Shared Desk Model
A flexible office arrangement where multiple workers use a single physical workstation at different times, rather than each having a dedicated desk. This model optimizes space utilization and reduces overhead costs for businesses.
Key Takeaways
- The Shared Desk Model optimizes office space by not assigning permanent desks to individual employees.
- It helps businesses reduce operational costs by requiring less physical office space and associated expenses.
- This model offers flexibility for employees, especially those working remotely or on hybrid schedules, improving work-life balance.
- Real estate investors can attract diverse tenants, including startups and small businesses, by offering flexible shared desk solutions.
- Effective implementation requires good management, scheduling software, and clear guidelines for users.
What is the Shared Desk Model?
The Shared Desk Model, also known as hot desking, is an office strategy where workstations are not assigned to specific individuals. Instead, employees use any available desk when they come into the office. This approach is gaining popularity as more companies adopt hybrid work schedules, allowing employees to work from home part of the week. For real estate investors, understanding this model is crucial as it influences tenant demand, property design, and potential revenue streams in commercial real estate.
How the Shared Desk Model Works
In a Shared Desk Model, a company might have 100 employees but only 60 physical desks, assuming that not all employees will be in the office at the same time. Employees typically reserve a desk using a booking system or simply choose an open spot upon arrival. This model requires clear guidelines for desk etiquette, such as cleaning up after use, and often relies on technology like desk booking apps and digital signage to show availability. For property owners, offering spaces designed for shared desks can attract tenants looking for cost-effective and flexible office solutions.
Key Benefits for Property Owners
- Increased Occupancy Potential: A single physical space can serve more users over time, potentially increasing the overall tenant base.
- Higher Revenue per Square Foot: By accommodating more users in less space, property owners can achieve higher income per square foot compared to traditional dedicated office setups.
- Attract Diverse Tenants: This model appeals to startups, freelancers, and small businesses that need flexible terms and don't require permanent offices, broadening the potential tenant pool.
- Reduced Tenant Fit-Out Costs: Less need for custom office build-outs for individual tenants, as the space is designed for general use.
Real-World Example
Imagine a real estate investor owns a 5,000 square foot office building. Traditionally, this space might accommodate a single tenant with 25 dedicated offices, generating $15,000 per month in rent. By converting it into a flexible co-working space using a Shared Desk Model, the investor could offer 50 shared desks, along with common areas and meeting rooms. If each shared desk is rented for $350 per month, and assuming an average occupancy rate of 80% for the desks, the potential monthly revenue could be significantly higher.
Calculation: 50 desks * $350/desk * 80% occupancy = $14,000 per month from shared desks alone. Adding revenue from meeting room rentals and private offices within the same space could push total income to $20,000-$25,000 per month, demonstrating how efficient space utilization can boost Net Operating Income. This strategy allows the investor to maximize the building's potential by catering to the growing demand for flexible workspaces.
Frequently Asked Questions
What is the main difference between a shared desk model and a traditional office?
The main difference is desk assignment. In a traditional office, each employee has a permanent, dedicated desk. In a shared desk model, no desks are permanently assigned; employees use any available workstation, often on a first-come, first-served basis or through a booking system. This allows for greater flexibility and more efficient use of space.
What technology is needed to implement a shared desk model effectively?
Effective implementation often relies on technology such as desk booking software or apps, digital signage to show real-time desk availability, and robust Wi-Fi infrastructure. Some setups also include smart sensors to track desk usage and optimize cleaning schedules. These tools help manage reservations, monitor space utilization, and ensure a smooth experience for users.
How does the shared desk model benefit real estate investors?
For real estate investors, the shared desk model can lead to higher revenue per square foot by accommodating more users in a given space. It also broadens the tenant pool to include businesses seeking flexible, short-term, or cost-effective office solutions, such as startups and small companies. This can increase property value and tenant retention by meeting evolving market demands.
Are there any downsides to implementing a shared desk model?
Potential downsides include a lack of personalization for employees, challenges in maintaining cleanliness, and the need for robust management systems. Some employees may also feel a loss of community or struggle with finding a consistent workspace. Property owners must address these challenges with clear policies and good operational management to ensure tenant satisfaction.