The CoWorking
Revolution
It is a concept centred on a core set of values: community, openness, collaboration and accessibility. The exact definition of Coworking can vary by interpretation, but it is widely accepted that it represents a fundamentally new way of thinking about how we work.
In the broadest terms, Coworking describes any situation where two or more people are working in the same place together, but not for the same company. This can happen in a variety of locations, whether a cafe, a hotel lobby or a designated Coworking Space.
Coworking Spaces are businesses dedicated to the values outlined above. Providers include The Office Group, WeWork and Neuehouse. They represent a foundation of infrastructure for a growing number of people who want to work where, when and how they want.
The rise of Coworking is a response to several trends that should support strong development in the future. They include technology enablement, the growth of the tech, online and creative industries, generational change and an increase in micro businesses and independent workers. Coworking Spaces are primarily utilised by small businesses and independent workers, but the trends prompting the growth of Coworking are also prompting changes to the traditional working styles of larger, corporate organisations. This is manifested in the adoption of Activity Based Working.
This report sets out to track those trends, and the new world of work that has ensued. It takes stock of the benefits associated with Coworking and touches on the potential future benefits for landlords and corporate organisations.
It is hard to ignore the Coworking revolution which has slowly been building
momentum for the last few years. Coworking has moved from a niche market to a fully
fledged alternative to the traditional office set up.
Coworking Spaces are primarily utilised by small
businesses and independent workers, but the trends
prompting the growth of Coworking are also prompting
changes to the traditional working styles of larger,
corporate organisations. This is manifested in the
adoption of Activity Based Working.
TOBy OGDeN,
MICRO BUSINESSES AND INDEPENDENT WORKERS
In June 2014 there were 4.2 million home workers in the UK, the highest level of home working since comparable records began. The number of home workers has grown by 1.3 million since 1998 and the home working rate increased from 11.1% in 1998, to 13.9% in March 2014 – higher than any point in the past decade and a half. The scale of remote working proves how easily it can be done. Micro businesses are also increasing, representing 96% of companies in the UK and employing more than 7 million people. Increases in new businesses are partly explained by the expanding funding available for entrepreneurs, including the emergence of sources such as the Business Growth Fund, angel investment networks and crowd funding, as well as tax breaks for those investing in start ups.
The story behind
the growth
If micro businesses grow year-on-year at the same rate as they did between 2012 and 2013 they will account for 1.1 million new UK enterprises by 2024. According to Oxford economics, self employment will also increase; by 15% in the next ten years. This estimated rise of 15% in the next 10 years will mean 5 million people in the UK will be self-employed by 2024.
Although not all of the UK’s self-employed and micro businesses will require Coworking Space, these groups incorporate millions of people and the scale of their growth means many of them will contribute to future demand for more flexible working environments.
TECHNOLOGY ENABLEMENT
Although not all of the UK’s
self-employed and micro businesses will
require Coworking Space, these groups
incorporate millions of people and the
scale of their growth means many of
them will contribute to future demand for
more flexible working environments.
SOPhy MOFFAT,The growth of Coworking (and Activity Based Working) has been enabled by new technologies that have greatly reduced barriers both internally and externally for many companies. The explosion of online networks has helped entrepreneurs to reach people overseas and carry out tasks cheaply and highly collaboratively; internal collaboration tools such as yammer, Jive and huddle have enabled companies to bring employees together across borders, and businesses are increasingly expressing the desire to transfer some or all of their services, data and software to the cloud in order to enable remote working.
It is clear that businesses do not need the same level of
infrastructure as was required in the past. Not only has this led to a higher number of independent workers and micro businesses, the increasing integration of technology into every work place is enabling employees to harness services and devices in ways that support flexible working across businesses of all types and sizes. As the world becomes more mobile, a higher number of people will be able to work from the office, their home, the coffee shop and their clients’ offices.
The next stage of this is evidenced by hudson yards (a pioneering quantified community in New york City expected to complete in 2018) where the integration of technology is being taken to new levels. The developers plan to collect big data about inhabitants to create better and more efficient work (and living) spaces. The analytics this will drive will enable occupiers to understand how, why and where their employees work within their space. Jay Cross, president of Related hudson yards, comments “you not only want to have a smart phone today — you want to live in a smart building and a smart community”.
TECH fOR fLExIBILITY
NO TOUCH INTERfACES
Basic pattern recognition technology has been advancing for generations. From Microsoft’s Kinect to Apple’s Siri to Google’s Project Glass we are beginning to expect that computers adapt to us rather than the other way around.
1
THE WEB Of THINGS
everything we interact with becomes a computable entity. Our homes, offices, cars and even objects on the street will interact with our smart phones and with each other. Near Field Communication will allow for two-way data communication with nearby devices and ultra low power chips will harvest energy in the environment, which will put computable entities just about everywhere.
2
SUPERCOMPUTING
Companies ranging from IBM to Google to Microsoft are racing to combine natural language processing with Big Data systems in the cloud that we can access from anywhere. These systems will know us better than our best friends, but will also be connected to the entire Web of Things as well as the collective sum of all human knowledge.
3
you not only want to have a smart
phone today — you want to live in a smart
building and a smart community.
JAy CROSS,
Coworking members at WeWork in Washington DC.
WeWork recently opened a Coworking Space at Sea
Containers house in london.
The story behind
the growth
Although not all of the UK’s
self-employed and micro businesses will
require Coworking Space, these groups
incorporate millions of people and the
scale of their growth means many of
them will contribute to future demand for
more flexible working environments.
SOPhy MOFFAT,CeNTRAl lONDON ReSeARCh, DTZ
GENERATIONAL CHANGE
london’s workforce is young. One in three of the UK’s 20 to 30 year olds relocating between 2009 and 2012 moved to the capital. As younger generations move into the workforce it has become apparent that their expectations differ from those of older generations. PwC’s 2013 NextGen Study found that Millennials want more flexibility and the opportunity to shift hours, if they were able to make their current job more flexible 64% would occasionally work from home and 66% would shift their work hours. This is supported by research from the Intelligence Group: 74% of the Millennials they surveyed wanted flexible work schedules and 88% favoured the kind of collaborative culture offered by flexible working environments over competitive culture.
Gen y are digital natives: the third annual Cisco Connected World Technology Report surveyed 1,800 college students and workers aged 18 to 30 across 18 countries, and noted “Ninety percent of
Gen y surveyed worldwide said they check their smart phones for updates in email, texts and social media sites, often before they get out of bed [...] there are 206 bones in the human body, and the smart phone could plausibly be considered the 207th for Gen y”. Mobile devices are just the beginning. As more people, processes, data and things join and interact on the Web of Things, the volume and potential value of the data generated by those connections will grow exponentially. The attitude of Gen y towards work (they prefer flexibility), and the role technology plays in their work and everyday lives has resulted in a desire to be able to work anywhere and anytime. Their preferences can be well served by Coworking and Activity Based Working.
A workspace problem for
small businesses is the seed
for the growth of Coworking
For both independent workers and micro businesses, conventional offices have
shortcomings. These are partly practical and partly aesthetic.
Practically, it is difficult for micro businesses and independent workers to plan ahead to the same extent as more established businesses. Independent workers and micro businesses are therefore unwilling to commit to traditional lease terms (i.e. a five, ten or even fifteen year lease with a break at the half way point). But finding traditional landlords willing to offer flexibility can be challenging, particularly for new businesses where a lack of covenant strength may be an issue.
