In Simon Morris’ opinion, property investors might want to take note of the results of a new survey which showed that UK small businesses want flexible, “co-working” office space.
Property investment is the same as any other industry. There’s one measure that investors must take to earn a significant profit. They must anticipate and cater to the needs of their target consumer. This is why commercial property investors should follow small business property trends.
Statistics from the Federation of Small Business (FSB) indicate that as of the start of 2014, there were 5.2 million small businesses in the UK. Furthermore the FSB data shows that small firms account for 99.3% of companies in the UK. Therefore, if commercial property investors cater their investment decisions to the small firms market, they could draw impressive return ratios.
Desired office space
New research from Quality Solicitors has shown what small to medium sized enterprises (SMEs) want from their office space. According to Work Place Insight, 71% of the 250 SME decision makers polled predicted that they’ll need to secure co-working office space in the short or medium term. 42% said that it’s “more important” to have a flexible and adaptable work space.
Meanwhile, 18% argued that it’s important to secure a work space where their business can interact with, and collaborate with, other firms in their premises. 39% of SMEs are currently looking at work space that presents networking opportunities. What was interesting was that 54% of SMEs admitted they want flexible, short term lets and 53% would demand a “break clause” so they could leave if the space is no longer practical for their business.
Michael Sandys, commercial property conveyancing expert at Quality Solicitors, commented on the results of the research. Sandys said: “It’s clear from this research that the traditional, one size-fits-all approach to commercial property conveyancing is no longer valid.
“SMEs now want a different kind of workspace, which offers flexible space and networking opportunities to boost efficiencies and maximise the space. They don’t want to be tied down, so we’re seeing more and more businesses demanding shorter, less restrictive leases to give them the freedom to move around if they need to.”
What SMEs want
This survey makes it clear that UK SMEs want flexible co-working office space. This will allow them to engage with other business, and use their expertise to think up new ways to drive profit. Investors may be able to reap significant returns if they look into investing in flexible, co-working office space.