your tenants.
Embrace Sustainability
Sustainability in building management is like a good diet – it's not just a phase, but a lifestyle. A lifestyle that more and more tenants are looking for. Implement green initiatives such as energy-efficient lighting, water-saving fixtures, or recycling programs. Consider the example of The Edge in Amsterdam, heralded as one of the greenest buildings in the world, using LED lighting and allowing employees to control their environment via a smartphone app.
Diversify Your Portfolio
Achieve a balance between traditional leases and flexible spaces. This strategy ensures stability in your revenue streams while capitalising on the burgeoning demand for flex spaces. It’s about not putting all your eggs in one basket but diversifying to cater to a wider market.
Balancing Flexibility and Stability
Long-Term Strategy
While the market is leaning towards flexibility, it's important to maintain a strategic long-term vision. Your goal should be to create a property portfolio that aligns with your long-term investment objectives while being responsive to the evolving needs of tenants. This balance is crucial for sustainable growth and success in the real estate market.
Risk Management
Mitigate risks by diversifying your tenant base and lease durations. This strategy helps to cushion against economic fluctuations and keeps your portfolio resilient in a changing market.
The evolution towards flexible workspaces is more than a trend in commercial real estate; it's a critical shift for success. Landlords who adapt with innovation, community focus, and sustainability aren't just keeping pace; they're setting the pace, ready to capitalise on future opportunities. By embracing this new reality, they position their properties as premier destinations in a competitive market.
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