An interview with a serviced office expert

WorkWell on December 11, 2013

There’s no doubt that the serviced office market is a vibrant and dynamic one. But is there really a clear picture in anyone’s mind as to where the industry is going?

In an interview with Carrwood’s own Oliver Corrigan, we explore not only the current state of the serviced office market, but also the future of serviced offices and other issues surrounding the industry as a whole.

1.    In the years you’ve been in the serviced office industry, what are some of the most significant ways you’ve seen the industry change?

Firstly, I would say that it has matured as an industry. In the beginning, it was more like a stopgap solution for start-up companies and other small businesses, but now a lot of blue chip and large companies use it as an effective way to keep overheads low and flexible. So essentially what we’ve seen is the industry shift from being dominated by owner-managed enterprises to now being shared between these and corporate structures.

Another key area of development is the addition of value-added workspace. The product offered by serviced office enterprises has become much more complex than just a simple desk area or meeting room. Innovations in furnishing and space have given rise to break-out areas, brainstorming areas, informal meeting spaces and much more. Serviced offices are now about providing a fully comprehensive space in which to work, meet, discuss and develop business.

2.    Since 2008, the British economy has seen a decline in the majority of sectors. Despite this, serviced offices continue to prosper and grow – why do you suppose this is? Can this growth be maintained?

Before the recession hit, the truth is that a lot of companies never really had to consider “value for money” as a factor in choosing a workspace. More often than not, companies just went with the most obvious solution before them, regardless of long-term cost considerations or real value for money.

The recession hit and it exposed not only financial weakness in some companies but also their inability to flexibly react to market changes. In serviced offices, people are renting more than just a bit of office space. They are also getting the flexibility to expand and contract as market strength and size dictate. In the post-recession climate, all companies are now being forced to see this huge difference and see that demand isn’t static and therefore they will need to be flexible to react to shifting demand.

Another factor to consider is the trend of manufacturing operations being shifted overseas, which is freeing up a lot of space that used to be factories, warehouses etc. This empty space would still need to be managed and maintained, which increases the burdens on the companies running them. This makes the serviced office sector all the more appealing, as all aspects of building management and maintenance are hired by the host enterprise. It’s no wonder then why many more companies are opting for serviced offices, prompting industry growth.

Companies save on costs and boost flexibility, but without sacrificing prestige and image. Despite what some may have previously thought about serviced offices, it is not a step backwards for a company to take one. In being able to focus entirely on their work operations, companies free up time and resources to attract more talent. You could compare it to the tablet PC, which while having a bigger price tag despite fewer parts, gives users vastly more flexibility through its portability and multifunctional nature, thus giving it incredible value. Serviced offices have the same advantages over regular office space or leased space.

Can industry growth be maintained? I certainly think it can be. Property prices are on the up, and therefore rents are also going up. We are entering a world of globalisation, populated by a more highly educated workforce that is split into small dynamic teams. The serviced office product is there and designed to meet these changes. As long as the industry can stay current, it will grow.

One more factor that helps maintain the growth of the industry is IT infrastructure. IT demands are growing massively, and becoming more complex. At Carrwood, we’re running 60,000 square feet of office space, but individual companies are getting smaller. We have invested tens of thousands of pounds in IT systems for our business park – a financial burden a lot of individual businesses do not want to shoulder alone due to the lower number of staff employed in one area. It gives companies yet another reason to choose serviced offices, as it allows them access to the IT infrastructure viable for hundreds or thousands of staff in a remote 6-person sales office. In fact we have a lot of MDs saying that their IT solutions in their branch office at Carrwood are better than their head office down in London.

3.    Can you summarise in one sentence, what you believe is the primary function of the modern office?

To provide a good, central work location where people can focus, collaborate and develop.

4.    Sustainability seems to be one of the most prominent focuses now in serviced offices. How important do you think it is to the industry overall? What steps have you implemented to generate sustainability?

