ABSTRACT
‘Traditional’ Category A space has always been offered by developers within the market as designs often required minimal investment and the basic provisions has enabled them to target a wide range of potential tenants – each with varying needs. Fuelled by the growth of companies such as Google, Twitter, Amazon, all of whom champion the exposed services, prospective tenants are now placing greater emphasis on their office space. Exposed services also come with other hidden costs besides construction costs, most notably, energy costs. The cost model is based on a central London office development. Co-working helps resolve the disconnect between a start-up’s initial business plan and the ‘crippling’ commercial property leases which often start at five years.
