the flexible workplace

The Flexible Workplace

An exploration into the value of co-working spaces as an accommodation strategy for corporations

Final Presentation 26th June 2020

Natalia Echeverri Agudelo

Real Estate ManagementFirst Mentor: Tuuli Jylhä

Second Mentor: Philip Koppels

Table of Contents

01 Introduction

02 Research

03 Methodology

04 Theoretical Framework

05 Empirical Research

06 Findings

07 Conclusions

WHY

WHAT

HOW

Introduction01

WHY

7I N T R O D U C T I O N

Technological, economical, social changes

Organizations

Co-working

FlexibilityFlexibility

SupportSu

ppor

t

Affect

Strategic resources

Human CapitalReal Estate

DemandDemand


Co-working is a type of multi-tenant office, with a high level of service, where a diverse group of individuals with more or less heterogeneous backgrounds share a ‘community work environment’ on the basis of a membership that grants access to multiple services and facilities

(Garrett, Spreitzer, & Bacevice, 2017; Sankari, 2019; Spinuzzi, 2012; Yu, Burke, & Raad, 2019).

1. Introduction


2XDoubled the stock of 2016

60% 56%2 ,000,000Co-working operators are planning to expand

Office occupiers planning to use co-working in the next 3 years

Members worldwide

23,000Co-working spaces around the world

(Deskmag, 2019)

Research02

WHAT

11R E S E A R C H

1. Problem Statement

Despite the rapid growth and increased popularity of co-working spaces, little research has been done concerning the value of this office model in corporate real estate.

12R E S E A R C H

2. Research Questions

“How can co-working as a real estate strategy contribute to the performance of a corporation while meeting the flexibility demands of the organization and the employees?”

13R E S E A R C H

Flexibility

Competitive Advantage

Adoption

Real Estate

Co-working

Organization

Knowledge Workers

D e m a n d S u p p l y

Phys

ical

Time

Func

tiona

l

Fina

ncia

lSp

ace

a.

c.1.

2.

d.

e.

b.

Q1: How does the co-working space concept meet the flexibility needs of corporations and users?

Q2: How can co-working be adopted by corporations to achieve competitive advantage?

a) What are the real estate flexibility demands of corporations?

b) What are the workplace flexibility demands of knowledge workers?

c) What are the attributes of co-working in relation to flexibility?

d) What are the potential contributions of real estate to competitive advantage?

e) Which challenges are associated with adopting co-working as an accommodation strategy?

Methodology03

HOW

15M E T H O D O L O G Y

JournalsBooksReports

Qa Qb Qc Qd

Literature Review

Case StudiesInterviews

Q1 Q2 Qe

Theoretical & Empirical Research

Main Question

Demand StudySupply StudyExpert Study

Synthesis & Interpretation

1. Theoretical 2. Empirical 3. Conclusions

Method

Data Source

ResearchQuestions

Methodology

Theoretical Framework

04

17T H E O R E T I C A L F R A M E W O R K

1. 2. 3. 4.Knowledge workers and flexibility in the workplace

Corporations and flexibility in the property portfolio

Co-working and flexibility

Corporate Real Estate and Competitive Advantage


Flexibility

1.


Knowledge Workers Corporate Real EstateChoice, autonomy and

work-life balanceEfficiency and

responsiveness to change

Flexibility


Knowledge WorkersChoice, autonomy and

work-life balance

Flexibility

Navigator

Gatherer

Connector

Anchor

–

+

Mo

bi

li

ty

(Greene and Myerson, 2011)


Corporate Real EstateEfficiency and

responsiveness to change

Flexibility

1st Periphery Portfolio

2nd Periphery Portfolio

Core2 13

(Gibson and Lizieri, 1999; Haynes and Nunnington, 2010)


F l e x i b i l i t y

Time Space

Functional

Location

Physical FinancialCorporate Real Estate

Knowledge Workers

Flexibility Integrative Approach


Co-working

3.


Workplace is an ecosystem comprised of people, process and place that aims at supporting individuals and the nature of their work

(Mitchell-Ketzes, 2003)


Network of physical, virtual and social aspects extremely important to support knowledge sharing and interaction


3. Co-working

Co-workingSpacesAttributes

1. Community

2. Space-as-a-service

3. Multipurpose Office

4. High Accessibility

5. Attractive Workplace


Corporate Real Estate and


4.


