Derwent London recently topped out the White Collar Factory, EC1, in London’s Tech Belt, the most exciting office scheme in the city since The Shard, SE1, or the Lloyds Building, EC3.
Arguably, the White Collar Factory captures more of the current age and represents the cutting edge of flexible office space in London at a time when serviced offices are playing an increasingly significant role in the London market.
The Office Group will take two floors and I look forward to seeing co-founder Charlie Green’s latest mix of great space and design when the White Collar Factory is completed.
It is worth taking a look around another of The Office Group’s locations, Henry Wood House in Riding House Street, W1. Check out the fabulous club room as well as the gym and library, and of course the co-worker and dedicated office space.
The design combines art deco and modern art – I particularly like the picture of McCartney and Jagger! For £300 a month you can become a club member and for £400 a month you access all The Office Group’s locations across London.
Alternatively, you could take a dedicated desk in an open office for £550 a month, or hire a private office for four people for £3,900 a month.
One cannot comment on London serviced offices without mentioning WeWork. Formed in 2010, WeWork has recently been valued at $16bn (£11bn) and is growing rapidly.
And so I continued on my serviced offices tour to WeWork’s Moorgate office, and entered an extraordinary flexible office world. Here, a dedicated desk starts at £425 a month, a shared office at £525 a month, and a private office costs £725 a month.
This looks pricy compared with WeWork’s rivals, but being a member provides access to a 50,000-strong worldwide “community”. The power of this network is key to the growth of the business. And it is interesting to see the line-up of multinationals taking space for reasons of flexibility, cost efficiency and, no doubt, image.
So how are Regus and the traditional serviced office providers responding? For just £49 a month, you can become a member with access to all 3,000 Regus offices worldwide, a unique offer for the global business traveller. Or for £471 a month, you can have unlimited access to a shared office such as 33 Cavendish Square, W1,or hire an office for four persons for £3,500 a month.
It is good to see Regus holding up against stiff competition – for a business wanting a more shared economy experience, Regus offers Spaces at Mappin House, W1, north of Oxford Street, an exciting open co-worker environment. You can become a member of Spaces for £345 a month and have access to a growing number of international locations.
I also checked out the upper and value ends of the market. London Executive Offices has a sophisticated offer in central London. You can have a shared office in the heart of Mayfair, W1, from £1,100 a month or a private desk from £2,000 a month. And, responding to demand for more mobile working, London Executive Offices provides access to seven lounges across central London for £400 a month. Check out 33 St James’s Square, SW1, for a very elegant offer.
At the value end, Workspace is responding with space such as Quality Court off Chancery Lane, WC2. For £275 a month you can have membership to all its 16 clubs across London. Or £325 a month will get you a dedicated desk at one of the clubs.
Serviced offices’ fortunes can be very cyclical but the trend towards a more open and shared economy has only just started. For many businesses, serviced offices can represent flexibility and value for money. But a freehold, or part freehold, and a more lowly geared business model will be more resilient than a leasehold serviced office model, no matter how cool the design.