Sustainability is certainly something that frequently appears in people’s enquiries when looking for new office space. My family has always been involved in farming, which as a highly mature industry thoroughly understands the importance of long-term sustainability and eliminating waste. Carrwood’s competitors often cite all the ways they make their buildings eco-friendly – a green place for people to work in. But in my opinion, they’re looking at the issue the wrong way around. At Carrwood, we take the user’s perspective as the primary focus, not the building itself. It’s fine to put in green systems, but if you don’t have the in-house know-how of how to run and maintain them yourself, then the benefits are minimized.

For example, where many offices will turn their heating systems off over the weekend to “save energy”, Carrwood would keep them running at a steady low constant. If the heating had been off all weekend, and an employee cranks it up to 24 degrees as soon as they arrive on Monday morning, then the system will run inefficiently and wastefully as it fires up. We at Carrwood would keep the temperature at a steady 18 degrees all weekend, so that when the user comes in they might only need to put it up to 20, and in the long-term a greater saving is made.

5.    What’s more important currently in offices, location or quality? Do you think that this will change in future?

The adage “location, location, location” is massively dependent on the industry – I would suggest that quality is ever-increasing in importance, but one can’t ever deny the importance of location. It’s hard to gauge the tipping point between the two. Productivity of staff is more important – so the location must be tailored to maximise this. But location is diminishing in importance somewhat, as technology allows more and more locations to become viable.

Quality is not just a question of fixtures and fittings, but also about layout and know-how. Without the know-how, logic and experience to make a good set-up, then quality doesn’t enhance productivity. To enhance productivity, Carrwood uses workspace, meeting space and the all-important “third space”, such as our atrium, break-out areas and other spaces. These are all designed to give a wow factor and provide a productive environment.

6.    Turning to location specifically, there are those who argue that major cities like London, Manchester, Glasgow etc. will always be the office ‘hotspots’, do you agree with that view?

Leeds is a very dynamic and forward-thinking city and has frequently ranked in the top 5 UK for growth rate, best city for business and more. In 2009 it was awarded “One of Europe’s Top 25 Cities for Business”. It’s fair to assume that the top several UK cities will always be top, but HS2 and improving airport links might help shift the dynamic slightly. Technology will also help remove barriers and open up new areas for development. Also, those top cities will only ever remain “hotspots” if they also remain highly liveable. Without liveability, companies can’t hope to attract the best talent for their business.

7.    For many years now, technology has been a cornerstone of the productive office, and its importance and influence have only grown. In the coming years, what do you see as, say, the 3 most important technologies that no office can do without?

First, super-high-speed Internet connectivity. The world is using less bandwidth per device but the number of connections is increasing. Serviced offices need to be there to meet the changes. The increasing prevalence of HD and other technological developments will increase demand on capacity, and so  faster Internet will definitely be totally indispensable.

Second, Wi-Fi. It needs to be as secure and reliable as hard-wired Internet, and Carrwood is currently investing in new networks to be just that. At any one time, we can have over 170 wireless devices connecting to the network in just one building, with around 120 permanent customers. This is a radical change from 5 years ago when there was only about 25-30% of that connection rate. Providing basic Wi-Fi isn’t good enough. It needs to be sophisticated enough to manage multiple connections and allow our customers the ability to tailor their own company policy despite there being others sharing the space. In 2014 we plan a big shake-up of exactly how we deal with this, allowing customer privacy and simplicity while at the same time flexibility and security.

Third, software allows collaboration and interaction by creating a new “digital space”. The integration of social and collaborative tools will go hand in hand with this, such as moving a monitor feed to a projector feed quickly and simply.

Finally, cloud technology is an extension of the serviced office. Part of our recent IT investment is designed to increase the efficiency of cloud computing in our spaces because people are carrying multiple devices now and cloud computing is what gives seamless integration of data and other information.

8.    Can you offer some kind of summarizing ‘prognosis’ regarding the future of the serviced office? What’s going to be the single most important direction that we’re going to see?

