Photo by Frame Harirak on Unsplash
Space As A Service must get real
To date the SPaaS package has been a cake baked from potentially very generic ingredients: contractual flexibility, ‘your business could look like an advertising agency’ environments, networking events and lashings of artisanal coffee / free beer. Suddenly this does not look like it is enough, particularly for the SME community.
The worry is that, unless the business value is demonstrable, companies will see Space as a Liability, with the consequence being a heightened price war. CRE companies must therefore provide compelling answers to the question of why go back to any office, ever again? Creative and flexible work environments are vital but have become table stakes.
There is therefore an opportunity / obligation for workplace providers to become more proactive in supporting their customer base. For example, rather than merely providing passive and invisible facilities management services, they could co-ordinate the delivery of business advice that makes a difference to customers. This might cover access to finance, export advice, productivity programmes and mental, social, and physical wellbeing best practice. Another strand could be the delivery of ancillary ‘back office’ overhead functions like payroll, accounting, tax planning and preparation, recruitment. Some, particularly given the impending IR35 regulations, may even consider offering co-employment or ‘professional employer organisation’ services.
The key point is the more customers thrive, the better their ability to service license fees. The more that a workspace provider can demonstrate they are a partner, the less they look like a rentier.
