WeWork, a prominent figure in the flexible workspaces sector, has encountered significant difficulties recently, drawing the attention of property owners and other workspace providers.
The company’s financial struggles have been widely discussed in the media, and it has made headlines by rapidly closing down locations, such as its Blackfriars office in London, where clients were only given a 30-day notice – a move that highlights the instability these closures cause.
Landlords are now tasked with quickly finding new flexible space providers to fill the vacancies left by WeWork in order to sustain their income.
New operators taking over WeWork’s spaces need to transition the premises swiftly, either accommodating existing WeWork members or attracting new ones.
It’s crucial to recognize that WeWork’s mishaps should not detract from the overall value of the flexible workspace concept.
WeWork has dealt with various complex issues that do not necessarily reflect the state of the industry as a whole. The company’s rapid expansion led to expensive lease commitments. Additionally, its IPO challenges and client losses due to an increase in remote work during the pandemic have contributed to its unique predicament.
Nevertheless, there are plenty of eager operators ready to step in and businesses looking for flexible workspaces, so the focus should be on aiding landlords and operators with the transition process after WeWork’s departure.
Having overseen this process many times, NCG offers some key advice.
Focus on Technology
The backbone of any effective flexible workspace is its digital setup. To ensure a space welcomes members smoothly, several critical factors need to be considered:
- Security and access management
- Reliable Wi-Fi
- Environmental controls for temperature and lighting
- Reservation systems for common areas and visitor registration
- Digital platforms for members
NCG specializes in digital infrastructure and has led many WeWork transition projects. The company stresses three essential principles: fast execution, inventiveness, and maintaining high standards.
Reduce Inactivity
Minimizing the time a space remains unused is crucial to avoid loss of income. A well-planned strategy is vital to reopen the space promptly.
Challenges may arise during this process, but as WeWork has vacated numerous locations worldwide, there is now a greater understanding and more support available to manage these transitions.
Reuse Existing Systems
It’s cost-effective to use the digital infrastructure that’s already in place, which is often left behind by previous operators and can be reconfigured or updated as needed.
Before investing in new technology, new operators should evaluate what’s already available, potentially saving time and funds.
Ensure Top Quality
Even though promptness and ingenuity are important, it’s crucial not to compromise on quality, as a poor user experience can affect client satisfaction and retention.
In the wake of WeWork’s exit, the transition of workspaces to new operators remains a pressing issue. But with experienced service providers like NCG, landlords and operators have the resources to manage these changes efficiently. By prioritizing top-notch workspaces, the flexible workspace sector continues to progress.
Tom Proctor is the CEO and founder of NCG, a company specializing in digital infrastructure for the property industry, serving clients throughout the UK and Europe. Proctor has a background in real estate with major companies and aims to revolutionize property technology infrastructure creation, implementation, and management.