The industry is still young but has matured rapidly in recent years. It will continue to mature with more products coming out and will adapt to how businesses want to work. The way I see it, the sector will only grow. It allows customers to increase their space in a dynamic way that gives flexibility to meet new market/customer demand.

 

Who would use a serviced office? (you’ll be surprised)

WorkWell on September 11, 2013

There’s the flexibility to grow, the convenience and the financial savings to name but a few. But who is it exactly that is reaping these benefits? You might think that serviced space is wrong for your business, and that there’s a specific type of company that they’re geared towards. If you do think this, then it’s clear you’re unaware of just how wide a range of enterprises that can benefit from using our facilities.

1) New businesses

Start-ups are the most obvious candidates and are commonly associated with using our space. They need the flexibility and cost-effectiveness of office space that won’t burden them with massive overheads, set-up costs. The correct business centres also provide a start-up with a prestigious address, access to top-notch facilities and the ability to really wow their clients when they visit. Most important to new businesses is that they can focus on just that  — the business — and not have to worry about things like building maintenance. More time focused on generating business and less time spent on changing light bulbs and maintaining fire alarms.

2) Small (but not necessarily new) businesses/lifestyle businesses.

There are some enterprises out there that, while quite small, have actually been around a number of years. Some of them may want the solid infrastructure of a physical space to call their own, and to be able to focus on what they enjoy — their work — but without all the hassle and stress of purchasing, running and managing their own premises. The best providers give this type of business the flexibility to stay small or expand and contract as their workload changes. When business is good, they can easily boost their staff and infrastructure to match it, and vice versa. Gone are the times when profits are eaten away by unnecessary overheads.

3) Short-term projects

Let’s say a company based in London wants to set up a new project in Leeds – where are they going to base themselves? Are they going to lease a whole building for the short time the project is underway, just so they have an office to call an HQ? No! With flexible contracts, serviced space is the perfect turnkey solution for this type of set-up, which would otherwise be lumbered with the costs of a new office fit out, legal issues and the rest of the cumbersome set of tasks and responsibilities that befall those setting up their own space.

4) Sales/Customer Service teams

In the digital age, even international companies can run their administrative operations from a single office. But sometimes, a regional customer service or sales centre is still a necessity. By using a serviced office, these companies avoid the need to hire reception or maintenance staff, and don’t even need to purchase equipment. The flexibility of the contracts in serviced offices means they can also “test” a market for sales numbers without the risk of signing a lengthy agreement that would tie them down to the area regardless of sales performance.

5) Large businesses wanting to set up new regional offices

When a start-up has grown into a large business over a number of years and has established its own headquarters, it knows all too well the costs and stresses of it all. When it comes to expanding the operation nationwide, serviced offices present the best solution to this problem. At WorkWell, we believe that it is highly cost-effective for companies to expand beyond 30 permanent staff members.

And so you see, users of serviced offices come in all sorts. The thing that unites all of them is the fact that they give people the ability to focus on the specific goals of their company, and give the perfect environment for employees and managers to focus on what they know best — their jobs. This type of safe, stable flexibility is invaluable to companies working to the stage where they can realistically look at leasing their own space.

Can you think of another business type that benefits from a serviced office? Let us know, and help us grow the list!

Over coming Setbacks

WorkWell on September 6, 2013

In 2008, a global recession ran riot in a seemingly unstoppable tsunami of despair, bankruptcy and unemployment. The world has known nothing like it on this scale for decades, and yet, amid the chaos, fury and relentless instability brought about, new businesses continue to emerge.

These companies are headed by entrepreneurs with a bold vision and a solid product/service that they have total confidence in. By 2013, some of these companies had, of course, failed, but then that’s nothing new – no matter what state the economy is in, companies start and fail all the time. There is, though, a crop of enterprises that have flourished where others have fallen, and their success lies in being able to overcome inevitable setbacks as they came up.

