Opening a new workspace during lockdown when swathes of the UK’s population have swapped the office for their kitchen table should be challenging, but for Mindspace co-founder Yotam Alroy, opening the firm’s 32nd location in Patrizia AG’s Metro building in Hammersmith went “very smoothly”, all things considered.
There was just a small delay in opening – the hub was up and running by July, instead of June.
Alroy says that despite the impact that coronavirus has had on the offices sector, the location of Mindspace’s latest London addition could not have been better placed to withstand the effects of a pandemic.
“If I had to choose a location in the midst of the pandemic, I think by luck, it was a good location to go for because it’s not in the middle of everything,” he says, adding that it provides a convenient workplace for those looking to avoid a commute into central London.
Suburbia and the city
Other flex space heavyweights, such as IWG chief executive Mark Dixon, certainly seem to think suburbia could be the key to the future of flex space. Dixon announced earlier this week that the company had seen a spike in interest for space outside big cities, and that the interest for more local workspaces “has gone off the charts”.
But Alroy is more sceptical about claims of a city exodus. “I don’t think there will be a crucial move outside the city,” he said. “London is an amazing city – why live outside?”
It will be the younger generation, says Alroy, that keeps cities alive. “If you asked me if I believed the CBDs will go to the suburbs, I don’t think that way,” he says. “I think the CBDs will stay CBDs, and when we get a vaccine, people will want to go back to their old habits. Maybe it will not come back 100%, but the vast majority of the people, especially the younger generation, will try to go back to almost everything as usual.”
He says that while flex space operators and landlords may be eyeing up the suburbs as a burgeoning market, Mindspace is staying put in the city.
Adjusting to the new normal
With Boris Johnson putting pressure on companies to return to the workplace, it seems that the return to the city will be inevitable, even though it is expected workers will spend less time in the office than before Covid-19.
This has meant Mindspace has had to work hard to ensure that members feel as safe and comfortable as possible returning to the workplace. The company has launched an app allowing its members to book rooms, order food and refreshments, and even book in for a yoga session or two. It means that human contact is kept to a minimum, while members can still use and access space and facilities as much as usual.
“Instead of us receiving emails or calls from members, everything is in one place, it’s easy to use and for us easy to address [issues],” says Alroy. He adds that the company is hoping to glean insights from data in the app to better run its services.
“It gives you operational insights, how to operate the location in an efficient and smarter way,” he says.
Has the app helped to boost footfall into Mindspace locations as a result? “I can’t say people will go back to the office because of the app,” he says. “I think people will go back to the office when they feel it’s a safe place, when they feel they are not at risk.”
These concerns are something that landlords must work hard to address, recent research shows. According to a survey by proptech company Equiem, 60% of occupiers will not return to the workplace until it “feels safe” to do so. This is having a huge impact on footfall: nearly three quarters (72%) of office buildings have less than 10% occupancy levels, while 17% reported that occupancy rates were between 10-20%.
So how do you create that feeling of safety in workspaces? Alroy hopes that the app will help solve the problem, as well as ensure that safety protocols are constantly monitored and maintained in Mindspace’s locations.
The flex space opportunity
“What I’m hearing from most members is that they want to come back to work ASAP,” says Alroy, although he thinks working from home will be here to stay in some capacity.
Some companies have signalled that permanent home working could be the way forward. Twitter and Siemens have told staff that they can work from home permanently, while financial giants such as Lloyds and Barclays have signalled they will be slashing their office footprint in anticipation of a growth in working from home practices.
Alroy remains adamant that these are knee-jerk reactions. “Staying at home for good, like Twitter has been announcing, I can’t believe that will fly and I don’t believe that will be the norm,” he says. “I think the new normal will be a combination of somewhere between working from home and the rest in the office.”
This presents an opportunity, he says, for the flex space sector. With companies figuring out their long-term office strategies, why not turn to the flex office option? “Why keep an office on a long lease for three days a week?” he says.
Listen to the full interview here:
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