(Gibler & Lindholm, 2012)

Corporations are increasingly focusing on aligning their resources to efficiently support the overall business competitive strategy

4. Competitive Advantage


Workplace



Real Estate

Human CapitalWorkplace



Tangible IntangibleWorkplace


Physical Space

Knowledge Creation


Flexibility


Adoption

Real Estate

Co-working

Organization

Knowledge Workers

D e m a n d S u p p l y

Phys

ical

Time

Func

tiona

l

Fina

ncia

lSp

ace


Time

Location

Space

Adoption

Core Property

Space Configuration

Type of Activities

Lease Length

Community1st Periphery

Location

Intensity of Use

Options

Connector

Anchor

Space-as-a-service2nd Periphery

Gatherer

Navigator

Multipurpose Office

High Accessibility

Attractive Workplace

S u p p l yD e m a n d

Flexibility

Co-working

Corporate Real Estate

Knowledge Workers


Physical

Functional

Financial

Organization

EnableFlexibility

EnhanceEmployee Satisfaction

Reduce occupation costs

IncreaseEmployee productivity

EncourageEmployee Innovation

SupportEnvironmentalSustainability

Empirical Research

05

38E M P I R I C A L R E S E A R C H

Components

1. 2. 3.Demand StudyCase Studies

Supply StudyInterviews

Expert StudyInterviews

Knowledge intensive corporations using co-working

Co-working providers of varied scales

Co-working and workplace experts


Case A

TransportationCompany

Start Operation

Company Expansion

Relocation The Cloud

Company Expansion

Relocation Tripolis Park

Testing Market Expansion SpaceSupport Headcount Overflow

Expansion SpaceSupport Headcount Overflow

Swing Space

2012 2014 2017 2020 202250

400

1,500

3,000

*Temporary Projects / Staff

Headcount

Business

Co-workingStrategy


Start Operation

Company Expansion

Company Expansion

Re-brandComprany

AMS Zuid

Testing Market Expansion SpaceSupport Headcount Overflow

2009 2012 2017 2019 2020

5

15

1

20

Case B

Communications Agency

Headcount

Business

Co-workingStrategy


New Office Location

Company Restructuring

CompanyRelocation

Core & Flex Complementary Space

2009 2019 2020

1,150

700 700

Case C

FMCG Company

Headcount

Business

Co-workingStrategy


Relocation Co-working

2009 2015 2019 2020

101,000

79,000

94,000

85,000

Core & Flex Complementary Space

*Temporary Projects / Staff

Case D

Energy Company

GlobalHeadcount

Business

Co-workingStrategy


Case E

Entertainment Company

Start OperationAmsterdam

EMEA HQAmsterdam

Berlin Madrid Brussels

RomeParis

Testing Market

2009 2012 2015 2018 2019 2020

1,900

3,700

2,400

5,500

7,300

8,600

GlobalHeadcount

Business

Co-workingStrategy


Supply Study

Y

International Provider+350 Locations

ZW

Local Provider1 Location

International Provider7 Locations

X

Local Provider 5 Locations


Expert Study

Jordy Kleemans

Head of ResearchSavills—NL

Wim Pullen

DirectorCfPB—NL

Kay Sargent

Director WorkplaceHOK—US

Findings06

Co-working Approach

48F I N D I N G S

2.Expansion Space

1.Swing Space

5.Testing Market

3.Core & Flex

6.Temporary Projects /Staff

4.Touchdown Space

1. Co-working Approach

49F I N D I N G S

Renewal / Decline

MaturityGrowthStartup

Perf

orm

ance

Stage

Strategy

Cases

Testing Market

Swing Space / Touchdown Space / Temporary Project

Expansion Space Core & Flex

A B E

A B

C DC


50F I N D I N G S

A B A C D A C D E

1st Periphery 2nd PeripheryCore1

Main Location(Lease >1-5 years)

Complementary Space(Lease >1-5 years)

Temporary Space(Lease <1 year)

2 3

Testing Market

Swing Space

Touchdown Space

Temporary Projects / Staff

Core & Flex

Expansion Space

Cases

Strategy

Portfolio


51F I N D I N G S

“We say for corporations for satellite work, for emergency preparedness, for high risk areas, and for back of the house temporary solutions, those are really kind of the primary reasons why you would want co-working to be part of your portfolio.”

