The Instant Group, the flexible workspace specialists, have completed the first innovative Co-Lease deal in London at Fairfax House, Holborn, in partnership with landlords Dorrington Plc.
The Co-Lease deal comprises a two-year lease term for the 2,800 sq.ft. space which has been fitted out and fully managed specifically for SPHERE Technology Solutions, the cyber security experts, by the Instant Group, on behalf of Dorrington Plc, who own the building.
The deal represents a new way for landlords to provide more flexible, fully serviced office solutions to the market and cater for the ever-increasing occupier demand for the sub 5,000 sq. ft. flexible market.
John Vaughan, Managing Director of Instant said:“The Fairfax House deal is representative of the new direction in which landlords are taking their portfolios. They are providing much needed choice for the 20+ workstation customer, who are seeking all the benefits of the serviced office, housed within their own branded, private office space.”
The initial deal provides 45 workstations with the opportunity to increase the desk capacity to 68, upscaling as and when required. The fully-managed space was offered to customers on flexible lease terms from two years upwards, and fully fitted occupation was delivered within four weeks of the lease being signed.
The space at Fairfax House was on the market for less than two months from listing to occupancy. SPHERE will pay a fixed all-inclusive monthly cost to Dorrington while Instant will be responsible for the fit-out and ongoing services within the space.
Vaughan continues: “SPHERE will benefit from short form lease terms, rapid occupancy, full facilities management services including IT, all at a fixed monthly cost with their name on the front door. This is the first deal of its kind in central London and we expect to see many more in the coming months as we continue to work with landlords to bring more Co-Lease space listings to the market.”
According to Instant data which is based on twenty years of flexible workspace transactions, demand from occupiers for 20+ desk space – which equates to approximately 2,500 sq. ft. – has increased by 62% over the past five years in London and has risen by 11% in the past 12 months alone.
Enquiries from corporates in this part of the market have also doubled as more flexible solutions come to the market and are no longer seen as only relevant to SMEs and start-ups. However, research by Instant and commercial listings portal Realla shows that there are 1,300 office locations across London offering traditional letting options between 2,000 to 5,000 sq. ft. of space that are currently sitting unoccupied.
“There has been a significant increase in demand for this type of flexible solution under 5,000 sq. ft. in space and many, if not all, landlords are looking at new ways to meet this demand,” explained John Vaughan. “These clients want their own branded space that offers full service, agility for their business, but also privacy. Landlords have some of the best located properties; the barrier to successful lettings is peddling the traditional lease approach, but through our Co-Lease offer we have a solution to that. This is a chance for landlords to connect the existing supply of sub-5000 sq. ft. space to clients that are looking for flexible workspace solutions rather than conventional leases.”
Robert Harris, Director at Dorrington, said:“The Fairfax House deal is the first of what we hope will be many within our portfolio that satisfy the increasing demand for flex solutions, delivered in collaboration with Instant. Co-working and business centres are a great solution but they are not right for every occupier. Offering a private, customer branded space with its own front door in a traditional multi-let office building, ready for almost immediate occupation on a short form contract is an enticing proposition for this growing section of the market.”