Many independent workers and young businesses are unable to provide landlords with years of company accounts and guarantees, providing another obstacle to those that want to take conventional offices. Georg ell, former european General Manager of yammer (an enterprise Social Network designed to connect workers to share
information and foster collaboration within businesses) comments of their search “The guarantees landlords asked from us were sometimes ridiculous — in one case, as long as 24 months. And they wanted three years’ UK trading accounts which is impossible because the entire business had only been going two and a half years, and all of that was in San Francisco”.
Flexible working styles mean the boundary between work and home is increasingly blurred. Many Coworking Spaces have tapped into this by creating environments that resemble trendy coffee shops more than corporate hQs. This has a significant impact on design. Central Working (a Coworking provider with units across Central london) provides boutique style working space with
The guarantees landlords asked from us were
sometimes ridiculous – in one case, as long as 24
months. And they wanted three years’ UK trading
accounts which is impossible because the entire
business had only been going two and a half years,
and all of that was in San Francisco.
GeORG ell,
interiors featuring designer furniture and modern art, The Office Group’s Coworking Space in Shoreditch features antiques sourced by creative practice Acrylicize, and Neuehouse’s space in New york was decorated by David Rockwell, an architect known for his work on set design.
Many independent workers and micro businesses favour collaboration and view it as a major driver for growth. Indeed, this is a key component of the success of london’s ‘Silicon Roundabout’ where many small businesses have thrived, and technology companies have risen from 15 to 5,000 in just five years. Charlie Green, CeO of the Office Group comments “Between 10 and 20 per cent of space at our offices is communal, but demand is increasing”, and some creative, tech and new media organisations demand at least 50% of their floor space be dedicated to areas where employees can socialise and work collaboratively.
Ultimately, rather than thinking of the office as a place primarily for solitary activity, from which workers occasionally break out to settings intended for social activity, many independent workers and micro businesses see the office as a sociable setting from which private places for concentration and confidentiality are occasionally sought.
Rather than thinking
of the office as a place
primarily for solitary
activity, from which workers
occasionally break out to
settings intended for social
activity, many workers see
the office as a sociable
setting from which private
places for concentration
and confidentiality are
occasionally sought.
RIChARD hOWARD,heAD OF CeNTRAl lONDON AGeNCy, DTZ
in the young businesses they accommodate, and focus on a high churn of occupiers. In contrast, Coworking Spaces are targeted not solely at start ups but at an entire class of professionals. Charlie Green, CeO of The Office Group comments “We do not have a niche in terms of sector or age, Generation y is important, but we do not bracket generations because it is limiting. We all work in similar ways.”
Along with the ease and flexibility of membership, some organisations and individuals renting space from Coworking providers are able to benefit from cost savings. For conventional offices in london, such as those traditionally occupied by global corporations, occupancy costs per workstation are £776 per month in the City
and £1,354 per month in the West end. This makes some of the most expensive Central london Coworking providers look relatively cheap.
There is also a narrower pricing gap between submarkets than at conventional offices. For a typical corporate office, occupancy costs per workstation per month are almost £600 more in the london’s West end than in the City. The difference in cost between Coworking Spaces in those markets is just £63 per member per month. In effect, this gives Coworkers more scope than many other Central london businesses when they are deciding where to locate.
Analysis of Coworking members across Central london shows that 51% are in the tech and digital sector, 21% are in the An upshot of these changing aesthetics
and practicalities is the rise of Coworking providers. When independent workers and micro businesses decide to occupy Coworking Space, they make no long term commitment. This alleviates the need for the forward planning that prevents them from leasing conventional offices. This is because Coworking Space is taken on a membership basis, which can cost as little as £230 per person per month at providers including MetrolAB near King’s Cross, and as much as £699 per person per month at Co Work in the City of london.
Coworking Spaces are not in the market for the same reason as incubators and accelerators. The latter two are small start up hubs used by venture capitalists and large companies who might take an equity stake
Coworking providers are
bridging the gap between what
landlords can offer and what
many businesses want
communications and media sector, and 10% are in the creative sector. This means the majority of demand for Coworking is currently coming from the type of businesses that prefer to be in non-core areas.
half of businesses from the tech, creative and new media sector leasing Central london offices in 2014 have taken space in submarkets outside the City of london and the West end. Accordingly, many Coworking Spaces are currently located in fringe areas with 15% in Westminster or the City of london.
For a typical corporate office, occupancy costs per
workstation per month are £600 more in the London’s
West End than in the City. The difference in cost between