Applying a “DIY” principle to their work

In the early stages of a new business, it’s important to do as many of the required tasks yourself and not immediately delegate the work to others. The greater variety of important jobs you learn to do yourself, the greater the understanding you garner of how your business is really working. You can use this understanding to hire the best people for each job later, when you have the money, giving you efficiency and cost-effectiveness in your employees.

Being adaptable

What works in the first six months of your operation is not necessarily going to work in the six months following it. Circumstances will change, and no matter how thoroughly you plan each stage out, thing will crop up that force you to adapt and alter course. Being robotic and unable to adapt to sudden changes will eliminate you early on. Hold back reserve funds whenever you can to act as a “rainy day” fund, so that when you have to diverge from the plan, you’re ready for it.

Having flexible finances

When you’re starting out, it’s hard to get banks on board with what you’re doing. Using a method like Crowdfunding is becoming more and more prevalent among small businesses and start-ups. It involves getting individuals and companies to invest and own shares in the company. You can raise the money you need to fund marketing and advertising, which ultimately boosts sales. And once you’re up and running, do everything you can to keep costs and overheads flexible too, so that you can more easily respond to unforeseen changes or developments in the market.

Not taking no for an answer

Taking supermarkets as an example, they must receive dozens of new product ideas from entrepreneurs every month, and they’re going to say no to a lot of them. Take a bold step and show the buyers and directors that you have a real product you know they want, and not just ideas on paper. Send them samples; go there in person; don’t just rely on paper evidence.

Overcome the above issues, and your new business will have every chance of surviving the uncertain and sometimes choppy waters our business and economic world is in.

Ways to improve your company’s image

WorkWell on June 11, 2013

In a dog-eat-dog business world, projecting the right company image is absolutely essential. But you don’t have to spend money with a top marketing company to enhance your image! Here are some simple touches to give you a boost

Create a clean and consistent brand image.

Develop your company logo, business papers, stationery, packaging, and if possible, your interior office design to reflect a clean, consistent and professional image to your customers. This will show you as a steadfast, reliable partner that customers can trust and depend on.

Attend local and industry events

Attending local trade shows, charity events, and more is a great opportunity for you to publicise and promote your business. You can publicly demonstrate the benefits of your products and services to both existing and potential customers.

Test your online media

Besides developing and maintaining a stream of websites and online social media, it is vital that you perform regular checks on their usability. Put yourself in the position of one of your clients, and use the website features – does everything work smoothly? Only by displacing yourself and seeing things through a user’s eyes will you know how to optimise your website and social media.

Choose a prestigious, high-quality location for your offices

First impressions are everything, and one of the best ways to ensure a good first impression with new customers is investing in prime office space. Renting space at a top site like Carrwood Park will give you just that. Well-designed offices with comprehensive facilities will speak volumes about your company’s professionalism and success. And when clients see your address, you want them to be instantly impressed and keen to go there. Think about it, if you’re in a poor location where for example there is no proper air conditioning in summer, or not enough parking, how many clients are going to come and see you there?

Tell your ‘company story’

This is the age of reality television, and the fact is that people love real-life stories of hardship and success. Find an innovative and interesting way to tell your company story to the public to garner interest, respect and admiration.

There are literally dozens of ways for you to enhance your company’s image. Through location, consistency and community activity, you can communicate to customers the image of a truly successful and professional enterprise. Browse our site and see how we at Carrwood Park can help you along the way.

Go Green

A commitment to sustainability and reducing your carbon footprint is something to shout about, and it can establish your business as a responsible, ethical brand. It only takes a few new measures to start publicising your new ‘green’ status, and it can even save you money in the long term.

Interview with Peter Gannon at Invigor8

WorkWell on May 12, 2013

Invigor8 is an employee engagement consultancy that helps businesses focus, align and engage with employees in order to better achieve business objectives. Established for 15 years, they work both nationally and internationally, with consultants based across the UK.

Invigor8 needed a central UK hub from which to operate. They had previously been based in leasehold premises and had never used serviced or managed space before.

