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How You Work: People, Places & Flexible Workspaces
THE REGENERATION EFFECT
Despite the influence of technology on global socio-economics and the
notoriety of ‘Silicon’ clusters, the sector has historically emerged from city
fringes, away from the CBD.
Leveraging an inherent ability to transact and service
online, product-led technology companies have been
free to locate in cheaper, edgier city fringes, motivated
by larger space and lower rents. The sector brings with
it a highly skilled, well-incentivised workforce, attracted
by its fast-growth, high reward potential, and undeterred
by location. The effect of that migration of resource and
competency is twofold: (1) it attracts complementary or
competitive companies to the area; and (2) it establishes
a demand for support services and amenities. That
causal chain gives rise to a
regeneration effect
; inward
investment to an area that increases its overall value to
businesses and residents alike.
Flexible Offices are often first to answer the demand,
providing the infrastructure and support companies
need to setup. In fact, occupancy levels in a Flexible
Office provide a strong indication of an area’s economic
health, since it not only supports companies to start
but also assists them to grow through its product
suite. Though in the past, regeneration has unfolded
slowly and organically, with commercial success feeding
residential investment, today developers are successfully
engineering the multi-facets of a high-value area in one
sweep. Bringing together established and early-stage
companies, local and national retailers, residential
developments and transport links, investors are able to
cultivate demand and populate new areas in a shorter
timeframe. Flexible Offices ensure the vital injection of
business diversity that stimulates many of the social
dynamics that follow.