What type of building would be suitable?
We undertake a brief feasibility study to ascertain whether the available premises would be suitable for use as a Serviced Offices, we look at the following key criteria:
- Size + floor plate
- Fenestration+ Location
- Further considerations are; other local business centres, dilapidations, building facilities, condition, car parking, public transport links and current level of cellularisation, if any.
The properties may be held either leasehold or freehold and should be available for a minimum of 5 years and could be either a standalone building or floors within a building. The minimum size required would be 10,000 sq ft in London and 14,000 sq ft outside of London.
Breaks can be incorporated if the Landlord would like to secure vacant possession at anytime.
If you are interested in the services we can provide please contact our property team, Ben Hutchen, Property Director, 020 3206 1193 – [email protected]
What the Market Wants
Climbing rents and a competitive economy means tenants are looking for value, an edge, and a building that will harness their business and aid their growth and preferably come in on or below budget. To help these businesses work smarter the building provision must be smarter.
A short walk into most offices will show a plethora of empty desks. Spaces vacated by workers on leave, on the road, or in the coffee shops. The shift must be to help businesses make the most of this and landlords must be open to providing a building that enables companies to make more economic use of their space. The new generation of workers have adapted to new technology, embraced the move to a paperless office and react well to mobile working and desk hopping. Tenants are embracing this and so are the ever more demanding workforce. Landlords must be at the forefront of this shift and provide a framework that allows this to thrive.
For large new office developments the landlord should consider a joint venture (JV) with Clarendon to provide onsite facilities to other building occupiers. Clarendon would design, plan and implement a range of working spaces within the building working with their dynamic sales team and supporting the landlord. The office accommodation comprises of a diverse range of spaces; from private offices, meeting rooms, co-working stations and break-out space.
Tenants given the comfort of in-house expansion space may commit to longer terms. This additional demand may be due to business success and growth, or periodic and short-term requirements for contract work. The demand for flexibility has shortened the average lease length from over 10 years to under 5 years. The Landlord can use this requirement as a competitive advantage by providing this expansion area within the building.
Helping Businesses Thrive
In this generation of low unemployment staff can pick and choose where they work and companies are competing to employ the best and the most talented. They are staff that can boost a business, and in the right environment will remain loyal and hence avoid increased recruiting costs. Providing the right working environment is key to retaining quality staff.
Companies often take more space than required so they can grow into it. This might sound good for the landlord initially, but it could financially stretch a client to such an extent that they end up in breach of their terms. Having flexible space onsite means that companies could consider slightly less space than they initially thought necessary because of the extra flex-space available. They may, for example, be able able to strip out their onsite boardrooms (at the outset or at a later date) given they would be available in the serviced office facility.
The serviced office provides an excellent springboard for growing companies that want to make the shift from serviced to traditional leases which would promote expansion within the building and provide the landlord with a potential tenant supply.
Sister and Support Companies
The availability of a serviced office in the building means that smaller companies which depend on, or have close relations with, the larger tenants could house themselves in the same building; benefitting the landlords tenants.
The landlord can gain as much or even more income by entering into a JV with Clarendon than from a traditional straight letting through sharing in the upside of the profitability of the centre..
Julian Cooper comments “All the signs would now suggest that we are entering a new era for commercial real estate where occupiers of offices, and the workers within them, demand contemporary space for functioning and fresh environments in which to perform. There is a fundamentally different mindset in which offices are consumed and experienced. At Clarendon, we are facing these challenges and changing that mindset in constructive collaboration with property owners and space users alike. We invite you to come and talk to us about the future of work and place, and how we might help optimise your property holding.”