Occupier-Edge_Ed5_A4 - AR

OPPORTUNITIES

Why doesn’t “meanwhile use” work for all occupiers? As ever, there are various hurdles when disruptive ideas come to the forefront. One of the first issues to overcome is the legal framework surrounding meanwhile uses. Often, the real challenge is a change of mind- set. With disruption comes resistance; the real estate industry being a strong culprit of this. In an industry which constantly analyses risk and reward, how can you promote a new concept with many unknowns and potential risks:

Risk reduction • For fast-growing companies, real estate can’t keep up

with their growth, offering their ‘swing space’ as a meanwhile use until they require the space, providing an interim income stream • For occupiers of meanwhile uses, both in terms of cost and commitment

DISRUPTION

Culture A dynamic flexible

Opportunity of failure To experiment with new businesses and ideas with lower commitment, cost and risk

space defined by the people

> > Cost exceeds value derived

who occupy the space, fostering a sense of place and distinctiveness

> > Disgruntled landlords or nearby tenants

> > Wasted time and resources

> > Increased reinstatement exposure

> > Increased insurance premiums

Collaboration Occupiers of meanwhile uses taking advantage of the sharing economy

> > Damage to PR and brand

> > Success is very location/building specific

Affordable workspace Opportunity for occupiers to operate in markets previously inaccessible to them

Despite the risks, the success stories speak for themselves – with great risk, comes great reward.

Brand building/corporate social responsibility Reflection of company culture

• For head-tenant who subleases to a meanwhile use • Meanwhile use occupiers

Peerspace, America An online marketplace connecting professionals and businesses to short- term space easily. They offer underutilised spaces for photo shoots, offsite meetings, product launches, and charity events in locations such as San Francisco, San Jose, Los Angeles, New York, Seattle, Austin, Chicago, and more.

Employment Employee attraction and retention of top talent – Generation Z who see work as an experience, and desire a unique and flexible working culture

Financial • Improved brand and CSR, indirectly improves profits • Cost savings for head tenants • Opportunity for occupiers to monetise excess ‘swing space’ • Affordability – reduced workplace costs, grants • Tapping into night time economy – maximising capitalisation of space

• Meanwhile uses may not begin as a financially beneficial option, but they often end up evolving into successful businesses

36 The Occupier Edge