Managed Space: insights from more leading players
g8 founder Douglas Green talks to Steven Mew and Joseph Mishon about Managed Space - and why it benefits building owners
The Managed Space sector sits between flexible workspace and the traditional lease, and targets businesses that want the convenience of great Flex and the option of having their own personal space in an unbranded building. Managed space will typically offer:
Workspace anywhere between 5,000 sq. ft. – 25,000 sq. ft.
Services, including IT, cleaning and security
Fully fitted, work-ready space
The option to bespoke your space (this varies by provider)
For the second post of my series about this exciting and fast-growing sector, I spoke to two of the leading providers, GPE and Kitt, to understand their business models and how they stand out from their competitors.
GPE
GPE has started a £1.1 billion development programme and is targeting to organically grow its Flex offering to more than 600,000 sq ft.
GPE’s focus was also recently presented to key stakeholders of the business at their recent Capital Markets event, where the team shared their focus on the three rebranded products, each tailored to match what the customer wants:
1. A ‘Ready-to-Fit’ option, appropriate for those businesses who typically are taking larger spaces on longer leases and want to fit out the space themselves.
2. For customers wanting more, GPE provides ‘Fitted’ spaces, where businesses can move into fully furnished, well designed workspaces. This includes their own front door, furniture, meeting rooms, kitchen, and their own branding.
3. Finally, GPE’s ‘Fully Managed’ offer, where GPE handles all day-to-day running of the workplace in one monthly bill, meaning firms can focus on their own work, hassle-free.
Steven Mew, Customer Experience & Flex Director of GPE, said: “Our goal is to provide greater choice for our many customers’ and meet the increasing demand for flexible workspaces within our portfolio that’s already packed with opportunity. As the world continues to return to offices after the pandemic businesses are looking to achieve a greater degree of agility, a larger number of employees want hybrid working, and technology is playing its part as we steer away from the old ways of working towards smarter and sustainable workplaces. And it’s not just about SMEs, larger corporates are increasingly utilising Flex space as part of their real estate strategies.
“We have been delivering flex space since 2018 and the existing portfolio is well suited, with the service already available in over 11 London locations, covering some 250,000 sq ft. Our ambitions more than double our existing flex footprint, with the opportunity to grow further by buying buildings. We’re off to a great start having recently acquired 7/15 Gresse Street, in the heart of Fitzrovia, for our Fully Managed offer to meet the deep customer demand and deliver a market leading service and amenity provision in a well-designed, tech enabled and sustainable space.”
All workspace options are further enhanced with the advanced functionality of sesameTM, GPE’s award-winning smart workplace app, which provides features such as an online concierge service, contactless access control, environmental controls and much more.
Kitt
Kitt is one of London's leading Managed Space operators, currently managing over 50 units across nearly 150,000 sq. ft. The product turns small floors (1-10k sq. ft.) into bespoke turnkey spaces for tenants complete with full office management and a range of 100+ on-demand services.
Kitt’s business model sees tenants contracting directly with landlords, with Kitt providing all services & management around that lease for a single monthly cost.
Joseph Mishon, Head of Expansion and Marketing at Kitt, commented: “We can activate and service a single small floor in a single building through our in-house proprietary management & hospitality platform. We work with both Landlords to help fill their vacant space with this new offering, as well as tenants to create a Managed Solution in any space they are already in or looking at in the future.
“We will be launching the product internationally later this year - and have tenant customers ranging from start-ups to FTSE250s who all desired a hassle-free, design and hospitality led office experience for the next 1-5 years. It's become clear that the office needs to be worth leaving home for, and we are laser focused on providing a truly end-to-end experience built around the customer”
Clearly, this sub-sector is set to thrive, and its growth is further evidence – if any were needed – of the increasing popularity and sophistication of the wider Flex market.
