1. Co-working and the tech industry – Where next ?
Juliette Morgan
Cushman & Wakefield
Global Tech Team Lead - London

2. Outline Co-working in London Definitions in a blurry world
The needs of tech companies/What co-working provides
Trends – Second Home + We Work
Developers use of co-working/OaaS
Emergent and international comparisons
Future prospects for co-working

3. Co-working London
This is a website called GoCoWo which has an interractive map of coworking spaces in London – they believe there are more than 100, but London and Partners have a figure closer to 220. Either which way it accounts for 3% of floor space in London and is the fastest growing sector in leasing transactions in London

4. By the numbers – the drivers
4.6m in UK are self employed – higher than records began
In London 740k self employed – or 1 in 8
+28% - Microbusinesses 73k-94k
Gen Y demanding flexibility in location, culture and collaboration
Corporates chasing innovation – internally and externally – accelerators, embedded teams, sponsorship, venturing
£’s per desk, not £’s per sq. ft.
Low/no commitment

5. OaaS - definition
Co-working – open plan, shared space, usually ‘roaming members’ who pay for access to a desk but not dedicated – av. price £350
Serviced offices – managed serviced space, hospitality driven, rate per month for personal space. – Av. Price £550
Accelerators – programs to develop corporate growth, usually with applications and time limited. Often embedded in Serviced Space. - equity for £’s

6. Where are the techs? - London

7. Where tech firms are looking – Hubble

8. Co-working competition - Transparency

9. Why co-working matters to tech

10. Yeah, but can they pay the rent?
Yup because they are! They have money, but don’t want to commit long term and absorb money on fit out and lease deposits.

11. What do they need from offices?
Flexible lease length
Low/no deposit
Ability to expand/contract
Plug and work
Connectedness
Attract talent
Credibility
‘acceleration’- a network that speeds up the business
Culture

12. What do they get in co-working/OaaS?
Networking
Furnishing/fit out
Smooth predictable cost
Cost and flexibility - bundled
Expand and contract
Co-operation
Events
Community
No commitment
Design quality
Brand expression
Talent attraction

13. The role of accelerators in co-working
Provide pipeline of new companies
Animate the space
Attract angels, venture capitalists and the right community
A differentiator – e.g. industry specialism
Underwrite finances e.g. Corporates paying for space (Barclays/Techstars/Central Working

14. Second Home – A New Trend
Priveleged to work in second home, infact this is my office, run an accelerator in OaaS

15. Work + Life
“offices need to be places where you can relax as well as work, because you’ll probably be spending more time in there than your parents did”
Second Home

16. Curation Community Wellness Brand Vibe Informality Credibility
Support services
Diversity

17. Wellness

18. Nourishment Great onsite food – breakfast to bar, £5 lunch
A program of speakers to inspire – Branson, McCartney, Lord Rees, Osbourne, Rogers, Morazov
Meditation, yoga, pilates, running
Personal controllable environment; lighting, temperature, choose a chair
Hospitality vs. Security/hosting
Volume, light, environment, nature (gets hot and cold)
Raw, authentic, not over designed
Plants/biophilia

19. The Economics
Revenue from F&B sales – especially when animating a lobby (loss leader space)
Event revenue
Co-working revenue
Desk rent revenue
Sponsorships / brand agreements
Meeting space hire

20. The Services Reception Phone line Internet Furnishing Break out space
Meeting space
Printing
Curation

21. We Work – Amazing! £5bn global market cap! – Goldman & JP Morgan
March to IPO.....
6 sites in London, more in pipeline
4 years old!
‘members’ not ‘tenants’
Beer on tap, beautiful fit out, private offices
‘physical social network’ – the value is the members
Start ups, corporates, everyone in between – an ecosystem

22. How developers are using co-working....
Animate the scheme
Bring credibility
Attract large corporates to high growth start-ups
Manage it directly – e.g. Hello Work (Allied London)
Provide pipeline – e.g. Canary Wharf – changing tenant mix
Brand building
Swing space for occupiers e.g. Office Group at White Collar Factory

23. International Examples
Rocket space – San Francisco
Galvanize – San Fancisco, Boulder, Seattle
Chicago
The Porter - Sydney
Cambridge Innovation Centre - Boston
Neuehaus – New York + London
Soho Works – London, Istanbul, Los Angeles
Spaces -

24. Future of co-working Facial recognition tech
Occupeyes – real time occupancy
Data on social interraction (higher value seats in co-working?)
Floorplans with identity
Social occupancy impact
Real time occupancy cost – liquid space?
A tech bubble? Regus round II?
Priced into new locations

25. Conclusion Trend unlikely to go away – 10% of market?
OaaS is a critical piece in place making and attracting corporates – balance of new and old
OaaS are hoteliers of office space, and taking lease risk to break down real estate offers to growing companies in a way they can use
Covenant security questions
Watch the investment – tech bubble vs. freelance/company formation in a downturn
Corporates using access to co-working for innovation agenda

26. Thanks
@Juliettemorgan