Why firms need the right space to succeed

There’s an overwhelming assumption that growing and ambitious businesses – and primarily those in fintech or the creative sectors – are drawn to co-working spaces, where the promise of free beer and regular networking events with like-minded individuals will spur their companies on to great success.

For some this is undoubtedly true, but there is a high proportion of fast-growing enterprises employing between 20 and 70 people that have outgrown these spaces and now need something new.

For these businesses, quality office space is high on the “request” list for employees. When starting a new business or driving it through a high-growth phase, employees can be spending a large amount of time in their offices.

This is not to say that they’re tied to a desk however, and a range of options for engaged working such as stand-up desks, break-out spaces or meeting rooms with media or VR capabilities are now in high demand.

In a recent report by Storey, the flexible workspace concept launched in June by British Land, 40pc of SME respondents claimed that having a communal break-out area for their own employees would help improve productivity.

With advances in technology enabling employees to move around the office and engage with their colleagues in new ways, SMES are now demanding more flexible workspaces, built to include dedicated break-out areas and supportive collaboration spaces for their workforce.

And while 69pc of the 500 decisionmakers Storey spoke to agreed that improvements to the design and layout of their office would significantly increase employee productivity, the functionality of the space was a key factor.

Thirty-eight per cent of these managers and leaders have had to deal with their internet going down in the last month, with 46pc facing slow internet in the same period. For any company this lack of connectivity can be incredibly disruptive, but for a young or fast-growing business the result can have a dramatic effect on productivity and, in turn, profit.

These factors can also play a large part in the attraction of new talent, and the offer of easy access to a ready-made campus of amenities and social options – as well as high-quality facilities such as bike racks, kitchens and showers – can be the difference between accepting a job and rejecting it. By taking space within a campus, companies are able to benefit from carefully curated environments where the external public realm, facilities and services are as well-designed and managed as the internal space, led by the skill and expertise of the likes of British Land.

Taking space in next-stage flexible workspace like Storey’s can also mean peace of mind for business owners, with opportunities for flexible leases, all-inclusive rates (including business rates, 24/7 access, utilities, service charges, cleaning and furniture), and the ability to design and brand their own space.

It’s not only smaller enterprises that are seeking alternative workspaces. The rise of disruptive SMES has forced major players to diversify, and many have launched dedicated R&D arms and project-based initiatives, which have very specific requirements that differ from their core businesses.

These large firms are demanding agile workspaces with inbuilt flexibility in leasing structures and physical space, but with the quality of service and supporting amenities that a major corporate is accustomed to.

For many, co-working space simply isn’t an option – these more developed businesses require privacy and larger floorplates than most co-workspaces can offer – and their existing office doesn’t support the needs of wider project-led initiatives. For example, multinational retailing company Kingfisher has taken 25,000 sq ft at 2 Finsbury Avenue at Broadgate, as the first occupier of Storey.

Currently based at Paddington Central, Kingfisher sought flexible space for its digital arm and 2 Finsbury Avenue enables employees to access the same level of shared facilities and amenities as their main office, including the retail and leisure options afforded by a campus setting, but within a dedicated and fully agile environment.

Ultimately, for companies to succeed, they need the right space to support the well-being, productivity and engagement of their employees, be that co-working, traditional office space, or the new class of next-stage flexible workspace.

‘SMES are demanding more flexible workspaces, including break-out areas’