“Running the centre is their passion, and they really invest the time and effort personally into making sure everything is just right”

“We wanted to find a better location, closer to the motorway network. Carrwood Park first appealed to us because of its location, just a minute away from J46 of the M1. The South Leeds location offers excellent accessibility for our UK-wide clients and consultants, with London being just a couple of hours away. Manchester, Birmingham and the other major cities are also easily accessible.”

Invigor8 has been at Carrwood Park for a year now.

“Our main offices are in Carrwood 5. We have also used Carrwood 4 and Brookfield. We bring clients here from all over Europe, and we have received nothing but positive comments from them about the space. The central areas are managed very well, and all our events have always gone very smoothly. The superior quality of the offices here is brand-enhancing and suits our business needs perfectly.

We also really like that Carrwood Park is family-run, with a locally-based manager. Running the centre is their passion, and they really invest the time and effort personally into making sure everything is just right. Being able to meet and talk to the owners about our and their aspirations meant we could establish trust from very early on, knowing they would do everything they could to meet our needs. When we ask for solutions, they don’t give glib promises; they go away and find one.

At Carrwood Park, what you’re quoted is what you pay – there are no hidden charges. This has not been the case in many other places we have looked at, where additional fees are added on top of the quoted price.

Prior to moving in, we sat down with Oliver and explained what we needed from the space. Aside from our laptops and photocopiers, which we brought with us, Oliver sourced all the other furniture and office equipment for us to our exacting specifications.

 We have received an excellent all-round service from Carrwood Park, from helping us with move-in to the day-to-day running of the space. If our business needs remain the same, we would be very happy to remain here after our agreed contract period.”

Peter Gannon, Managing Director,invigor8

Carrwood Park Now Open

WorkWell on January 11, 2013

Carrwood’s newest business centre officially opened its doors on the 20th August 2012. Built to the highest standards, the first-class Grade A office space at 4 Carrwood Park combines a decade of construction and management knowledge to provide Carrwood’s most exceptional office space yet.

Having been open for twelve years, we’ve had a real variety of businesses which have moved in and made the most of the latest up-to-date technology, spacious offices and ready-built business community at Carrwood.

Carrwood’s characteristic atrium space has been given a unique twist, with the new Director’s Lounge at 4 Carrwood Park now situated on the first-floor landing, giving an elevated view of the entrance foyer. The space combines the versatile informal meeting areas that are a popular feature at all Carrwood business centres, offering excellent breakout and networking space.

Oliver Corrigan, centre manager, said:

“Over the last 10 years of managing commercial office space in Leeds, we have developed some of the highest quality offices and services available. Built from the ground up, this new business centre exemplifies what can be achieved when the highest possible standards in office building design are set.

As always, we have a dedicated team on hand to cater for your every need. Being a family-run business, we take pride in providing the ‘personal touch’ for all our clients. If you think our past projects have had the ‘WOW’ factor, just take a look at what 4, Carrwood Park has to offer.”

Features and services available at 4 Carrwood Park include:

  • Air Conditioning
  • Bike Racks
  • Superior Meeting and Boardroom Facilities
  • Super-fast Leased Line Internet Connectivity
  • Ample Car Parking
  • Personalised Call Answering
  • Flexible Terms
  • Fully Furnished Office Suites
  • Hot Desking
  • Meeting Rooms
  • Conferencing Suites
  • Team Collaboration Areas
  • Directors Lounge Area
  • Modern Spacious Surroundings
  • On Site Management Team
  • Open Plan Offices
  • Raised Access Flooring
  • Perimeter Trunking
  • Postal Facilities/Mail Handling
  • Reception Services
  • Telephone Answering
  • Training Rooms

With workstation speeds topping 20 meg for synchronised broadband, the unique online management system also gives clients super-fast broadband as standard, at no extra cost.

Anyone interested in booking a viewing should contact us at WorkWell, we’d be happy to arrange a visit to see if our serviced offices are suited to you.