Expert 2 Kay Sargent

Sources of Flexibility

53F I N D I N G S

Physical Functional Financial

Flexibility in Co-working

54F I N D I N G S

Physical Functional Financial

Flexibility in Co-working

Space ConfigurationBuilding Location

Type of ActivitiesIntensity of Use

Lease LengthDiversification

55F I N D I N G S

“Flexibility is very important, the organization is in a constant state of transformation and the business find it very hard to project beyond just the next three years, what the headcount will look like, or what the needs of the organization and employees will be. The nice thing is that co-working gives us this flexibility in the future.”

Interviewee C

Co-working and Performance

57F I N D I N G S


Enable Networking

EnablePortfolioFlexibility



Tangible Intangible

High SustainabilityLow Sustainability Moderate

Opportunities


Challenges

59F I N D I N G S

3. Challenges

Technical ManagementProviders—Supply Organizations—Demand

60F I N D I N G S

3. Challenges

TechnicalProviders—Supply

High Occupation Costs

Quality of Space

Limited Supply Capacity

Security & Privacy

1.

2.

4.

3.

61F I N D I N G S

3. Challenges

ManagementOrganizations—Demand

Company Culture & Image

Mismatch Employee Profile

Management Style

Employee Mindset

1.

2.

4.

3.

Strategies in Relation to Main Concepts

63F I N D I N G S

2.Expansion Space

1.Swing Space

5.Testing Market

3.Core & Flex

6.Temporary Projects /Staff

4.Touchdown Space

64F I N D I N G S

Time

Location

Space

Challenges

Core Property

Space Configuration

Type of Activities

Lease Length


Location

Intensity of Use

Options

Connector

Anchor


Gatherer

Navigator

Multipurpose Office

High Accessibility



Flexibility

Co-working


Knowledge Workers






EnableNetworkingOpportunities

Cost

of S

pace

Hig

h O

ccup

ancy

Secu

rity

& P

rivac

y

Lim

ited

Capa

city

Qua

lity

of S

pace

Empl

oyee

Min

dset

Qua

lity

of In

tern

et

Com

pany

Cul

ture

Cust

omiz

atio

n

Empl

oyee

Mis

mat

ch

Man

agem

ent S

tyle

Man

agem

ent

Tech

nica

l

Physical

Functional

Financial

Organization

Swing Space

65F I N D I N G S

Testing Market

Time

Location

Space

Challenges

Core Property

Space Configuration

Type of Activities

Lease Length


Location

Intensity of Use

Options

Connector

Anchor


Gatherer

Navigator

Multipurpose Office

High Accessibility



Flexibility

Co-working


Knowledge Workers







Cost

of S

pace

Hig

h O

ccup

ancy

Secu

rity

& P

rivac

y

Lim

ited

Capa

city

Qua

lity

of S

pace

Empl

oyee

Min

dset

Qua

lity

of In

tern

et

Com

pany

Cul

ture

Cust

omiz

atio

n

Empl

oyee

Mis

mat

ch

Man

agem

ent S

tyle

Man

agem

ent

Tech

nica

l

Physical

Functional

Financial

Organization

66F I N D I N G S

Touchdown Space

Time

Location

Space

Challenges

Core Property

Space Configuration

Type of Activities

Lease Length


Location

Intensity of Use

Options

Connector

Anchor


Gatherer

Navigator

Multipurpose Office

High Accessibility



Flexibility

Co-working


Knowledge Workers







Cost

of S

pace

Hig

h O

ccup

ancy

Secu

rity

& P

rivac

y

Lim

ited

Capa

city

Qua

lity

of S

pace

Empl

oyee

Min

dset

Qua

lity

of In

tern

et

Com

pany

Cul

ture

Cust

omiz

atio

n

Empl

oyee

Mis

mat

ch

Man

agem

ent S

tyle

Man

agem

ent

Tech

nica

l

Physical

Functional

Financial

Organization

67C O N C L U S I O N

Conclusion07


In the highly uncertain conditions of today, organizations must become fluid and dynamic entities to evolve and respond to the dynamic environment


“How can co-working as a real estate strategy contribute to the performance of a corporation while meeting the flexibility demands of the organization and the employees?”

MQ.


Six different alternatives to implement co-working as an accommodation strategy across the property portfolio, in relation to the requirements of the organization

the flexible workplace

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