Coworking spaces in those markets is just £63 per
member per month. This arguably gives Coworkers
more scope than many Central London businesses
when they are deciding where to locate.
Sophy moFFAT, CEnTRAL London RESEARCh, dTZCoworking Space at The Office Group in Mayfair
Russell Sq Chancery Lane Holborn Farringdon Barbican Templ e Covent Gdn Tottenham Court Rd Goodge St Warren St Regent's Park Maida Vale Warwick Ave Royal Oak ou rne k Notting Hill Gate Bayswater Queensway Earls Court on West Brompton South Kensington Pimlico Sloane Square Vauxhall St James's Park High Street Kensington Knightsbridge Hyde Park Corner Paddington Lancaster Gate Marble Arch Bond St Oxford Circus Edgware Rd Marylebone Baker St Gt Portland St Euston Square Euston Green Park Victoria Kennington Oval Elephant & Castle Southwark Borough Lambeth North Gloucester Road Picc. Circus Embankment Charing Cross Waterlo o Westminste r Angel Moorgate Old Street Leicester Sq. St Paul's Bank Mansion House Monument Cannon
St Tower Hill & Tower Gateway Aldgate Aldgate East Mornington Crescent Camden Road Caledonian Road & Barnsbury Highbury & Islington Canonbury Dalston Kingsland Hackney Downs HackneyCentral
Dalston Junction Caledonian Road Camden Town Blackfriars St John's Wood Swiss Cottage Chalk Farm Kilburn High Rd Parsons Green Imperial Wharf Fulham Broadway Denmark Hill Peckham Rye Nunhead Lewisham St Johns Deptford Greenwich New Cross New Cross Gate Cutty Sark W India Quay Poplar Westferry Limehouse Shadwell Whitechapel Stepney Green Mile End Stratford Stratford Int’l Stratford High St Ea In All Saints Langdon Park Devon Road Bromley -by-Bow Bow Road Bow Church Pudding Mill Lane Hackney Wick Heron Quays Island Gdns Mudchute Crossharbour Canary Wharf Stockwell Loughborough Battersea Park Kings Cross St Pancras Liverpool St Coram 's Fields Gray's Inn Gdns Inner Temple Gdns Lincoln's Inn Fields Queen Mary's Gardens Regent's Park Boating Lake Public Gardens Paddington Recreation Ground Cem. Kilburn Grange Pk Brom pton Cemetery Brom pton Park Burton's Court Ranelagh Gardens Kensington Gardens Hyde Park Gdns Gdns St James' s Park Green Park Buckingham Palace Gdns Archbishop’s Park Victoria Tower Gdns The Oval
(Surrey CountyCricket
Ground) Kennington Park
Kennington Park Spring Gdns Vauxhall Park Rec. Ground Faraday Gdns Surrey Square Park Tabard Gdns Park Park Burgess Park Burgess Park Southwark Park Battersea Park Deptford Park Pepys Park Fordham Park Mile End Park Millenium Park Haggerston Park London Fields Mile End Park Furze Green Stepney Gn. Telegraph Hill Park M yatt’s Field Park Rec. Ground Rec. Ground Rec. Ground Rec. Ground Rec. Ground Rec. Ground Rec. Ground Rosemary Gardens Barnard Park Bingfield Park Caledonian Park Playing Fields Bethnal Green Bartlett Park Mudchute Farm Russia Dock W oodlands Lucas Gdns. Sceaux Gdns. Eckington Gdns. Friendly Gdns. M ostyn Gdns. Slade Gdns. York
Gdns. Max RoachPark
Larkhall Park Heathbrook Park Falcon Park Hurlingham Park South Park Parsons Green Eel Brook CommoN Rec. Ground
Tower Hamlets Cemetery Mudchute Park Millwall Park Bridge House M eadows Primrose Hill Victoria Embankment Gdns Jubilee Gardens Shoreditch Park Shoreditch Park Victoria Park Olympic Park W ell Street Common H.A.C. Gnd Cem y. and k P WELLIN GTON RD FINCHL EY RD PARK
PENTON RISE ROAD
AL BANY CAMDEN STREET CAMDEN ST PENTONVILLE ROAD MAI DA VALE AVENUE DELANCEY STREE T HA MPST EA D RO AD GOSW ELL RD CITY ROAD EAST RD ST J OH N STR E E T PARK WAY PRINCE ALBERT ROAD
CITY ST P ANCRA S WAY NEW NORT H RD CALEDONIAN RD THE DRIVE YO RK W AY OAKL EY SQ PRIN CE A LBER T RO AD KIL BUR N HIG H ROAD C H A LK FA RM ROA D HAWL EY ROAD ST PANCRA S WAY CAMDEN RD CAM D EN ROAD YO RK WA Y UP PE R S TR EET NEW NORTH RD CANONB URY RD PRINCE A LBERT RO AD KE NTIS H TOWN R OA D SWINTON ST ACTON ST GRAY'S INN ROSE BERR Y A VENU E KIN G'S CRO SS RD ROAD PANC RAS WHARFDALERD PANCRAS RD RD OLD STREET KING SLAN D R OA D HACK NEY ROAD SHOR EDITCH HIGH ST EUSTON ROAD EVERSHO LT STREET E AST ROAD VESTR Y ST UPPE R ST REET ESSE X ROA D ESSE X ROA D KI NG SL AN D R OAD YORK WAY CAM DEN HIGH S T FINC HLEY ROAD CAMB RIDG E H EA TH RO AD CA MB RID GE H EA TH R OAD BETHNAL GREEN ROAD HACKNEY RO AD GR OV E R OAD GR OV E R OAD WICK RD HIGH ST REET HIGH ST MARE ST W ELL STREET AMHURST R OAD CASSLAND ROAD GRAHAM ROAD V IC TO R IA PA R K R O A D DALSTON LANE MARE S TR EE T DALSTO LANE KE NWOR THY R OAD LEY TON RD GR EA T EA STERN RD CK RD EAS T C ROSS ROUT E M ILE EN D RO A D BOW ROAD BOW RO AD HOM ERTON HIGH STREET
DALSTON LANE
BALLS POND ROAD
ST PAUL’S RD ST PAUL’S ROAD HOLLOW AY ROAD HIGH BURY G ROVE KENT ISH TO WN R OAD HAV ERST OCK H ILL HA VERSTO CK H ILL VICTO RIA PAR K R OAD EA ST C RO SS R OUTE EAST CROSS ROUTE EA ST C ROSS RO UTE EASTWA Y BLACKWAL L TUNNEL NO RTHERN APP ROACH MA RE ST U P HILL FINC HLEY ROA D ST JO HN'W OOS D ROAD EDGWARE ROAD GLOUC EST ER PL BAKER ST ROAD SUSSEX GARDENS CHAPEL ST MARBLE ARCH OXFORD STREET PEMBROKE RD BROMPTON TABARD ST BOROUGH RD TWR BR. APP TOWER BRID GE ROAD GLOU CESTER PL ACE BAKER STR EET CHE PSTOW
ROAD BISHOP'S BRIDGE RD PRAED STREET
EASTBOURNE TER
R PORTMAN SEYMOUR ST WIGMORE ST WRIGH TS LA SLOANE STREET EATON SQUARE RD WI LTON RD BROAD S'TUARY GT GEORGE ST PARL'T DAOR N OT GN IN NEK LAMBETH BR LAMBETH WAT ERLOO ROAD D AO R S RAI RF KC AL B DA OR SR AIR FK CA LB PICCADI LLY WHIT EH ALL ST JAMES'S ST PALL MALL ETRAFALGAR NORTHUMBERLAND AVE STRAND HA YMARKET CHA RING WATER LOO BRIDGE KIN GSW AY NE W LA NEWGATE ST EG DI RB S RA IR FK CA LB SOUTH WARK BRIDGE LONDON BRIDGE LEMA N STREET CAVENDISH PO RTLAND PL ACE NEW OXFORD ST GOWER STREET SQUARE SOUTHAM PTON BLOOMSBU RY WAY THEOBALD'S KING LONDON MOO RGAT E WICK KENSINGTON GORE EAR LS C OURT RO AD OLD BROMPTON ROAD FUL HAM ROAD KING’S ROAD KE NS IN GT ON C HU RC H S TR EE T NOTTING HILL GAT
