27 June 2024
What is Hot Desking?
In commercial real estate, hotdesking has emerged as a transformative trend, reshaping how office spaces are utilised and managed. For property managers and commercial office owners, adopting hotdesking not only aligns with modern work practices but also offers a plethora of benefits that enhance operational efficiency, tenant satisfaction, and financial performance. This has led to a trend of refurbishing office spaces to accommodate hot desk tennants.
This article will breakdown what hot desking is, the benefits of hot desking, and what to consider when converting your commercial space to a hot desk space.
What is Hot Desking?
Hot desking refers to a flexible office arrangement where employees do not have assigned desks.
Instead, they choose from available workspaces on a first-come, first-served basis. This dynamic approach supports the increasingly mobile and remote workforce, fostering a more collaborative and adaptable work environment.
This also can apply to a communal office space that allows individuals to hire and use on an adhoc basis.
What are the benefits of Hot Desking?
Hot desking refers to a flexible office arrangement where employees do not have assigned desks.
Instead, they choose from available workspaces on a first-come, first-served basis. This dynamic approach supports the increasingly mobile and remote workforce, fostering a more collaborative and adaptable work environment.
This also can apply to a communal office space that allows individuals to hire and use on an adhoc basis.
What are the benefits of Hot Desking?
Maximising your Property
Hot Desking enables property managers to maximise the use of available office space. Traditional office setups often have dedicated desks that can remain unoccupied for significant portions of the day due to meetings, remote work, or travel. Hot Desking ensures that every square foot is used efficiently, reducing wasted space and increasing the potential rental yield per unit area.
Cost Savings
Hot Desking can lead to substantial cost savings for both property managers and tenants.
For tenants, the reduced need for fixed desks translates to lower expenses related to office furniture, maintenance, and utilities. Property managers, in turn, benefit from a more attractive leasing proposition that can draw in cost-conscious businesses.
Moreover, the reduced demand for large office spaces allows property managers to diversify their tenant mix, potentially including smaller businesses or startups that might not have been able to afford traditional office setups. This diversification can enhance the stability and profitability of a commercial property portfolio.
Improved Tenant Satisfaction and Retention
Tenant retention is crucial for maintaining a stable income. A property that adapts to the evolving needs of its occupants will naturally foster long-term relationships, ensuring consistent revenue.
Hot desking can significantly enhance the tenant experience. Modern employees value flexibility and the ability to choose their work environment. By offering hot desking, property managers can cater to these preferences, leading to higher tenant satisfaction. Satisfied tenants are more likely to renew their leases, reducing turnover rates and the associated costs of finding new tenants.
Adaptability to Changing Market Conditions
Hot Desking provides a level of adaptability that can help property managers navigate these changes. For instance, during economic downturns, companies may downsize and require less office space. Hot Desking allows property managers to reconfigure spaces quickly and efficiently, accommodating new tenants without major renovations.
That said, during periods of growth, the flexible nature of hot desking can support the rapid expansion of existing tenants or the onboarding of new ones. This adaptability ensures that properties remain attractive and functional regardless of market conditions.
What to Consider Before Switching to a Hot Desking Model?
Refurbishing properties to accommodate hot desking tenants can be a lucrative opportunity. However, it requires careful planning and execution to ensure the space meets the needs of modern tenants while maximising the property’s value.
Here are essential factors that commercial landlords should consider before undertaking such refurbishments.
Market Demand and Tenant Needs
Understanding the market demand and the specific needs of potential tenants is the first step. Conducting market research can help landlords gauge the interest in hot desking solutions within their area.
Additionally, engaging with current and prospective tenants to understand their preferences and requirements can provide valuable insights. This ensures that the refurbishment aligns with market expectations and tenant needs.
It is also important to consult with your existing tenants. By getting their feedback on the project and how it may affect their workspaces can help ensure they’re happy during the refurbishment and remain with you.
Space and Planning
Hot desking requires a thoughtful approach to space planning. Unlike traditional offices, hot desking spaces should accommodate a dynamic work environment.
Key considerations include:
- Optimised Layout: Design an open-plan layout that maximises the use of available space while ensuring comfort and accessibility. Include a mix of workstations, collaborative areas, private meeting rooms, and quiet zones.
- Flexibility: Ensure that the design allows for easy reconfiguration to accommodate changing tenant needs. Modular furniture and movable partitions can enhance flexibility.
- Density: Determine the appropriate desk-to-employee ratio to avoid overcrowding and ensure a productive environment.
- Listed Properties: If your property is listed, you will need to take additional precautions and adapt your plans to remain compliant. Learn how we completed EPIC UK LTD’s refurbishment of their premises.
Financial Considerations
Refurbishing a property for hot desking can be a significant investment. Naturally, this means there needs to be careful consideration and clear cost management over the project. Otherwise you risk going over budget. Here are things to consider before beginning a hot desking refurbishment.
- Budgeting: Develop a detailed budget that includes all refurbishment costs, potential technology upgrades, and ongoing maintenance expenses. Factor in potential downtime during the refurbishment process.
- Funding: Explore funding options, such as loans or grants, to support the refurbishment project. While the application process can be challenging, securing this support could help offset the cost for the refurbishment.
- Flexible Leasing Pricing: Hot Desking tenants often prefer flexible lease terms. Offering short-term leases, coworking memberships, or pay-per-use options can attract a wider range of tenants. That said,
Refurbishing a commercial office for hotdesking tenants presents an exciting opportunity for landlords to attract a diverse range of tenants and maximise the use of their space. As the demand for flexible workspaces continues to grow, a well-executed hotdesking refurbishment can position a property as a premier destination for modern businesses.