FMJ.CO.UK INTERVIEW FOCUS
SEPTEMBER 2019 33
years. Almost half, 44 per cent, predicted
that flexible space will constitute up to a
fi h of all o ice space in the next three
years, and an additional 16 per cent believe
that as much as half of their workspace
globally will be in flexible space within the
same time period.
WHAT’S BEHIND THE TREND?
Kurt Mroncz worked for Regus for 12 years
and is now Managing Director of broker
O ices iQ, which helps clients find flexible
workplace memberships both in the UK
and internationally. He cites the changing
economic climate as the catalyst for
change: “If we go back to the last downturn,
2008, what happened in e ect was that
organisations reduced their headcount but
were le with a lot of real estate which they
were committed to but not really using.
From that point on, alongside a rise in
digital technology that allows individuals
to work from anywhere, there has been a
growing interest in the use of flexible space
as a real estate strategy.”
There has been a huge influx of coworking
and serviced o ice providers within the
commercial property sector. Alongside
Regus, which is now part of IWG, the now
ubiquitous WeWork brand has so disrupted
the market that real estate giants have
launched their own brands – such as British
Land’s Storey – which focus on o ering
flexible workspace.
Finding and choosing the right kind of
space among such a plethora of options
can be time-consuming, however, which
is where brokers such as O ices iQ step
in. They help clients find flexible o ice
and coworking space, whether they are
start-ups, small firms looking to expand or
large corporate organisations with complex,
multinational o ice space needs.
Says Mroncz: “Clients may initially come to
us for our database of about 10,000 serviced
o ices globally, but for every client we’ll do
a bespoke search – which means quite o en
the space we’re proposing for our clients is
an option which is not even known about
yet on the market. The way the industry
works means there is no fee to our client for
anything we do, even an end-to-end service,
as we get a finder’s fee. We search for the
available space free of charge and will help
clients decide on the space required. The
client then views the space, selects the best
option and moves in.”
The term coworking is o en bandied
about in the same breath as flexible or
serviced o ices, but as Mroncz explains,
there are four main models.
VIRTUAL OFFICE
This is the most basic of solutions, o ering
a client a fixed address but no physical
facility. Instead there is a virtual o ice
o ering a registered o ice address, and
other services such as mail forwarding,
telephone answering and occasional
meeting rooms available for rent.
SERVICED OFFICE
Typically described in the US as an
‘executive o ice’, this is a dedicated
o ice within a business centre, available
on a short-term lease ranging from one
month to a maximum of three years. It
o ers occupants a fully inclusive service,
covering utilities, telephone, IT, security,
cleaning and reception services. Says
Mroncz: “Clients sign an agreement
and pay the provider a monthly
fee for inclusive services, but
fundamentally, they’ve
rented an o ice and are
in a fixed space.”
Clients may initially come to us
for our database of about 10,000
serviced offi ces globally, but for every
client we’ll do a bespoke search – which
means quite often the space we’re proposing
MANAGED SPACE
Managed space
accommodates
clients with
larger space
requirements, above
465 sq m (5,000 sq ),
and usually a minimum
18-month term, where
a more bespoke solution
is required. A serviced o ice
provider will take the lease on the
building so the client is not committed
long term – meaning that the provider
is funding all of the leasing and all of
the fit-out themselves. This means no
capital expenditure for the client, who has
flexibility to move on a er a fixed period or
simply renew.
According to Mroncz, managed space is
“something which is gathering pace, with
many major brands getting involved. For me
this is overtaking coworking in terms of who
is getting involved in it and its future impact
on FM.”
COWORKING
Coworking basically means working in a
collaborative space that is occupied by a
number of individuals from many di erent
companies. Most of the big brands including
WeWork will also o er private o ices for
dedicated teams. Users buy membership
of a coworking centre to access a ‘business
lounge’, work hub’ or ‘collaborative space’,
however it is described, for access to a
private desk, a hot desk, ad hoc seating or
a combination. These memberships are
available on a full-time basis or for a
certain amount of days per month.
You can also choose whether
you want access to one specific
centre, all centres in a city or
a country, or even across a
global network.
“Coworking has been
perceived as primarily for
start-ups and SMEs who
still make up the majority
of clients,” says Mroncz. “An
example of a large corporate
using coworking could be a
large company which wants to
for our clients is an option
which is not even known about
build up an international sales team
without incurring the costs of a fixed base
in a myriad of locations around the world.
Another example is a blue-chip company
which moves back o ice sta to a flexible
space while a new workspace is being fitted
out.
“In this way, coworking has become part
of many corporate real estate strategies,
though my belief is that it’s still in its early
days. While feasibly you can go in and
yet on the market.”