E PE MB RIDGE RD PEMB RIDG E VIL LAS EDGWARE ROAD W E ST W A Y W ESTWAY W ESTBOURNE GROVE HARROW ROAD K N IG H T S BR ID G E HAR ROW ROAD BAYSWATER ROAD SQ GATE CU M BERLAND LANE LANE PARK PARK GRO SVEN OR PL ACE ECCLES TON ST SQ PIM LICO RO AD STR EET EUSTON RD ST BOTOLPH ST MINOR IES MA NS ELL S TR EET BYW ARD ST TERR TOW ER HILL BUCKINGHAM BRESSEN . PL PALAC E ROAD MILL BANK AL BERT EMBA NKME NT WALW ORTH ROA D NEWI NGTO N BU TTS ELEP HA NT &CA ST LE OLD KENT R OAD GRANG E ROA D ST DRUID ST TANNER TOOLEY S T LA CRUCIFIX ST THOMAS STREET TOOLEY STR EET ST GEORG E'S ROAD LON DON ROAD NEW INGTO N CAUS EWAY GRE AT DOV ER S TREET LONG L ANE BORO UGH HIGH STR EET MA RSH ALSEA RD SOUT HWAR K BRIDG E ROA D STREET SOUTHWARK STAM FO RD STR EET WES TMINSTER BRIDGE ROAD YORK R D LAMB ETH P ALACE ROA D MILL BANK SQUARE PARK CRESCEN T ST ST REGENT REGENT ST REG ENT ST SQ ALDW YCH VICTORIA EM BANKM ENT NE W B RIDGE HIGH HOLBORN HIGH HOLBORN ST GILES HIGHST CROSS RD SHAFTE SBURY AV E ROW RUSSELL ROAD ROAD CLERKENW ELL HOLBOR N VIADUCT WALL ST GRAC ECHU RCH UPR THAM ES ST LW R THAMES ST CLIVEDENPL ST ROAD KEN NI NGTON RD
BOROUGH HIGH
ST ST ROAD ECCLESTON BR FARRIN GDON ROA D MA RYLEBONE M ARYLEBONE FLYOVER EATONGATE HOB. PL W EST CR OMWELL RD TOTTEN HAM C OUR T RO AD GOODGE ST PALL MALL BELGRAVE ROAD VAUXHAL L BRIDGE ROAD OXFORD STREET PICCADILLY VICTORIA STREET ROAD M ORTIMER BR OM PTON RD PARL IAM EN T ST JAMA ICA RD EAST SMITHFIELD ROYAL M INT ST SQ W ESTMINSTER BR PICC. CIRCUS KENSING TON HIGH STR EET THURLOE PLACE
KENNINGTON
LANE VICT ORIA E MBAN KMEN T BEVIS MA RKS BLOOM SBU RY ST STRAND ABING DO N ST ALDE RSGA TE ST FA RR INGDO N ST GRAY'S INN FARR INGD ON ROAD OLD STRE ET FINSBU RY SQ BETHNAL GRE EN RO AD GREA T EASTE RN STR EET ROAD ROAD CIT Y RO AD CU RTAIN RD TAVISTOCK SQ WOBURN PL EUSTON ROAD CORNER HYDE PARK GOSW ELL COM MERCIA L ST REET W HITECHA PEL HIGH ST ED WA RD ST BISHO PSGA TE HOUN DSD ITCH UPPER THAMES ST BERM ONDS EY S TREE T TOWE R BR IDGE ROAD SOUT HW ARK BRI DGE R OAD LAM BETH R OAD ST BUCK INGHA M P ALAC E SLOANE LW R SLO AN E ST SHOE L A SO U TH W A RK PARK ROAD ROTH ERHIT HE N EW ROA D
ROTHERHITHE NEW
ROAD LOW ER RO AD LOWER RO AD JA M A ICA R O A D RAYMOUTH ROAD RO TH ER HI TH E T UNNE L HAWK STON E RD EVELY N STREET WESTFE RRY ROAD WE STF ERRY R OAD BUSH RD BESTW OOD STREET TH E H IGH W AY TH E H IG H W AY CO M M ER CIA L ROA D CO M M ERCIAL ROAD W HITEC H APEL R OA D M ILE END R OA D BU RD ET T RO AD BU RDET T ROA D CO M M ERCIAL ROAD LIMEHO U SE LINK BUTC HER ROW BISH OPSG ATE ALDGATE HIGH ST GR EAT WE STE RN RD A101 ASPEN W AY WE ST FERRY ROAD WEST IN DIA DOCK ROAD
EAST INDIA DOCK ROAD
A1206 PRESTON'SRD
ASPEN
WAY
EAST INDIA DOCK RD
LIM EHOUSE LIN K BLA CKWALL TU BLACKW ALL TUNN EL BLAC KW ALL TU NN EL NO RTH ER N APPR OACH RD
NEW KENT ROAD NEW KENT ROAD
ICK GDNS
BAYSW ATER ROA D
BROMPTON
RD
CROM W ELL ROAD
CROM W ELL ROAD
KENSINGTON ROAD FE TT ER LA NE FETT ER M AN CHES TE R R OAD M AN CHES TER R OAD CHELSEA BRIDGE SEA GRAVE RD CH ELSEA EM BA N KMEN T CHELSEA BRI DGE ROAD KENNIN GTON PARK ROAD RED CLIFFE GARDEN S FIN BOR OUGH ROAD LILLIE ROAD KING’S
ROAD GROSVENOR ROAD
KENNINGTON LANE
BRIDGEFOOT WAND SWOR TH R OAD STH L AMBE TH R D DURHAM STREET KE NN ING TO N RD WALW ORT H R OA D GROSVENOR ROAD N IN E E LM S L AN E PARRY ST O LD K ENT R O A D NEW CROSS ROAD KE ND E R TS EVEL YN ROAD EVEL YN STREET CREEK ROAD HARLEYFOR D ROAD VAUX HALL BR QU EENS TOW N RO AD W AND SWOR TH ROAD EDITH G ROVE GUNTER GROVE K IN G 'S R O AD KING’S ROAD QU EEN STOW N RD WA NDSW ORTH BR IDGE RO AD PRINCE OF W ALES DR. FA LC ON SO UT H L AM BE TH R OAD NINE ELM S LAN E ASH BURNHAM RD CREM ORNE R D CH EYNE W ALKBRIDG E B A TT E R S E A P A R K RO A D QUEE NSTO WN ROAD DSWO RT H ROA D ALBER T BR IDGE AL BERT B RID GE R OAD
CAM BERW ELLGREEN
GROV E LA NE CAMB ERW ELL NE W RO AD CA M BERW ELL NEW ROAD KEN NINGTON OVAL CA MB ER W EL L RO AD P EC K H A M R O A D ST OC KW EL L R COLD HAR B O UR LA N E CHAMPIO N PARK BR IXT ON R OA D D E N M A R K H ILL BR IXTON RD M EDLAR ST. HARLEY FORD ST CAMB RIDGE RD BAT TER SEA BATT ERSE A B RID GE RO AD F U LH A M R O AD LATC HM ERE RO AD YORK RO A D A D N E W K ING ' S ROAD CLAP H AM ROA D APH AM R O AD U L H AM R O AD F UL H A M R O AD EVELIN A RO AD LAUS ANNE ROA D PECKHA
M ROAD PECKHAM H ST QUEEN’S RD
Q U EEN’S R O A D NEW CROSS ROAD N EW CRO SS ROA D BLAC KHEATH R OAD
BLA CKH EATH H ILL HANOVER PK RY E L ANE LEWISH AM W AY AM ERSHA M R D LEW ISHAM W AY LOA M PIT
HILL THURSTON ROA
D LEW ISHAM RD LEW ISH AM RO AD BR OOKM ILL RO AD BROOKM ILL ROAD GREE NWICH HIGH RD GR EEN W IC H HIG H R OAD GREE NWICH S S T ROMNEY ROAD WA GR EA T WES TERN RD A We S R OA D
Knightsbridge & Chelsea
Victoria
West end –
Mayfair
West end –
St Jame’s
Soho & Covent
Garden
Noho
West Fringe
North Fringe
Midtown
City Fringe
City
Southwark
Docklands
Marylebone TERN
BBon RD CECov
rde
HARIve
CROSS SBU AVE ING CCR BURY Aennttt
RYY TEN HAM COO Eust S aquarreestonon EUSTON R RAASS PANC Kings C K rroosss SSt Panncrasa WHARFDA RD K PENTON PENTONVILLE Angel A GGOOSSWWEL ST tROAD OOMSBURY S T BLOOMSB ST HOLBORN y Lanee STREETET HOLBOR N VIADUC FA RR INNGG Farringdonon FF RO AD RO AD ARRINN GDON R N R R CLERKENW ROA ROAD ansion House UPPER WARKK HIGH STREE T LAN CAMBE RD C em yyyCITYRO AOAD Old Street CITY R EASTER EA OL STREE E OLLDDD S GGGGREAT E ET ET C OR EDITC RTRAIN R TT CU SHO R CU RO AD Hagger P CA MB GREEN L BIS COM MERCIA L Ald t STR EET C
oho
Ga
o & C
Gard
hoo &
Picc. Ci Cirrccusus NT STG
GGr PPALL MAL L MALL A M PPP ARKET ST–
INCUBATORS, ACCELERATORS AND COWORKING
INCUBATORS
Incubators provide start ups with both work space and business development services in a rent based model offered to young ventures in a custom package. Capital is invested in young companies in exchange for a small equity stake. Incubators charge low to no upfront costs for utilising workspace, as well as resources (which include mentors and networks of investors).
