A new survey reveals that more than half of UK businesses would pay a premium for top-quality workspaces, shifting the focus away from price competition for workspace landlords.
Businesses prioritise technology over cost
An independent survey conducted by NCG, involving 1,002 senior decision-makers within UK businesses, has found that 31% of respondents consider the availability of advanced technology to be the most crucial factor when selecting a flexible workspace. This is compared to 25% who prioritised cost. Additionally, 31% valued events and networking opportunities, while 28% placed importance on the design and quality of the fit-out.
Demand for premium workspaces
The survey indicates that 55% of businesses are willing to pay extra for a workspace that offers superior technology, facilities, and decor. However, despite the high demand for advanced tech, only 10% of respondents rate their current workspace’s tech offering as ‘very good’, and a staggering 50% report frequent tech failures.
Thomas Proctor, CEO of NCG, highlighted the disparity between business needs and current offerings: “While many UK businesses clearly place a high value on workspace technology, the service they are receiving is not meeting their expectations.”
Retention linked to tech quality
Interestingly, businesses that rate their workspace’s technology as ‘very good’ are less likely to consider moving to a new workspace, with only 57% contemplating a move, which is 19% below the average. This suggests that high-quality tech can significantly impact tenant retention.
Proctor emphasised the necessity for landlords and flexible workspace operators to invest in modern technology: “The data shows that flexible workspaces still have a considerable amount of ground to make up to meet the growing demand for top-quality technology that is essential for UK businesses. Landlords and flex operators need to realise that in the world of flexible and hybrid working, first-class technology is not an area that can be treated as a luxury item or a cost-saving measure.”
Future of flexible workspaces
As the demand for high-quality, tech-enabled workspaces grows, the flexible workspace industry faces the challenge of upgrading their offerings to meet these expectations. Proctor advised: “The flexible workspace industry must embrace modern technology and ensure their clients get the service they and their businesses demand. By collaborating with technology and integration experts, landlords and operators can bring their spaces into the modern world and be at the forefront of modern working.”
Embracing modern technology
The findings underscore a significant shift in the priorities of UK businesses, with technology now a more critical factor than price when selecting workspaces. For workspace landlords, this means that investing in state-of-the-art tech infrastructure is no longer optional but essential to attract and retain tenants. As the landscape of work continues to evolve, those who adapt and upgrade their technological offerings will be best positioned to succeed in the competitive market.
