1. Serviced offices Private offices leased on flexible terms, fully fitted-out spaces inclusive of service charge and rates, usually with reception services. These spaces were among the original alternatives to leasing but have since been overtaken by the dynamic and creative interiors of the new flexible operator (and product). 2. Private Flexible offices Can be categorised under two sub- types, (a) Standard and (b) Hybrid. These spaces usually account for around 80% or more of the flexible operators’ curated space in a building. These buildings offer dynamic shared spaces which are a far cry from the sterile and utilitarian office interiors that are often typical of many buildings with leased premises. Typically taken on a term of 9 months up to 3 years. a. Standard A private office licence and fitted-out by an operator ready for the occupier who then pays a monthly licence fee. Sometimes fitted to the occupier’s criteria and specification. The arrangement is often by fixed price per/ desk office for an ‘all inclusive’ offer. Includes a fairly comprehensive range of services including, reception services, internet access, refreshments, meeting rooms (sometimes chargeable). Other ‘bolt-on’ services might be provided for an additional charge. b. Hybrid A managed private office for customers who want their own space but don’t want the commitment associated with managing it. Sometimes with independent access, these might be described as premium spaces for HQ or larger businesses and institutions. Savings can be achieved through efficient layout and design. These are often fitted-out by the operator or service provider. These spaces might be of particular benefit to those organisations looking to manage their lease assets in accordance with International Financial Reporting Standards; (IFRS 16 - typically short term: 12 months or less). 3. Co-working spaces On a membership of per desk basis (fixed-desk or hot-desk arrangements). These usually account for 10-20% of the operator’s space. They provide a sociable working environment where users can network, collaborate and do business with each other. The fixed monthly fee includes unlimited access on a first come, first served basis (more limited on a pay-as-you-go arrangement). Includes internet access, refreshments, meeting rooms (sometimes chargeable) and a curated calendar of events. Co-working communities include freelancers, start-ups and small businesses operating in open environments. They network, collaborate in shared spaces. There environments are fully serviced which are equipped with resources and facilities that would be found in an office environment. These co- working environments remove barriers to entry and provide flexibility and scaling for rapid growth and development. Other Co-working environments: a. Accelerators These spaces hold accelerator programs in which start-ups spend time working with a group of mentors over a set time-frame, often with the opportunity for seed funding at the end of the program. Space is typically open-plan with plenty of collaboration space. These are usually within fixed-desk environments. b. Incubators Similar to accelerators, incubator spaces accommodate start-ups, but are focused on a specific sector with sponsorship from larger firms and public institutions. While the space types are similar the underlying tenant is typically different. These are usually within fixed-desk environments.

MYTH BUSTING - FLEXIBLE

SPACES

Whilst the term ‘co-working’ might generate the most headlines, there is considerably more depth to the flexible workspace market. Below we have set out the basic characteristics of the three types of flexible workspace currently on the market.

Flexible Spaces - Debunking the Myth