1
ACCELERATORS
Accelerators are like schools for start ups. When a start up is accepted into an accelerator programme (lasting between three and four months) they get access to space, mentorship, networking opportunities and small amounts of seed capital. For many accelerators, making money is not the goal – big companies often launch them to tap into the start up community or as a marketing exercise, and governments fund them in order to foster entrepreneurship.
2
COWORKING SPACE
In contrast to incubators and accelerators, Coworking Space is more a style of work than a structured environment or educational programme. Coworking Spaces provide
collaborative environments where companies can formulate ideas. With peer to peer mentorship and greater access to other entrepreneurs, micro businesses and independent workers gain an advantage. Coworking providers offer well designed open spaces with lots of natural light and floor plans that emphasise community. A mix of professions and cultures can be found at Coworking Spaces in cities around the world. Members of Neuehouse in New york, for instance, include music and hotel entrepreneur Chris Blackwell, fashion consultant Julie Gilhart and media maven Jefferson hack.
3
Coworking is an incredible marker for future office spots.
much more than traditional offices Coworking Spaces are
highly sensitive to their micro location, usually matching places
fashionable with a young workforce. A place that works today
with Coworking will be a great location for more traditional
offices in a couple of years.
TAmáS poLSTER,
hEAd oF ConSULTing EURopE, middLE EAST & AFRiCA, dTZ
Russell Sq Chancery Lane Holborn Farringdon Barbican Templ e Covent Gdn Tottenham Court Rd Goodge St Warren St Regent's Park Maida Vale Warwick Ave Royal Oak ou rne k Notting Hill Gate Bayswater Queensway Earls Court on West Brompton South Kensington Pimlico Sloane Square Vauxhall St James's Park High Street Kensington Knightsbridge Hyde Park Corner Paddington Lancaster Gate Marble Arch Bond St Oxford Circus Edgware Rd Marylebone Baker St Gt Portland St Euston Square Euston Green Park Victoria Kennington Oval Elephant & Castle Southwark Borough Lambeth North Gloucester Road Picc. Circus Embankment Charing Cross Waterlo o Westminste r Angel Moorgate Old Street Leicester Sq. St Paul's Bank Mansion House Monument Cannon
St Tower Hill & Tower Gateway Aldgate Aldgate East Mornington Crescent Camden Road Caledonian Road & Barnsbury Highbury & Islington Canonbury Dalston Kingsland Hackney Downs HackneyCentral
Dalston Junction Caledonian Road Camden Town Blackfriars St John's Wood Swiss Cottage Chalk Farm Kilburn High Rd Parsons Green Imperial Wharf Fulham Broadway Clapham
Junction High StreetClapham
Denmark Hill Peckham Rye Nunhead Brockley Lewisham St Johns Deptford Greenwich New Cross New Cross Gate Cutty Sark W India Quay Poplar Westferry Limehouse Shadwell Whitechapel Stepney Green Mile End Stratford Stratford Int’l Stratford High St Ea In All Saints Langdon Park Devon Road Bromley -by-Bow Bow Road Bow Church Pudding Mill Lane Hackney Wick Heron Quays Island Gdns Mudchute Crossharbour Canary Wharf Stockwell Loughborough Junction Battersea Park Kings Cross St Pancras Liverpool St Coram 's Fields Gray's Inn Gdns Inner Temple Gdns Lincoln's Inn Fields Queen Mary's Gardens Regent's Park Boating Lake Public Gardens Paddington Recreation Ground Cem. Kilburn Grange Pk Brom pton Cemetery Brom pton Park Burton's Court Ranelagh Gardens Kensington Gardens Hyde Park Gdns Gdns St James' s Park Green Park Buckingham Palace Gdns Archbishop’s Park Victoria Tower Gdns The Oval
(Surrey CountyCricket
Ground) Kennington Park
Kennington Park Spring Gdns Vauxhall Park Rec. Ground Faraday Gdns Surrey Square Park Tabard Gdns Park Park Burgess Park Burgess Park Southwark Park Battersea Park Deptford Park Pepys Park Fordham Park Mile End Park Millenium Park Haggerston Park London Fields Mile End Park Furze Green Stepney Gn. Telegraph Hill Park Ruskin Park M yatt’s Field Park Rec. Ground Rec. Ground Rec. Ground Rec. Ground Rec. Ground Rec. Ground Rec. Ground Rosemary Gardens Barnard Park Bingfield Park Caledonian Park Playing Fields Bethnal Green Bartlett Park Mudchute Farm Russia Dock W oodlands Lucas Gdns. Sceaux Gdns. Eckington Gdns. Friendly Gdns. W yck Gdns. M ostyn Gdns. Slade Gdns. York
Gdns. Max RoachPark
Larkhall Park Heathbrook Park Falcon Park Hurlingham Park South Park Parsons Green Eel Brook CommoN Rec. Ground
Tower Hamlets Cemetery Mudchute Park Millwall Park Bridge House M eadows Primrose Hill Victoria Embankment Gdns Jubilee Gardens Shoreditch Park Shoreditch Park Victoria Park Olympic Park W ell Street Common H.A.C. Gnd Cem y. and k P WELLIN GTON RD FINCHL EY RD PARK
PENTON RISE ROAD
AL BANY CAMDEN STREET CAMDEN ST PENTONVILLE ROAD MAI DA VALE AVENUE DELANCEY STREE T HA MPST EA D RO AD GOSW ELL RD CITY ROAD EAST RD ST J OH N STR E E T PARK WAY PRINCE ALBERT ROAD
CITY ST P ANCRA S WAY NEW NORT H RD CALEDONIAN RD THE DRIVE YO RK W AY OAKL EY SQ PRIN CE A LBER T RO AD KIL BUR N HIG H ROAD C H A LK FA RM ROA D HAWL EY ROAD ST PANCRA S WAY CAMDEN RD CAM D EN ROAD YO RK WA Y UP PE R S TR EET NEW NORTH RD CANONB URY RD PRINCE A LBERT RO AD KENT ISH TO WN ROA D SWINTON ST ACTON ST GRAY'S INN ROSE BERR Y A VENU E KIN G'S CRO SS RD ROAD PANC RAS WHARFDALERD PANCRAS RD RD OLD STREET KING SLAN D R OA D HACK NEY ROAD SHOR EDITCH HIGH ST EUSTON ROAD EVERSHO LT STREET E AST ROAD VESTR Y ST UPPE R ST REET ESSE X ROA D ESSE X ROA D KI NG SL AND R OAD YORK WAY CAM DEN HIGH S T FINC HLEY ROAD CAMB RIDG E H EA TH RO AD CA MB RID GE H EA TH R OAD BETHNAL GREEN ROAD HACKNEY RO AD GR OV E R OAD GR OV E R OAD WICK RD HIGH ST REET HIGH ST MARE ST W ELL STREET AMHURST R OAD CASSLAND ROAD GRAHAM ROAD V IC TO R IA PA R K R O A D DALSTON LANE MARE S TR EE T DALSTO LANE KE NWOR THY R OAD LEY TON RD GR EAT EASTER N RD CK RD EAS T C ROSS ROUT E M ILE EN D RO A D BOW ROAD BOW RO AD HOM ERTON HIGH STREET
