Partner Article

The rise of the move-in ready office: Parker Knights

Parker Knights
www.parkerknights.co.uk
www.pioneer-re.com
LinkedIn: Parker Knights | Pioneer Real Estate

In an ever-changing commercial and economic landscape, demand for workplaces that meet business needs has never been more acute. A significant element in that evolving environment is speculatively fully fitted office space, which significantly reduces fit-out costs and avoids lengthy downtime. Here, Michael Downey, founder of Newcastle-based office real estate agency Parker Knights, and Elliot Burkeman, founder of London-based national real estate investment, development and asset management firm Pioneer Real Estate, assess why speculatively fully fitted office space makes financial sense and why more occupiers should consider the model in growth strategies.

Michael: What does speculatively fully fitted office space mean?

Elliot: It means the landlord has fully fitted out the office before a tenant is in place, at their own cost and risk. The space is move-in ready and is designed, furnished, connected and complete.

Michael: Why do landlords fit out office suites before securing a tenant?

Elliot: Occupiers today, particularly SMEs and growing businesses, don’t want to spend six months and significant capital getting a space ready before they can use it.

They want to see what they’re getting, make a decision and move into a space.

By delivering a fitted product, landlords reduce void periods, increase the number of potential occupiers and offer something genuinely competitive in a market where quality matters as much as location and price.

Michael: Have you seen occupier demand change in recent years to drive this approach?

Elliot: The shift to hybrid working has fundamentally changed what businesses need from offices.

Headcounts are more fluid and there is far less appetite to commit significant capital to a fit-out when the future feels uncertain.

A lot of businesses want flexibility, speed and quality without the financial exposure which speculatively fully fitted office space provides.

Michael: What are the main advantages for a tenant moving into a pre-fitted office?

Elliot: Simplicity.

The moment heads of terms are agreed, the tenant knows exactly what they’re getting, from layout and furniture to infrastructure.

There is no procurement process, no contractor to manage and no decisions to make under pressure.

A traditional fit-out typically takes four to six months at a minimum; a fitted suite reduces that to a number of weeks.

Michael: Is a fitted office more expensive than a traditional lease?

Elliot: The headline rent is typically slightly higher than an unfitted equivalent.

However, once design, construction, furniture and project management costs are factored in, the fitted option often compares favourably.

Michael: Are speculatively fully fitted offices designed with flexibility in mind?

Elliot: They have to be.

We’re designing for an occupier we haven’t met yet, which means the space needs to work for a wide range of businesses and working styles.

At the Newcastle-based West One office building, we create modular layouts that can accommodate open-plan working, enclosed meeting rooms and quiet focus areas, as well as kitchen and social space.

Michael: What types of occupier benefit most from fitted office space?

Elliot: SMEs and scale-ups are the most natural fit.

We also see strong demand from international businesses entering the UK market, which don’t want the complexity of procuring a fit-out from overseas.

Michael: How does fitted office space compare to serviced offices or co-working spaces?

Elliot: Serviced offices offer maximum flexibility but come at a cost premium, limited privacy and little scope for brand identity.

Co-working suits individuals and very small teams, but becomes unwieldy at scale.

A fitted suite on a conventional lease gives an occupier its own front door, its own environment and a lease term that provides stability.

Michael: What advice would you give to occupiers considering this type of space?

Elliot: Look past the headline rent and assess what you would spend on a fit-out, how long it would take and the risks it would carry.

Then compare that honestly against a fitted suite.

There is value in certainty. In business, time and predictability are worth more than most people price them.

For more information about Parker Knights and the services it provides, visit the website at the top of this article.

This was posted in Bdaily's Members' News section by N Magazine .