businessinfomag.uk
magazine
22
CO-WORKING
Business Info (BI):
Why is Teddy Sagi
investing in co-working spaces rather
than a conventional commercial
office block?
Bianca Bass (BB):
Because co-working is
the really exciting new way of working.
There are big players in the sector, like
WeWork for example, but if you look at
the market share of the industry as a
whole and compare it with how much
it's growing, it's very early days – so
there’s still a massive opportunity to
make a mark in the industry and this
movement. Secondly, Teddy’s identified
a gap in the market for a co-working
space that isn't as informal as WeWork.
Historically, co-working has offered a
choice between informal spaces for
freelancers and more creative types
and very traditional Regus-type places.
LABS is the middle ground, a really great
balance between the two.
BI
:
Does the co-working model earn
more?
BB:
Yes it does, because a lot of the
monetisation around co-working comes
from additional services. Rather than
Grown up co-working
just letting out a single floor to one
company, you can monetise it through
the technology you provide, through
events, through café sales. It’s a much
wider model.
BI
:
Does this make it an expensive
choice for your tenants?
BB:
No, it actually works out better for
them. One of the interesting things
we’re seeing, particularly in the wake
of Brexit and some uncertainty around
London, is that traditional tenants
are coming across to this co-working
model because it gives them flexibility.
Rather than being tied in to a year-long
contract, you have the option to go for
a shorter term, say three months. This
gives a business, particularly a growing
business, the flexibility to expand or get
smaller. It gives you more options than
a traditional lease.
BI
:
Is co-working a long-term, growing
trend or just a fad?
BB:
It’s definitely a growth area. One
of the exciting things we’re doing is
making co-working more professional
and more attractive to a wider audience.
Traditionally, co-working has been
hipster, young, entrepreneur, East London,
Brooklyn. Now, we’re seeing lawyers,
teachers, research arms of universities,
lots of super-traditional professional
businesses coming to places like LABS,
because they like the space, but also
because they like the cultural offering.
When you come to co-working, you’re
not just getting a space; you’re getting a
whole cultural offering as well.We’re at
the very beginning of the industry and
I’m really intrigued to see how it pans out
over the next five to ten years.
BI
:
Do you think it’s a generation
thing? Is it mainly younger people
who are interested in co-working?
BB:
At LABS, the average person is
probably in their 30s, so slightly older
millennials. But I think over time we will
see that shift. Millennials are looking for
more purpose from their careers and
more flexibility. The 9-5 model will be
dead in 10 years and because of that
I’d say yes, it probably is a generational
thing. But we are also seeing older
people who recognise that to attract
talent they do need to offer flexibility.
That’s what co-working allows.
LABS is a new co-working company set up by Israeli
businessman and owner of Camden Market, Teddy Sagi. It
already has sites in Camden and Holborn and plans further
openings in London, Tel Aviv and Bucharest.
Business Info
spoke
to head of marketing Bianca Bass about changing work patterns
and what co-working has to offer traditional businesses.
Atrium, Camden Town
Hogarth, High Holborn
Bianca Bass
