Flexible space operator Clarendon has launched Claro, a service that will design, build and run flexible office space on behalf of landlords.
JLL predicts that by 2030, up to 30 per cent of corporate real estate portfolios will be comprised of flexible or coworking space – and this may be accelerated by the Covid-19 pandemic. Flexspace continues to be in strong demand from SMEs and start-ups, so the opportunity for landlords to enter the market is evident.
Traditional leased space may be viewed as a risk by occupiers who are locked into a contract during turbulent economic times. For landlords, flexspace can bring elevated returns as rates can be revised in time with market demand, and the risk is reduced from reliance on one or two clients over a long-term contract.
The Claro offering has been designed to address this opportunity and to support landlords that have little or no experience of creating or operating flexible space. The flexible office space service can manage any number of buildings within a landlord’s portfolio: it handles the entire process, from the initial consultation and modelling, through to set up, running and ongoing management. Regular reports allow the landlord to take a backseat while retaining visibility over the whole operation.
Ben Hutchen, head of property at Claro said, “The market is demanding speed, flexibility, all-inclusive pricing and hotel-style hospitality when it comes to office space. The pandemic will also lead to an increase in demand for flexspace as businesses balance employees’ desire for a mix of office and home working. It is our priority to assist landlords in entering the market, and rather than creating new space for the market, Claro makes existing space more appealing to a wider range of occupiers.”
Claro is part of Clarendon, a flexible space operator with more than 20 years’ experience in the sector.