DALSTON LANE
BALLS POND ROAD
ST PAUL’S RD ST PAUL’S ROAD HOLLOW AY ROAD HIGH BURY G ROVE KENT ISH TO WN R OAD HAV ERST OCK H ILL HA VERSTO CK H ILL VICTO RIA PAR K R OAD EA ST C RO SS R OUTE EAST CROSS ROUTE EA ST C ROSS RO UTE EASTWA Y BLACKWAL L TUNNEL NO RTHERN APP ROACH MA RE ST U P HILL FINC HLEY ROA D ST JO HN'W OOS D ROAD EDGWARE ROAD GLOUC EST ER PL BAKER ST ROAD SUSSEX GARDENS CHAPEL ST MARBLE ARCH OXFORD STREET PEMBROKE RD BROMPTON TABARD ST BOROUGH RD TWR BR. APP TOWER BRID GE ROAD GLOU CESTER PL ACE BAKER STR EET CHE PSTOW
ROAD BISHOP'S BRIDGE RD PRAED STREET
EASTBOURNE TER
R PORTMAN SEYMOUR ST WIGMORE ST WRIGH TS LA SLOANE STREET EATON SQUARE RD WI LTON RD BROAD S'TUARY GT GEORGE ST PARL'T DA OR N OT GN INNE K LAMBETH BR LAMBETH WAT ERLOO ROAD D AO R S RAI RF KC AL B DA OR SR AIR FK CA LB PICCADI LLY WHIT EH ALL ST JAMES'S ST PALL MALL ETRAFALGAR NORTHUMBERLAND AVE STRAND HA YMARKET CHA RING WATER LOO BRIDGE KIN GSW AY NE W LA NEWGATE ST EG DI RB S RA IR FK CA LB SOUTH WARK BRIDGE LONDON BRIDGE LEMA N STREET CAVENDISH PO RTLAND PL ACE NEW OXFORD ST GOWER STREET SQUARE SOUTHAM PTON BLOOMSBU RY WAY THEOBALD'S KING LONDON MOO RGAT E WICK KENSINGTON GORE EAR LS C OURT RO AD OLD BROMPTON ROAD FUL HAM ROAD KING’S ROAD KE NS IN GT ON C HU RC H S TR EE T NOTTING HILL GAT
E PE MB RIDGE RD PEMB RIDG E VIL LAS EDGWARE ROAD W E ST W A Y W ESTWAY W ESTBOURNE GROVE HARROW ROAD K N IG H T S BR ID G E HAR ROW ROAD BAYSWATER ROAD SQ GATE CU M BERLAND LANE LANE PARK PARK GRO SVEN OR PL ACE ECCLES TON ST SQ PIM LICO RO AD STR EET EUSTON RD ST BOTOLPH ST MINOR IES MA NS ELL S TR EET BYW ARD ST TERR TOW ER HILL BUCKINGHAM BRESSEN . PL PALAC E ROAD MILL BANK AL BERT EMBA NKME NT WALW ORTH ROA D NEWI NGTO N BU TTS EL EPHA NT &CA ST LE OLD KENT R OAD GRANG E ROA D ST DRUID ST TANNER TOOLEY S T LA CRUCIFIX ST THOMAS STREET TOOLEY STR EET ST GEORG E'S ROAD LON DON ROAD NEW INGTO N CAUS EWAY GRE AT DOV ER S TREET LONG L ANE BORO UGH HIGH STR EET MA RSH ALSEA RD SO UTHW ARK BRIDG E ROA D STREET SOUTHWARK STAM FO RD STR EET WES TMINSTER BRIDGE ROAD YORK R D LAMB ETH P ALACE ROA D MILL BANK SQUARE PARK CRESCEN T ST ST REGENT REGENT ST REG ENT ST SQ ALDW YCH VICTORIA EM BANKM ENT NE W B RIDGE HIGH HOLBORN HIGH HOLBORN ST GILES HIGHST CROSS RD SHAFTE SBURY AV E ROW RUSSELL ROAD ROAD CLERKENW ELL HOLBOR N VIADUCT WALL ST GRAC ECHU RCH UPR THAM ES ST LW R THAMES ST CLIVEDENPL ST ROAD KEN NI NGTON RD
BOROUGH HIGH
ST ST ROAD ECCLESTON BR FARRIN GDON ROA D MA RYLEBONE M ARYLEBONE FLYOVER EATONGATE HOB. PL W EST CR OMWELL RD TOTTEN HAM C OUR T RO AD GOODGE ST PALL MALL BELGRAVE ROAD VAUXHAL L BRIDGE ROAD OXFORD STREET PICCADILLY VICTORIA STREET ROAD M ORTIMER BR OM PTON RD PARL IAM EN T ST JAMA ICA RD EAST SMITHFIELD ROYAL M INT ST SQ W ESTMINSTER BR PICC. CIRCUS KENSING TON HIGH STR EET THURLOE PLACE
KENNINGTON
LANE VICT ORIA E MBAN KMEN T BEVIS MA RKS BLOOM SBU RY ST STRAND ABING DO N ST ALDE RSGA TE ST FA RR INGDO N ST GRAY'S INN FARR INGD ON ROAD OLD STRE ET FINSBU RY SQ BETHNAL GRE EN RO AD GREA T EASTE RN STR EET ROAD ROAD CIT Y RO AD CU RTAIN RD TAVISTOCK SQ WOBURN PL EUSTON ROAD CORNER HYDE PARK GOSW ELL COM MERCIA L ST REET W HITECHA PEL HIGH ST ED WA RD ST BISHO PSGA TE HOUN DSD ITCH UPPER THAMES ST BERM ONDS EY S TREE T TOWE R BR IDGE ROAD SO UT HW ARK BRI DGE R OAD LAM BETH R OAD ST BUCK INGHA M P ALAC E SLOANE LW R SLO AN E ST SHOE L A SO U TH W A RK PARK ROAD ROTH ERHIT HE N EW ROA D
ROTHERHITHE NEW
ROAD LOW ER RO AD LOWER RO AD JA M A ICA R O A D RAYMOUTH ROAD RO TH ERHI TH E TUN NE L HAWK STON E RD EVELY N STREET WESTFE RRY ROAD WE STF ER RY R OA D BUSH RD BESTW OOD STREET TH E H IGH W AY TH E H IG H W AY CO M M ER CIA L ROA D CO M M ERCIAL ROAD W HITEC H APEL R OA D M ILE END R OA D BU RD ET T RO AD BU RDET T ROA D CO M M ERCIAL ROAD LIMEHO U SE LINK BUTC HER ROW BISH OPSG ATE ALDGATE HIGH ST GR EAT WE STE RN RD A101 ASPEN W AY WE ST FERRY ROAD WEST IN DIA DOCK ROAD
EAST INDIA DOCK ROAD
A1206 PRESTON'SRD
ASPEN
WAY
EAST INDIA DOCK RD
LIM EHOUSE LIN K BLA CKWALL TU BLACKW ALL TUNN EL BLAC KW ALL TU NN EL NO RTH ER N APPR OACH RD
NEW KENT ROAD NEW KENT ROAD
ICK GDNS
BAYSW ATER ROA D
BROMPTON
RD
CROM W ELL ROAD
CROM W ELL ROAD
KENSINGTON ROAD FE TT ER LA NE FETT ER M AN CHES TE R R OAD M AN CHES TER R OAD CHELSEA BRIDGE SEA GRAVE RD CH ELSEA EM BA N KMEN T CHELSEA BRI DGE ROAD KENNIN GTON PARK ROAD RED CLIFFE GARDEN S FIN BOR OUGH ROAD LILLIE ROAD KING’S
ROAD GROSVENOR ROAD
KENNINGTON LANE
BRIDGEFOOT WAND SWOR TH R OAD STH L AMBE TH R D DURHAM STREET KE NN ING TO N RD WALW ORT H R OA D GROSVENOR ROAD N IN E E LM S L AN E PARRY ST O LD K ENT R O A D NEW CROSS ROAD KE ND E R TS EVEL YN ROAD EVEL YN STREET CREEK ROAD HARLEYFOR D ROAD VAUX HALL BR QU EENS TOW N RO AD W AND SWOR TH ROAD EDITH G ROVE GUNTER GROVE K IN G 'S R O AD KING’S ROAD QU EEN STOW N RD WA NDSW ORTH BR IDGE RO AD PRINCE OF W ALES DR. FA LC ON SO UT H L AM BE TH R OAD NINE ELM S LAN E ASH BURNHAM RD CREM ORNE R D CH EYNE W ALKBRIDG E B A TT E R S E A P A R K RO A D QUEE NSTO WN ROAD W A NDSW O RTH ROA D ALBER T BR IDGE AL BERT B RID GE R OAD
CAM BERW ELLGREEN
GROV E LA NE CAMB ERW ELL NE W RO AD CA M BERW ELL NEW ROAD KEN NINGTON OVAL CA MB ERW EL L RO AD P EC K H A M R O A D ST OC KW EL L R OAD COLD HAR B O UR LA N E CHAMPIO N PARK BR IXT ON R OA D D E N M A R K H ILL BR IXTON RD M EDLAR ST. HARLEY FORD ST CAMB RIDGE RD BAT TER SEA BATT ERSE A B RID GE RO AD F U LH A M R O AD LATC HM ERE RO AD YORK RO A D A D N E W K ING ' S ROAD CLAP H AM ROA D CLA PHAM RO A D U L H AM R O AD F UL H A M R O AD EVELIN A RO AD LAUS ANNE ROA D PECKHA
