Desk space at a premium for small start-ups
A rise in start-up companies and the move towards a gig economy is fuelling a significant growth in demand for offices at the smaller end of the scale.
One-desk offices in co-working spaces are sought after by consultants, contractors and freelancers working on short term contracts, as well as business start-ups.
Figures from Flexioffices, an office space agency, show that inquiries in Scotland for one desk spaces has been steadily increasing over the past four years.
Availability of such work spaces is crucial to the growth of the economy.
Single desks in co-working spaces can be 50 per cent cheaper than a de skin a private office so they are an important part of keeping costs low for a start-up, but the supply of such small-scale working environments has not kept pace with the demand.
Flexioffices’ figures show that while Edinburgh has seen a growing trend in one-desk inquiries – from 16 per cent of all inquiries in 2014, to 28 per cent last year – it is Glasgow which is experiencing the biggest supply shortfall.
Over a third of all inquiries to Flexioffices in the city in 2017 were for one-desk spaces.
Savills also warns that startups and small businesses in Glasgow are struggling to find suitable work spaces.
According to Startup Britain the private sector-funded campaign for entrepreneurs, 7,845 new businesses launched in Glasgow in 2017.
Jacqui Morton, an associate in the business space team at Savills Glasgow, says: “Glasgow is a city people want to work in and (where) businesses want to base themselves, and it is important we support these businesses and allow them to grow through the provision of suitable and affordable office accommodation.”
A lack of options is pushing occupational costs up, with rents on lettings in the 1,0002,000sq ft size bracket in 2017 up on 2016 levels, with some deals on the best small space fetching in excess of £20 per sq ft.
Morton believes that landlords should consider subdividing office suites to cater for the demand for sub-2,000sq ft options which qualify for full small business rates relief.
She says :“this shortage combined with the increased rents being achieved makes a strong case for landlords to split larger 2,000 to 3,000 sq ft suites that are physically suitable.”
Demand from small businesses has helped give way to a rise in serviced office operators in Glasgow.
These include Nexus Business Space opening on West Regent Street, Spaces Charing Cross in Tay House on Bath Street and clock wise office son Renfrew Street – all of which have launched in the last 18 months.
Alister Gibson of DM Hall says that the Nexus project is a good example of space to fit a small but growing company’s needs.
The offices come in a variety of sizes, giving small businesses the same environment as much larger established concerns.
Tenants have full access to breakout spaces, business lounges and meeting rooms ,while fast connectivity comes as standard.
Gibson says that flexibility of lease is another huge advantage to such spaces.
“Long or short-term residencies [are offered] which can be terminated with reasonable notice if companies need to upsize or move on, so a company can grow easily within the same building.
“For example, from a onedesk operation, staff numbers can grow naturally without having to move.”
“It is important we support these businesses and allow them to grow”
JACQUI MORTON SAVILLS GLASGOW