There is a lot of hype about the flexible office market and it is true to say that it is growing exponentially, with large players, corporate landlords and smaller, more bespoke brands jostling for a piece of the action.
There is a lot of hype about the flexible office market and it is true to say that it is growing exponentially, with large players, corporate landlords and smaller, more bespoke brands jostling for a piece of the action.
New research estimates that the flexible office sector now makes up nearly 6% (13.3m sq ft) of the London office market and it looks set to continue gathering momentum.
WeWork is undeniably the poster child for the changing approach to office space, with the space-as-a-service model becoming standard practice. This has initiated a wider market trend as other companies have swiftly followed suit, leveraging a more customer-centric approach to business. This has led the office market to become awash with curated office space, designed with well-planned fit-outs and a range of flexible options in terms of interior style and lease lengths.
As the sector hots up, flexible providers are increasingly having to distinguish themselves to ensure their own longevity in a market that is becoming ever more saturated.
Although it is clear that spaces need to be aesthetically attractive and well managed to draw in customers, another powerful trend is emerging: wellness.
Understanding that wellness is a key aspect of providing space as a service, many flexible office providers are capitalising on the blurred lines between work and leisure in the modern business climate. They are creating spaces that epitomise working wellness to attract the younger workforce.
When choosing who it works for, this next generation of talent has differing priorities that place weight on ensuring it has access to a happy and healthy working environment, rather than being solely compensation-driven.
The incorporation of wellness services is proving particularly attractive to young start-ups, who are willing to pay a premium for these ‘wellbeing-focused’ spaces. Conversely, professional services firms have been much slower to adapt to this trend as they are less willing to pay that premium.
Wellness features incorporated into flexible office spaces include specific meditation and quiet rooms (which are becoming the norm) and relaxing activities such as yoga and fitness classes.
One step further
Some providers have gone a step further, with TOG installing a boxing ring and gym facilities at its Eccleston Square location in Victoria; WeWork introducing ‘puppy therapy’ sessions to improve the mental health of its occupiers; and Fora providing sleep pods at its Borough High Street location.
Likewise, Office Space in Town’s Blackfriars scheme is ‘happiness inspired’ and has been designed to boost productivity and wellness, featuring a spa-like club lounge.
Certain providers have made wellness central to their core proposition. Uncommon has installed more than 1,000 plants and trees within its new scheme at Liverpool Street (see p28) and is showcasing a new light art installation – ‘In a Heartbeat’ – which monitors heart rates and stress levels at the touch of a finger.
The office market is changing rapidly, and the race is on to see which flexible providers can rise above the competition to provide the most compelling offer. Wellness is central to this, and I’m sure we will hear of many more inventive concepts over the years to come. Wellness is here to stay.
Amanda Lim is head of flexible office solutions at Knight Frank
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