4 October, 2019
“Office-as-a-service”: New product from Space 1 and O1 Properties is targeting large customers

October 4, 2019. Space 1 and O1 Properties are offering a new “Office-as-a-service-product” to large office customers. Space 1 offers ready to use serviced offices in the most popular business locations, using innovative approaches to architecture and engineering design, including enhanced environmental performance and provision to customers of their own IT ecosystem for remote management of office processes.

Customers of Space 1 are medium-sized and large companies, focused on efficiency of their core business, which have occasional need to expand, contract or adapt their office (to reflect business changes or accommodate project teams), while maximising quality, privacy and service.

Space 1 offers a turnkey solution tailored to the customer’s needs and business processes. As well as its own secluded office space, the customer can use additional meeting and conference rooms, recreation areas and other general infrastructure. Space 1 provides a full range of services that includes cleaning, reception and access control, IT and telecommunication systems, office consumables, and catering for staff.

The project will be led by Pavel Barbashev, Managing Partner of Space 1, and by Pavel Fedorov, New Products Director at Space 1.

Large companies want flexible office solutions

O1 Properties is the largest owner of premium office property in Moscow, leasing space at its business centres to major Russian and foreign companies. Such companies increasingly seek lease contracts with flexible terms (in respect of duration and amount of space), reflecting a transition to agile management systems and greater use of scalable project teams. Such teams need offices that can expand, contract and adapt depending on the team size and its tasks. At the same time companies want their flexible offices to meet high standards of privacy, design, planning and branding potential, in order to attract and retain the best staff talent. Coworking premises cannot meet these needs because they do not offer secluded space or the ability to alter layout and organisation of work stations.

Product highlights

The target audience of Space 1 is large companies seeking premises for project teams, and independent, fast growing medium-sized companies. Both groups are unable to predict their long-term needs for office space with certainty, so they are interested in flexible space formats with the ability to change the contract period; but they also want a full-fledged secluded office that allows corporate branding, alteration of work station arrangements, and flexible layout.

Pavel Fedorov, Director of New Products at Space 1, said: “We are offering a turnkey solution and working with our customers to design a long-term, but flexible approach to staff premises that fundamentally changes the traditional approach to office real estate and addresses all issues related to finding offices, contracting, repairs, organisation of work stations, operation, consumables, etc. We are using the most up-to-date approaches to create modern offices with excellent location, visual characteristics, environmentally efficient solutions and a wide range of services. Employees are increasingly sensitive to the quality of their surroundings at work and the advantages offered by Space 1 will give our customers a head start in competition to attract the best staff.”

A feature of Space 1 will be the provision of a modern closed IT ecosystem with maximum automation of engineering systems and equipment control, as well as electronic interaction between Space 1 and its customers. A modern mobile application is used for building access, requests for additional services, and applications regarding operation and office management. Document flow will be fully electronic.

First platforms, development plans

Business centres hosting the first Space 1 platforms are Kompositorskaya (2000 sq. m., opening December 2019), Arbat 10 (4500 sq.m., opening Q1 2020) and Stanislavsky Factory (3000 sq.m., opening Q1 2020). Three more sites with total area of about 10,000 sq.m. are at the signing stage.

The Space1 business format is based on a strong flow of deals with rapid take-up, so Space 1 will work with leading brokers to attract customers.

Pavel Barbashev, Chief Commercial Officer at O1 Properties, said: “A sales strategy using large brokers has worked well for the main O1 Properties portfolio. So we are adapting it for our new business model.”

Space 1 will use fully transparent pricing: all available office space and an up-to-date service cost calculator are posted on the company’s website, enabling brokers to make commercial offers and companies to make office accommodation plans.

Pavel Fedorov said: “We are now carrying out intensive research of the market for flexible service offices, in order to present the new product category to best effect and become the Russian leader in this segment in the very near future.”

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