The Emergence of Space as a Service Business
The shift to hybrid work and the general movement away from 1:1 seating and working in the office 5 days a week has resulted in organizations opting for less space. Buildings in prime locations, close to public transportation, with quick access to great amenities, and services are still holding a healthy tenant base. Buildings that have less of these immediate services are looking to up their game and are considering innovative solutions to get back great tenants.
Space-as-a-Service businesses provide flexible work environments that are leased on an as needed basis. The concept was normalized by companies like WeWork, Regus, and SPACES who focused on flexible, vibrant, and youthful coworking spaces. The concept has since matured, and more Space-as-a-Service businesses are emerging, looking to offer a wider variety of coworking experiences. They carefully review local business needs, customers and location.
Future of Space-as-a-Service
SGH worked with ModSpace Atlantic, to convert 3 existing vacant spaces they owned, into a fully flexible workplace that offers premium features, services, IT and security. Their goal was to create an “elevated, contemporary and light-filled” space that caters to evolving workplace needs and provides a truly inviting workplace experience. Space as a Service does two great things; provide desirable, alternative solutions for people and organizations who do not want to take on the risk of long-term leases and they are revitalizing existing spaces, that were otherwise sitting empty, which helps to keep buildings and neighbourhoods vital places.
An increasing division between good and not great real estate is increasing, as Class A buildings, in prime locations continue to keep tenants but with Class B and C buildings starting to empty out impacting both property value and neighbourhood vibrancy. Space as a Service provides an ideal workspace with attractive services, comfort, and functionality in alternative locations where this likely does not exist, meeting a new demand.