If predictions are correct, 20% of London’s office market will be flexible by 2030. But the industry is not only growing, it is also maturing, said WeWork General Manager for UK and Ireland Natalie Lovett. 

A huge part of that maturity is an increasing focus on providing hospitality that both improves someone’s day and makes business sense for the operator. 

“The serviced office industry has reached the moment where it’s not just about providing a beautiful design and wonderful facilities,” she said. “It’s about giving an exceptional experience within that space, which is the only thing that can compete with home.”

Bisnow spoke to Lovett about why a considered hospitality offering is moving the flex sector forward and how the industry will continue to evolve.

Bisnow: What shifts are you seeing across the flex industry?

Natalie Lovett: Aside from continued growth, members are not just seeking facilities and operations to simplify their own business anymore. It’s about the entire package that makes them want to keep coming back. 

Home is still one of our main indirect competitors. If the pricing of offices wasn’t right, smaller and growing businesses who have to consider every pound they spend would just give employees a laptop to work from home. 

But now they recognise the longer-term benefits of the social bounce-off and the ability to nurture the next generation of employees. 

Bisnow: What is the difference between hospitality and service? 

Lovett: Service, in the simplest terms, is running facilities, making sure the toilets and internet work. Hospitality is the elevated arm, human kindness, knowing what makes people happy. It’s where we think about what makes their day better.

At WeWork, we take it upon ourselves to identify the three most important things for each individual member, whether that’s unfailing wifi and great coffee, and providing them as a minimum. From the moment someone enters the office we want to make them feel welcome by anticipating their needs. 

Businesses recognise this level of extended hospitality and are willing to pay for it, because it takes a lot of effort. That’s why our retention rate is close to 80%. Our members know they’ve benefited from an experience and recognise the vibrancy of the space. 

Bisnow: Would you say that extended hospitality is the new normal?

Lovett: It should be for all operators. We’ve done a lot of training with our team this year as we look to elevate our offering, and we see so much creativity. We want people to walk away from our spaces saying, ‘I can’t believe an office company would offer that’.

We call these unexpected moments when you can surprise someone who’s already having a good day, perhaps adding to their celebration, or provide a pick-up for someone who is having a bad day. We know when members’ grandmas’ birthdays are and buy cakes for them to take home - no one else does that.

For example, in our Shepherd’s Bush building we know Fridays are buzzing as people want to socialise. We recently held a Traitors event, which they loved and was so successful because we knew the office would be busy, and that it would add to members’ day.

Bisnow: Has the flex sector learned about hospitality from other sectors?

Lovett: Hotels, yes, but the industry I’m most interested in is restaurants. The restaurant sector went through a journey of questioning what fine dining looks like, when people completely changed the game to offer not just a meal but an experience. 

Serviced office operators are now serving different portions of the market just as the restaurant market does, and this is really healthy. People can choose whether they’re after cool and trendy or corporate and professional. 

I wouldn’t be surprised if the flex sector creates a star rating system, much like restaurants and hotels. This would make the level of services much clearer to our customer base. 

Bisnow: How does WeWork use hospitality to speak to your target market?

Lovett: Our brand is synonymous with the relationship we build with our members using the fun element of our offering. But we’re also an enterprise company, and we have clients who expect a high degree of professionalism and a white-glove offer. It’s about knowing your team and how to tailor what you offer to that particular audience.

When we do our Net Promoter Score survey, we don’t just ask the company but each individual. We also analyse how people use spaces and services so we know where to put our resources. 

If something we offer isn’t bringing joy to someone’s day, then it’s a waste of money. 

Bisnow: What’s the opportunity for flex providers in offering a high level of hospitality?

Lovett: It’s constantly considering what’s next. There are more trends around wellness, so always thinking about the next service we can reasonably provide and price in. If it makes sense for our members, it makes sense for us, but people have to believe in the value of the package. 

We often do trials before we go live. I’m a big advocate of just asking our members. We just introduced a teabag brand, which we landed on because we asked if that’s what they wanted. 

Bisnow: What’s next for the flex industry?

Lovett: The move towards flex is speaking through the numbers, and as the pie grows, the audience you’re serving grows. There is going to be greater divergence in the services provided as the industry continues to offer different experiences.

But investors are more cautious about investing in spaces and are more data-led, opening sites where there is proven demand. We’re seeing more disciplined growth, where operators have perhaps four sites and open a fifth, rather than 50. 

This is all adding to the reliability of the industry. The days of serviced offices popping up and then closing are gone; it’s an industry that provides not just flexibility but a certainty of each offering. 

This article was produced in collaboration between WeWork and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.