Flexioffices have been busy researching the impact of COVID-19 across 13 different industry sectors. 23% of senior decision-makers responded that price and office size are two crucial factors when it comes to deciding the future of their office.
With this in mind, we want to offer some financial insights as to how the *co-working sector could be a more cost-efficient option for your business moving forward.
*By co-working, we mean people who work in a serviced office sharing facilities, but work for different companies. To find out more about co-working or what we mean by serviced offices, click here.
Without further ado, here they are: 5 ways co-working offices are more cost-efficient than the alternative:
1. A flexible lease is simply cheaper than owning an office.
The National Archives Impact of Office Design Report found that property costs and operational costs are the second largest expense for office-based organisations - second only to employee salaries.
This isn’t surprising considering what work goes into owning an office space. There’s equipment, fit-out, and furniture to consider - for a start!
The Design Report found that over 25 years, running and maintenance of the building, cleaning, and security accounts for 47% of a year’s expenditure.
2. Serviced offices are ‘all-inclusive’.
Ok, we say all-inclusive. But that is dependent on different office providers and your contract. Typically speaking, though, serviced offices do include a whole bundle of costs that the alternative does not, such as:
- rent
- business rates
- service charges
- utilities
- cleaning / waste disposal
- furniture
- security
- front of house services
- refreshments
There are, of course, things that aren’t always included (robust bandwidth per office and size, parking, bike storage, for instance). The large costs encountered in owning an office, however, are largely accounted for in serviced offices. Always be sure to ask on your serviced office viewings.
3. Co-working offices optimise space.
The book, The State of the Office, found that the average desk is only occupied for 45% of office hours. The remaining 55% tends to be spent in meetings, visiting clients, training, sick or on annual leave.
- Co-working optimises space with hot-desking.
Hot-desking means people who share a work area, with no fixed-seat assigned. No set desks. Anybody can turn up, plug-in and work, coming and going as they please.
The State of the Office cites Anderson Worldwide as an example. This Chicago-based reduced the space that would have been used in a conventional layout by 30%, thanks to their tailor-made office design. The overall savings on rent and occupancy costs paid for the initial capital outlay within four years!
4. Co-working cuts the cost on energy bills.
Professor Arno Schlueter, Chair of Architecture and Building Systems at ETH Zurich Institue of Technology, has published much research on what he describes as ‘3for2 Buildings’.
In a nutshell, ‘3for2’ splits cooling and dehumidifying levels, resulting in lowering electricity usage, saving a floor’s worth of space and reducing energy consumption by 40%. There is no end to the technological solutions in SMART buildings when it comes to cost-efficiency.
5. Co-working offices are ready-made to emanate your company culture.
One-third of companies say they found maintaining company culture difficult during the pandemic.
We’ve said it before and we’ll say it again: moving forward, the businesses that thrive will be those that champion their employees and give them a sense of purpose in their work - be that in or out of the office.
The question the finance teams and decision-makers have to ask themselves moving forward is this: Do you have the money and time to spend fitting out a shell office to make it feel like it’s yours? Branding a building, up-keeping facilities, office furniture, breakout space, and collaboration spaces are all costly when you’re buying an office and making it your own from scratch.
Not to mention the obligatory pizza, doughnuts, alcoholic refreshments, and any other treats we know you’re rewarding your teams with to show them your appreciation!
This, in our opinion, is the main benefit of co-working office space to rent: serviced offices are ready-made luxury spaces - all you have to do is find one that emanates your company culture, values, and mission.
Your company culture might revolve around collaborating artists. Your values might champion creative innovation and collaboration in project-centred space. Your mission might be to encourage networking in your industry. You might require private meeting rooms and a corporate feel to impress clients.
Our advice? Go back to basics: what is the objective of your business? And what environment will help your employees do what they do best? Communicate with your team. Find out what matters to them and implement that in your co-working office.
Where to start in your co-working office search? Let’s make it a collaborative effort.
And there you have it! The top 5 ways that co-working space is a financial no-brainer.
All you have to do now is find out what your staff value and put your office search into gear. If you’re unsure of anything - location, the environment you want to create, or what tone feels right for you - we can help.
Get in touch with us to discuss your office needs.
