Insight: Workspace

Workplace revolution means flexible office space is open for business

Hot-desking and flexible office spaces for hire are catering to a revolution in how the workplace functions

22 July 2018 - 00:00 By TANYA FARBER

You'd never guess to look at him, but the man sitting alone in a spartan glass-walled cubicle is an investment banker juggling transactions worth millions.
This is Paul Harrison, a member of a growing clan who need nothing more than a smartphone, a laptop and a rented desk to make their way in the world.
On his way into the office, Harrison greets a receptionist who answers the phone with several different greetings, depending on which line is ringing.
She is one of just a few full-time employees at a new 360-seat office in Cape Town's southern suburbs that provides flexible space in a world where mobile technology and hot-desking are replacing a hefty fixed cost for many businesses.
"To have an office just doesn't make sense, but I do need a space where I can focus and it is confidential," said Harrison.
"You have your network and your skill and your brain with you, that's all you need. A traditional office is just a big expense."At the V&A Waterfront in Cape Town, Workshop17 buzzes with millennials fuelling up on coffee and ideas.
Spaces, a company that offers flexible membership deals for work stations, experienced such high demand in Westville, Durban, that the owners had to add another building nearby.
In Johannesburg, Cube Workspace has increased its footprint to four locations, with another three in Cape Town.
It is no longer only freelancers, consultants and small start-ups that are hiring flexible space with shared amenities. Globally, large companies are choosing to share space, amenities and ideas.
WeWork, a global provider of flexible office space, attributes a quarter of its revenue to big business, while the number of multinationals adopting the trend has doubled since 2016.The International Workplace Group, which has a network of flexible office space around the globe - including the new Claremont facility where Harrison works - conducted market research in South Africa and abroad and concluded that a "tipping point" was coming.
Among the South Africans interviewed, 95% said a flexible workspace made employees more productive when on the move, and 89% said it helped their company maximise profits. Also, 82% said companies in their sector were opting for more pay-as-you-go business services.
In other words, they're turning to consultants and outsourcing rather than relying on full-time staff. Those consultants are then paying lower overheads by hiring only a hot desk or a cubicle as they move from client to client.
According to a survey by Flexjobs.com, half of all workers will be operating remotely most of the time by 2020, and IWG said two-thirds of South African office professionals worked remotely at least 2.5 days of the week.
"We are entering the era of the mobile workforce and it is hugely exciting - not just for individual employees, but for businesses too," said Mark Dixon, CEO of IWG. "This is a huge shift in the workspace landscape globally, and businesses are now looking closely at what this means for their corporate real estate portfolios."Manya Mooya, a University of Cape Town property studies expert, said flexible office spaces were part of the broader trend towards a sharing economy, which includes the likes of Uber and Airbnb.
Studies had shown that traditional offices were inefficient, with space unused for 40% to 60% of the time, he said. "Businesses that might otherwise be based in homes will find the flexibility and cost of these new spaces a very attractive proposition."
It is important, however, for providers of flexible office space to get it right. With more options popping up, customers move on if things don't run smoothly.
Michelle Solomon, an illustrator who hires a desk from time to time, said: "The best thing is being around other people and finding new business opportunities and collaborations. The worst thing can be poor management, and internet and printing issues."
Paying extra for parking sometimes pushed the cost up and made it less worthwhile, she said.
Neil Gopal, CEO of the South African Property Owners Association, said landlords were adapting to the trend. "The demand [for flexible office space] is there. I don't think the impact on commercial property owners is positive or negative - I see it as a change in the working environment to which businesses need to adapt."
There was evidence that "tenants and some landlords prefer this model", and "changes are being made to how the planning of spaces in the office environment unfolds", he said.Studies had shown that traditional offices were inefficient, with space unused for 40% to 60% of the time, he said. "Businesses that might otherwise be based in homes will find the flexibility and cost of these new spaces a very attractive proposition."
It is important, however, for providers of flexible office space to get it right. With more options popping up, customers move on if things don't run smoothly.
Michelle Solomon, an illustrator who hires a desk from time to time, said: "The best thing is being around other people and finding new business opportunities and collaborations. The worst thing can be poor management, and internet and printing issues."
Paying extra for parking sometimes pushed the cost up and made it less worthwhile, she said.
Neil Gopal, CEO of the South African Property Owners Association, said landlords were adapting to the trend. "The demand [for flexible office space] is there. I don't think the impact on commercial property owners is positive or negative - I see it as a change in the working environment to which businesses need to adapt."
There was evidence that "tenants and some landlords prefer this model", and "changes are being made to how the planning of spaces in the office environment unfolds", he said...

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