36 / 58
OPPORTUNITIES
Why doesn’t “meanwhile use” work for all
occupiers?
As ever, there are various hurdles when disruptive
ideas come to the forefront. One of the first issues
to overcome is the legal framework surrounding
meanwhile uses.
Often, the real challenge is a change of mind-set.
With disruption comes resistance; the real estate
industry being a strong culprit of this. In an industry
which constantly analyses risk and reward, how can
you promote a new concept with many unknowns
and potential risks:
>
>
Cost exceeds value derived
>
>
Disgruntled landlords or nearby tenants
>
>
Wasted time and resources
>
>
Increased reinstatement exposure
>
>
Increased insurance premiums
>
>
Damage to PR and brand
>
>
Success is very location/building specific
Despite the risks, the success stories speak for
themselves – with great risk, comes great reward.
Risk reduction
• For fast-growing companies, real estate can’t keep up
with their growth, offering their ‘swing space’
as a meanwhile use until they require
the space, providing an interim income
stream
• For occupiers of meanwhile uses, both
in terms of cost and commitment
Culture
A dynamic flexible
space defined
by the people
who occupy the
space, fostering a
sense of place and
distinctiveness
Collaboration
Occupiers of meanwhile uses
taking advantage of the sharing
economy
Opportunity of failure
To experiment with
new businesses and
ideas with lower
commitment, cost and
risk
Affordable workspace
Opportunity for
occupiers to operate
in markets previously
inaccessible to them
Brand building/corporate social
responsibility
Reflection of company culture
• For head-
tenant who
subleases to a
meanwhile use
• Meanwhile use
occupiers
Employment
Employee attraction and retention of top
talent – Generation Z who see work as
an experience, and desire a unique and
flexible working culture
Financial
• Improved brand and CSR, indirectly improves profits
• Cost savings for head tenants
• Opportunity for occupiers to monetize excess ‘swing
space’
• Affordability – reduced workplace costs, grants
• Tapping into night time economy –
maximizing capitalization of space
• Meanwhile uses may not begin as a
financially beneficial option, but they
often end up evolving into successful
businesses
DISRUPTION
Peerspace, America
An online marketplace connecting
professionals and businesses to short-
term space easily. They offer underutilized
spaces for photo shoots, offsite meetings,
product launches, and charity events in
locations such as San Francisco, San Jose,
Los Angeles, New York, Seattle, Austin,
Chicago, and more.
36 The Occupier Edge