Investment in quality of space should be at the forefront of every client’s agenda when considering new offices, regardless of size.
Providing a good working environment for staff will play a large part in their day-to- day wellbeing and drive productivity. Ultimately, there is nothing quite like working in a space that makes you happy.
For businesses looking at conventional space, this investment can be substantial. Depending on the condition of the office taken, specification required and the need for major work (like air conditioning), the cost of fit-out through specialist firms ranges from £25 to £100 per square foot and beyond.
These costs can significantly impact a company’s cash position, forcing it to compromise on their ‘perfect’ space.
With serviced offices over the last few years, the word ‘compromise’ does not feature in the dictionary. Their products are delivered to a standard beyond the financial reach of all but the most cash-rich clients.
This quality aesthetic does not come cheap. We caught up with Giles Fuchs, founder of Office Space in Town, who remain a market leader in delivering award-winning serviced office buildings that have set hearts racing since the company’s inception.
Their most recent building at Monument has been a roaring success, drawing clients from the City of London and beyond to relocate into the maritime-themed space.
The question posed was this: just how much cash did it take to deliver this product to market?
The answer is a lofty £8,000,000 for a building with the capacity to house 700 desks.
Giles’ rationale behind this kind of expenditure is straightforward: “The better the quality of the fit out the longer and more robust the income stream. We own our builds do probably spend more than most because rather than depreciating the fit out over the term of a lease, say 10 years, we can depreciate it over the life cycle of the building. Also, the more we spend the more our buildings are worth; so, a win-win for us.
Our clients tell us that part of the unintended consequence of the themes and quality is that that they are attracting and keeping better quality staff than they had dare dream of.
Of course, it also makes the spaces easier to keep full, retains clients longer, all of which is good for our business.”
Companies seeking new office space should consider the level of investment by serviced office operators in design and fit-out, as it relates to each individual occupying space, not to mention the inclusivity of services, quality of care and ongoing maintenance.
Put it this way: if an employee requested that £11,000+ was spent on improving their workstation area as part of an office move, the ensuing conversation would be interesting indeed. With top-tier serviced offices like Office Space in Town, however, this is exactly what clients get. Needless to say, a high percentage of tenants at St Dunstan’s have been there since opening and have absolutely no plans to leave.
Worth keeping in mind.