Co-working and serviced offices spaces are not a new phenomenon. The concept has been knocking around for years and is an especially popular option for start-up tech companies who tend to expand at a rapid pace.
Although this type of arrangement is mainly targeted at start-ups and smaller businesses, we have started to see larger international corporations follow suit. As businesses continue to adapt to automation and the digital age, there is a need to adopt more flexible working arrangements for employees and a large part of this includes working space. I personally have noticed a strong uptake in employees taking on less traditional working arrangements, and serviced offices offer the perfect solution for workers who come and go on their own schedule.
Another driver for the growth in the sector is that serviced offices gives businesses the flexibility to grow their operations without having to commit to long-term leases and such arrangements are becoming more and more popular as the economy continues to grow.
CBRE in their Bi-Monthly Research Report have reported that there has been a notable increase in lettings to co-working and flexible office providers over the last 12 months, and they are increasingly seeing organisations introducing flexible working strategies to lower costs, improve employee engagement and increase productivity within their existing buildings.
In Savills’ recent Skyline Survey, it was reported that the amount of space let by landlords to serviced office providers in Dublin increased from 11,540 sq. ft in 2015 to 188,400 sq. ft in 2017.
With the success of co-working provider WeWork’s first Dublin location at Iveagh Court and the recent announcement of its anchor tenancy in One Central Plaza, there is no doubt that we will continue to see more and more companies offering alternative working arrangements appear across the city.
In Dublin 1, 2 and 4 alone CBRE estimates that by the spring of 2018, flexible office space totalled more than 300,000 sq ft.