Businesses are becoming savvier in their approach to workspace, which will see the demand for flexible working only increase in the coming years.
This is the view of Headspace Group MD Fabrizio Nicola-Giordano, whose comments come ahead of BusinessCloud’s ‘Is London’s Tech Property Bubble about to Burst?’ event on 31st October.
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The group runs start-up spaces in Manchester and London and is soon to be launching a 36,000 sq ft space in Birmingham.
Founded in 2013 with the mission of creating inspiring workspaces in which businesses can thrive, Headspace provides thriving scale-ups with an alternative to onerous five-year leases, bland serviced offices and noisy co-working spaces.
“Flexible workspace now makes up around a fifth of all commercial property leases in London,” Nicola-Giordano told BusinessCloud.
“I think there’s a way to go before such spaces outnumber private offices, but we definitely see scope for a lot more growth in the market.
“Ultimately there’s been a change in attitudes towards workspace and I think that change is around to stay.
“Businesses have become savvier with the way that they use their real estate, which is why we’ve seen a big rise in things like home and flexible working, as well as co-working.”
Thanks to this shift in mindset, it’s no coincidence that the capital also happens to have one of the world’s largest markets for co-working says Nicola-Giordano.
“London tenants are sophisticated, demanding, often at the cutting edge and, given the relatively high cost of property, looking to get the most that they possibly can from their workspace,” he said.
The young company is clearly doing something right, boasting an array of businesses of all shapes and sizes amongst its membership, including Buzzfeed, Move Guides and General Assembly.
“Buzzfeed and General Assembly were two of our earliest members and getting them on board at such an early stage was a major win for us,” said Nicola-Giordano.
“They’ve now moved on but our tenants continue to range from fledgling start-ups to tech unicorns and even PLCs.
“Bigger businesses use our spaces in order to work in a beautiful, modern environment, attract the right talent, network and collaborate with the right people and enjoy the flexibility that spaces like ours offer when it comes to lease lengths.”
One of the reasons for the company’s success is its focus on the community aspect of co-working, offering a dedicated community team who arrange a variety of events from yoga classes and comedy nights to panel discussions on the business issues of the day.
Next, the company has its sights on a Birmingham workspace, which is due to open in January 2019.
“We’re getting very excited about the new space,” said Nicola-Giordano. “Our plans are pretty straightforward: we’re looking to create an environment where local businesses can thrive in a beautiful, community-driven space and with total flexibility.
“As Britain’s second city, Birmingham has long been an entrepreneurial hotspot and it was an obvious next step for Headspace.
“As its growth continues, the city is attracting more and more businesses away from the UK capital.
“From HSBC’s relocation of its head office back in 2011 to rumors that Birmingham is top of the list for Channel 4’s new home, big firms moving staff outside of London are boosting development in the UK’s second city.”
On top of this, demand for flexible and co-working space across the UK’s regional cities more than doubled last year, with Manchester and Birmingham enjoying the biggest increases, says Nicola-Giordano.
“As Birmingham’s office space evolves from traditional to a modern, more flexible model, it will make the city more attractive to start-ups and corporates alike,” he said.
“We’ve already had a lot of interest in this new location, including one of our Manchester clients who is expanding to the West Midlands.”
BusinessCloud’s event ‘Is London’s Tech Property Bubble about to Burst?’ will take place on Wednesday 31st October from 5-7pm in London.
The event will shine a light on the capital’s tech property space and ask what the future holds. Speakers at the event include: Cal Lee, global head, Workthere; Natasha Guerra, CEO, Runway East; Leigh Brody, chief scientific officer, Desktop Genetics; Jonathan Weinbrenn, managing director, BESpoke; Ritam Gandhi, founder, Studio Graphene; Kym Andrew, CMO, Wayra; and Ben Corrigan, co-founder and chief revenue officer, Pouch.
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You can book your tickets here and if you are interested in speaking at this event please contact [email protected]. For sponsorship opportunities email Helena Furness at [email protected].