M ROAD PECKHAM H ST QUEEN’S RD
Q U EEN’S R O A D NEW CROSS ROAD N EW CRO SS ROA D BLAC KHEATH R OAD
BLA CKH EATH H ILL HANOVER PK RY E L ANE LEWISH AM W AY AM ERSHA M R D LEW ISHAM W AY LOA M PIT
HILL THURSTON ROA
D LEW ISHAM RD LEW ISH AM RO AD BR OOKM ILL RO AD BROOKM ILL ROAD GREE NWICH HIGH RD GR EEN W IC H HIG H R OAD GREE NWICH S S T ROMNEY ROAD QUEEN STO H ILL RO A D WAND SW ORTH ILL DOG A D LANE HAM R YE LOAMPIT VALE MO LE GR EA T WES TERN R D A We S R OA D
Knightsbridge & Chelsea
Victoria
West end –
Mayfair
West end –
St Jame’s
Soho & Covent
Garden
Noho
West Fringe
North Fringe
Midtown
City Fringe
City
Southwark
Docklands
Marylebone TERN
BBon RD CECov
rde
HARIve
CROSS SBU AVE ING CCR BURY Aennttt
RYY TEN HAM COO Eust S aquarreestonon EUSTON R RAASS PANC Kings C K rroosss SSt Panncrasa WHARFDA RD K PENTON PENTONVILLE Angel A GGOOSSWWEL ST tROAD OOMSBURY S T BLOOMSB ST HOLBORN y Lanee STREETET HOLBOR N VIADUC FA RR INNGG Farringdonon FF RO AD RO AD ARRINN GDON R N R R CLERKENW ROA ROAD ansion House UPPER WARKK HIGH STREE T LAN CAMBE RD C em yyyCITYRO AOAD Old Street CITY R EASTER EA OL STREE E OLLDDD S GGGGREAT E ET ET C OR EDITC RTRAIN R TT CU SHO R CU RO AD Hagger P CA MB GREEN L BIS COM MERCIA L Ald t STR EET C
oho
Ga
o & C
Gard
hoo &
Picc. Ci Cirrccusus NT STG
GGr PPALL MAL L MALL A M PPP ARKET ST–
As such, the trend for creatives and tech entrepreneurs to work from coffee shops on their laptops has evolved into a bankable business model. But the story is broader, and the result is a change to working environments across companies of all types and sizes.
Big businesses are beginning to realise the benefits of Coworking and Activity Based Working. With nearly 80% of employees already using their personal devices at work, the British Council for Offices states that organisations are becoming less concerned with providing dedicated desk space than being flexible to accommodate new technology.
It can be seen globally that young talent wants to work in vibrant city districts and busy hubs that combine offices, retail, arts and culture, and residential areas. Future Financial Workplace (a recent research report by DTZ that involved interviews with 100 leading real estate, facilities, technology, hR and workplace professionals) recognised that “As competition for skills increases, and large corporations start to compete directly
invest significantly in their workplaces and workplace technology. They will offer better working environments and more flexibility, in the same way the technology industry has done in the past ten years”.
Companies including Bank of America Merrill lynch, Macquarie Group and Deutsche Bank have already been proponents of Activity Based Workplace design. These companies and others recognise the evolving requirements of today’s workers and are providing radically progressive workspace to facilitate the flexible approach to work that is becoming the new norm.
landlords and conventional serviced office providers also recognise the bankability of Coworking and Activity Based Working. In June 2014, British land announced it was partnering with Regus to open Third Place business hubs at three retail properties across the UK.
New Coworking ventures can also be seen in Tokyo, where The Share offer accommodation to young professionals in single buildings containing apartments,
Coworking providers have helped to bridge the gap between what many workers and small businesses want, and
what conventional office landlords are able to offer.
As competition for
skills increases, and large
corporations start to compete
directly with media and
technology companies to
attract young talent, they will
start to invest significantly
in their workplaces and
workplace technology.
They will offer better work
environments and more
flexibility in the same way the
technology industry has done
in the past ten years.
FUTURe FINANCIAl WORKPlACe, A RePORT By DTZ
Coworking Space at The Office Group in Shoreditch
The implications for
CORPORATES AND fLExIBLE WORKING
BANK Of AMERICA MERRILL LYNCH
The organisation believed that by adopting smarter and more agile
methods of work they would greater satisfy and motivate their
own staff which would aid retention and attraction, but also offer
productivity gains and reduced spatial requirements. Investment
in technology was a key part of this, particularly communications
technology: teleconferencing facilities and mobile-working
enablement, the introduction of the BlackBerry smartphone with
remote access, and the set-up of video phones to enable colleagues
to collaborate in ‘face-to-face’ style interaction. Flexible desk
space was introduced to help transform the working environment.
According to Sheana Barrett, Co-head of employee Relation and hR
at Bank of America Merrill lynch, “smart working is broader than
flexible working, it is an approach to how we organise our work in
order to provide staff with a greater level of connectivity”.
1
MACqUARIE’S BANKING AND
fINANCIAL SERvICES GROUP (BfS)
The business moved 3,000 people
into a new Activity Based Working
environment in Shelley Street, Sydney. After
implementation, they recorded several
benefits: nearly 55% of employees now
change their workspaces each day, 77% are
in favour of the freedom to do so, and there
has been 90% employee satisfaction since
the move. The greatest business benefit
Macquarie Bank have realised from Activity
Based Working is the elimination of ‘churn’
— the cost of moving groups and redefining
spaces — with nothing spent on churn in
the company’s two-year occupation.
