“Before we chose these chairs, I brought in three different suppliers, 10 different chairs, and created a list of pros and cons for each one.
“These are just the chairs for the meeting rooms,” says Labs chief operating officer Dotan Weiner.
In sharp contrast to WeWork’s rapid expansion – with the US co-working giant having just announced its third UK city launch in Edinburgh this month – Labs is all about evolving slowly.
The flexible workspace business is part of Israeli billionaire Teddy Sagi’s wider LabTech group, which encompasses a 2m sq ft property portfolio across offices, retail and residential.
Valued at more than £3bn, the assets stretch across Holborn, King’s Cross and Camden in London and Tel Aviv, in Israel. However, only around 40% has officially opened so far.
Just 280,000 sq ft is currently converted into Labs flexible workspace, but Weiner says the plan is to nearly double this over the next 12 months.
In contrast, WeWork has already leased more than 3.4m sq ft of London office space, according to Radius Data Exchange, making it one of the capital’s largest occupiers.
LabTech offers customers a mix of offices, serviced apartments and retail spaces for between £400 and £1,000 per month.
Part of the reason for the stealthy expansion is that the firm owns all of its real estate.
Weiner says: “It is more difficult when your main business model is that you buy the buildings rather than lease them. We have to think of a long-term strategy before we purchase any building.
“Our expansion is much more measured than WeWork.”
He says the firm is currently experiencing a rise in demand from occupiers at Camden Market who are seeking additional over-spill space.
For example, Dr Martens recently leased 2,000 sq ft in offices at Labs Triangle in Camden Lock Market.
This is likely to continue, says Weiner, as LabTech, which owns Camden Markets, intends to open a 580,000 sq ft mixed-use scheme, Hawley Wharf, by the summer.
The development will host 150 independent and branded stores, more than 60 new places to eat, 195 flats, as well as 60,000 sq ft of Labs co-working space.
At the other end of the spectrum, LabTech is looking to attract larger occupiers, having just launched Labs Enterprise, which offers workspace to firms with more than 50 employees.
One of its first tenants is law firm Slater and Gordon, which took on almost the entire fifth floor at its base at 90 High Holborn, WC1, in February.
The 186,000 sq ft building is Sagi’s most expensive central London acquisition to date with a price tag of around £200m.
He bought the building from Malaysian sovereign wealth fund Permodalan Nasional Berhad. Around 40% of the building is occupied by traditional leaseholders, while 60% will be occupied by members of Labs.
Currently the Labs portfolio includes seven properties in Holborn and Camden.
As well as 90 High Holborn, it includes Labs House on Bloomsbury Way, WC1, a 96,100 sq ft building, which launched last month.
Sagi bought it in February 2018 for around £70m from insurance firm Bupa Health.
The workspace includes an event space, a gym, a quiet room, a games room and a food and beverage operator, while 30% of the building is made up of communal areas.
Going forward, Weiner says Labs is likely to open in other parts of London as well.
“We are looking into other locations and doing some research into where we want to grow and why.
“It will be somewhere between Holborn and Camden. We want to centralise our operations to provide a better service. We are looking at Fitzrovia and King’s Cross.”
Beyond London, he says the firm is interested in expansion but there are no current plans for openings elsewhere.
A more pressing plan is to build up a strong residential portfolio, starting with its flat scheme in Camden.
Weiner says it is also considering launching apartments in Holborn and King’s Cross.
Ultimately, he says, the plan is to “influence the neighbourhoods” the firm operates in as much as possible.
“The more buildings you own, the more you can influence the area. Opening serviced apartments in Camden will help us do this and that combines well with our Labs co-working service.”
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