Need Office Space talks to Gareth Evans, Managing Director of Bizspace

November 19th, 2009 | by Amy Edwards

Need Office Space have another exclusive interview, this time with Gareth Evans, Managing Director of Bizspace.

What is the concept behind Bizspace?

Our aim is to be recognised as the best provider of flexible workspace nationally by offering value for money office & industrial space on flexible terms. We strive to provide businesses with tailored solutions to their workspace needs, without the inflexibility of traditional property leases. In effect, we allow businesses the freedom to grow and prosper along with their space rather than be constrained by it.

What makes Bizspace different from competitors?

We are one of the very few business centre operators that provide true flexibility and this extends from the occupancy terms themselves through to adapting and personalising the workspace. We operate on a truly national basis, with 110 locations across England and Scotland, and with almost 6,000 spaces in office, studio, workshop, light industrial units and even storage facilities we can cater for almost any type of business requirement.

Why would a small business setting up for the first time choose Bizspace?

We guarantee they will be getting the best value for money workspace on truly flexible and transparent terms. We have a simple, practical approach which means that our customers can “move in today” facilitated by an easy one-page licence agreement. This means they can get on with their business without worrying about complicated and drawn out leases and property transactions. Businesses also need only take the space they require and can simply ‘flex’ the space required as their business needs dictate, which is especially important for start-up businesses when their prosperity may be less certain. Customers joining us will also become part of a business community of over 4,000 businesses.

How is Bizspace finding current market conditions?

The current market conditions are clearly challenging to the sector. However UK SME’s are the life-blood of UK plc and will continue to be so in the future.There is always a consistent churn of businesses in this market with many new start ups, as well as companies downsizing or seeking to move to another location. It is essential that they have the right conditions in which to flourish and we at Bizspace are striving to ensure that we deliver on their need for flexibility when it comes to their space requirements in this constantly changing environment.

We believe that whilst current market conditions are currently challenging for our sector, they will also drive opportunity in the future. Why, because the marketplace is much more competitive currently as traditional property players, desperate to let space following the introduction of the EPR and the onset of the recession, have entered the market to offer “flexible” space. However, these ‘new’ operators will realise the hands-on, pro active service required to succeed in the sector, is not part of their business model and will go back to what they know best when the market picks up. This will drive opportunity as demand is now increasing for our space as the SME market realises that flexibility is available and is good value. Indeed, we have actually seen occupancy increase in 2009 as customers realise that the product that we offer ideally suits their needs.

5.    Do you think there is a future for the flexible space market?

Undoubtedly there is. If this recession has taught us anything it’s that flexibility is critical in all aspects of business in order to ensure that businesses are able to adapt quickly to changing conditions. Given that business premises are a significant cost, it is essential that they are flexible enough to adapt for better or for worse. That can only mean that there will be increasing demand for value for money flexible space in the future.  Flexible space enables businesses to budget accurately and to align their space requirements with their business plans, without massive investment and all the complications involved in long term leases.

What do you mean by flexible space ?

Flexibility means different things to different people, but essentially flexible space means we can adapt our approach to the needs of our customers. We strive to make sure that the businesses in our centres do not have to worry about their accommodation needs so they can focus on what is important, their business.

Most of our customers are small businesses and they have constantly changing requirements. Flexibility to many of them means the ability to change their space as required, so we don’t tie them in to long term leases. If they need more space, we draw up another one page agreement and start again, or if they need additional short term space to store goods, say for Christmas, then we can licence by the week, all of this without the need for costly moving expenses.

Some customers want all-inclusive fixed billing, but some want line-by-line and variable. If a company is unsure as to the viability of the business they may want to start by renting on a monthly basis or even weekly. Some businesses don’t even need a room, so have a virtual office with us and book a meeting room as and when required. To some, flexibility means the ability to change the space they have taken, which again we can facilitate with ease. They may want to put up internal walls and paint them pink or bring in their own technology. If that’s good for their business, it’s good for us and that’s flexibility.

What impact has the changes in the EPR had on the sector ?

I think that the removal of EPR relief will have a significant impact on the sector and more importantly the SME sector. This tax is an incredibly regressive step at any time, let alone at a time when the economy is in such dire straits and will really hinder recovery.

There were two reasons for its introduction, one to incentivise landlords to bring properties back into use and two, to try to reduce rents. In actuality, rents have fallen mainly due to the recession and buildings are empty solely due to a lack of demand in the market and so on top of a drop in rental income, property owners are being taxed on the empty space.

The knock-on effect will be dramatic in the medium term. In the short term buildings are being knocked down to avoid rates, which is contrary to environmental concerns and new development has completely dried up. When the upturn comes, and it will, there will be a complete lack of flexible space for small business, which will stifle that part of UK plc which is the most important to its continued growth and success.

As a result of that, rents will increase rapidly negating the reason for the tax in the first place and so we will be driven into a period of boom and bust again. The short term increase in the relief threshold to £15,000 has helped for one year, but needs to remain indefinitely so that we have certainty and can plan once again to support the SME sector.

Well quite a comprehensive set of answers there, so a big thankyou to Gareth for that one.  If you would like your company featured on here, please email us.  We would also like to hear from centre managers… what is it like running a serviced office in 2009?  info@needofficespace.com.

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