2
DEUTSCHE BANK
In 2002 the organisation started to introduce ‘db Smart Office’ – a new way of working within the organisation that
provided a wide range of work settings to support the full range of working tasks, from collaborative team space to
heads down working areas. The aim of the new way of working was to help promote multi-functional use of office
space, encouraging communication, flexibility and privacy. Deutsche Bank have measured a number of benefits, both
qualitatively and quantitatively. These include reduced occupancy costs due to reduction in spatial requirements
projected to be between 10-30%, recouping of associated project costs within only 24 months due to savings made as a
result of db Smart Office, improved employee productivity at work, improved technology in the workplace, and ability to
increase employee populations without additional real estate expenses.
3
In the US, Vornado Realty is thinking even more broadly: the ReIT is partnering with Coworking provider WeWork to redevelop an office building in Washington into residential apartments designed for mobile and collaborative workers. Not only will this enable professionals with in-demand skills to live in the centre of town, nearby businesses will have the ability to utilise workers living on their doorstep. It is therefore becoming increasingly apparent that Coworking and Activity Based Working models are able to provide holistic solutions that apply to both the residential and office markets.
Partnerships with Coworking providers can be valuable in less tangible ways too. In london, The Office Group recently acquired 20,000 sq ft of office space at One Pancras Square in King’s Cross. Nick Searl of Argent (the Development and Asset Manager at King’s Cross) comments “The Office Group provides high quality workspaces with a clear emphasis on design, and so is a perfect match for King’s Cross. [This] underlines the area’s credentials as a business destination and will help to make King’s Cross even more accessible to a broad range of firms”.
Place making is aided by small, new businesses that contribute to the buzz of areas like King’s Cross. But it is only when landlords lease offices to Coworking providers that they become associated with exciting new entrepreneurs, without exposure to the limited credit histories and unsubstantiated covenants involved in dealing with them directly.
it is becoming
increasingly apparent that
Coworking and Activity Based
Working models are able to
provide holistic solutions that
apply to both the residential
and office markets.
RIChARD hOWARD,
An expert view from
valuation advisory
When landlords lease offices to Coworking providers they can become associated with
exciting new entrepreneurs, without the risk of direct exposure to their limited credit history and
often unsubstantiated covenants.
Lettings to companies who operate as Coworking businesses are usually well regarded as the
properties are normally always maintained to a good standard. more often than not the Coworking
provider will take a long lease (in excess of 15 years), due to the set up cost and the longevity of their
membership based business plan.
For valuation purposes, getting comfortable with the provider’s covenant is key. if the company has,
or is, successfully running similar operations out of other premises then this will provide additional
comfort that the occupier can make a success of the business.
other considerations include the location of the premises and the current state of the leasing
market. As rents and business rates rise, there is a greater likelihood that Coworking providers
will benefit as the relative cost will seem attractive, especially to small or start up companies and
independent workers.
ADAM PATTeRSON,
Self employment and micro businesses are growing.
These groups incorporate millions of people and the
scale of their growth means many of them will contribute
to future demand for more flexible working environments.
2
The Coworking industry has grown significantly in the
past few years. This growth is a response to several
trends and the continuation of these trends should, for
several reasons, support the strong development of both
Coworking and Activity Based Working in the future.
1
Ultimately, workers of different types and industries
will come to see the office as a sociable setting from
which private places for concentration and confidentiality
are only occasionally sought. Traditional working
environments simply do not match these perceptions.
5
As part of the solution, big business is beginning to
incorporate Coworking and Activity Based Working
principles. Bank of America Merrill lynch, Macquarie
Group and Deutsche Bank have already been proponents
of this. These companies and others are increasingly
providing radically progressive workspace to facilitate the
flexible approach to work that is becoming the new norm.
6
The continued integration of technology into
every work place will enable workers to harness
services and devices in ways that support increased
flexible working across all sectors. More and more
workers will be able to work from the office, their
home, the coffee shop and their clients’ offices.
3
As younger generations move into the workforce
it has become apparent that their expectations
differ from those of older generations. Studies
have found that as many as 74% of Millennials
want flexible work schedules, and as many as
88% favour the kind of collaborative culture
offered by flexible working environments.
4
landlords and conventional serviced office
providers are also beginning to recognise the
bankability of Coworking and Activity Based
Working. Third Place business hubs are opening
across the UK, and new ventures across the world
indicate that the model is being extended to provide
solutions to both working and living arrangements.
7
If just 1% of home workers signed up for
Coworking membership, a minimum of 2.1
million sq ft would be required to satisfy demand.
If just 1% of micro businesses took out Coworking
membership for their employees, a minimum 3.9
million sq ft would be required to satisfy demand.
9
According to the government’s 2013 Business
Population estimates, micro businesses
employ 7.8 million people across the UK and,
according to the Office for National Statistics,
there are 4.2 million home workers in the UK.
8
As such, the Coworking industry has the potential
to grow significantly. The ways in which Coworking
providers and landlords react to increases in demand
will determine their place in tomorrow’s market.
10
Contacts
Toby ogden
Head of Central London Tenant Representation
+44 (0)20 3296 4417 toby.ogden@dtz.com
SopHy MoffaT Central London Research +44 (0)20 3296 2156 sophy.moffat@dtz.com
CRAIG NORTON
Head of West End Agency +44 (0)20 3296 4620 craig.norton@dtz.com TOM WILDASH Director +44 (0)20 3296 4619 tom.wildash@dtz.com NAOMI CHARLTON Director +44 (0)20 3296 4623 naomi.charlton@dtz.com
WEST END AGENCY
ALISTAIR BROWN Head of City Agency +44 (0)20 3296 2007 alistair.brown@dtz.com JAMES OLIvER Senior Director +44 (0)20 3296 2004 james.oliver@dtz.com JONATHAN HUCKSTEP Senior Director +44 (0)20 3296 2006 jonathan.huckstep@dtz.com
CITY AGENCY
RiCHaRd HowaRd
Head of Central London agency +44 (0)20 3296 4616
richard.howard@dtz.com
TiM pLuMbe
Senior director, Central London agency
+44 (0)20 3296 2005 tim.plumbe@dtz.com
RICHARD YORKE
Global Head of Occupier Research +44 (0)20 3296 2319 richard.yorke@dtz.com HAYLEY ARMSTRONG Research Analyst +44 (0)20 3296 2069 hayley.armstrong@dtz.com TAMáS POLSTER Head of Consulting EMEA +44 (0)32 2629 0258 tamas.polster@dtz.com
RESEARCH AND CONSULTING
ADAM PATTERSON Director, valuation Advisory +44 (0)20 3296 4461 adam.patterson@dtz.com
vALUATION ADvISORY
Definitions
Coworking describes any situation where two or more people are
working in the same place together, but not for the same company.
Activity Based Working to design your office in such a way that it
supports work activities optimally, rather than drawing a boundary
around its user’s personal spaces.
Generation Y the demographic cohort following Generation X, there
are no precise dates when the generation starts and ends. Researchers
and commentators use birth years ranging from the early 1980s to the
early 2000s.
Micro business a business with no more than nine employees.
Third Place (or third space) the social surroundings separate from the
DTZ is a global leader in commercial real estate services providing occupiers, tenants and investors around the world with a full spectrum of property solutions. Our core capabilities include agency leasing, tenant representation, corporate and global occupier services, property management, facilities management, facilities services, capital markets, investment and asset management, valuation, building consultancy, research, consulting, and project and development management. DTZ manages 3.3 billion square feet and $63 billion in transaction volume globally on behalf of institutional, corporate, government and private clients. Our more than 28,000 employees operate across more than 260 offices in more than 50 countries and proudly represent DTZ’s culture of excellence, client advocacy, integrity and collaboration.
@DTZUK
For further information, visit: www.dtz.com/uk
