Think Beyond Brick: Top Strategies For Generating Revenue Outside The Fixed Office

• Transforming underutilized office spaces into multi-use, revenue-generating assets is key to adapting to modern work needs.
• Successfully launching an expanded workspace product hinges on a nimble strategy encompassing product alignment, market-driven pricing, and fostering community engagement.
• Leveraging technology, like AI and IoT, can enhance space management and user experience, driving both operational efficiency and customer satisfaction.

Reprinted from Allwork.com, published June 4, 2024.

Yes, people are coming into the office to work. 

No, the office is not dead — but the experience has changed. 

According to Gensler’s 2023 Work, Life, and the Workplace Survey, employees believe they need to spend at least 63% of their time in the office to be most productive, even though they currently spend only 48% of their time on-site. The discrepancy is largely due to the office experience — the “vibe” and range of available spaces — often not meeting employee needs. 

The evolving nature of work presents an exciting opportunity for building owners and flexible workspace providers to reimagine traditional office spaces. Forward-thinking owners and operators are transforming both indoor and outdoor areas into revenue-generating assets that align with and enhance modern work. 

However, this is not a simple task. Just creating new spaces doesn’t guarantee they will be used or monetized. I’ve toured many flexible workspace locations and buildings with empty meeting rooms, event spaces, terraces, and open areas. 

Launching an expanded workspace product offering requires a nimble strategy that continuously evolves with the product, incorporating demand generation tactics, pricing, promotion, and service delivery.

How can you boost revenue with the space you already have?

I recently spoke with Natasha Asare, Co-Founder and VP of Strategies and Partnerships for MeetingRoomz, who shared her best practices for packaging, pricing, promoting, and delivering an expanded workspace product line. 

Her insights help boost foot traffic, member satisfaction, and income by providing spaces that are most relevant to how people work today. 

Q: I’ve surveyed hundreds of locations across several countries and found that spaces outside of the fixed office are underutilized but have great potential for generating revenue. What strategies do you recommend for operators looking to monetize their unused or underutilized space beyond the fixed office? 

A: There are three key areas to focus on: product, price, and partners. With regard to products, we look at our available spaces with fresh eyes to align our workspace products with market demands. Rather than relegating the space to one purpose, we’ll adapt a space that was slotted as a team room or training room to spaces where we can host networking events, workshops, pop-ups, or photo and video shoots. 

Fun fact: video shoots can command £20k or more a day! 

I suggest catering to various user needs and niche markets with flexible options like part-time offices, rolling agreements, or meeting room memberships, which attract niche communities like entrepreneurs and founders. 

Foster a community through social and business networking events to enhance the space and create cross-selling and collaboration opportunities. The key is to rely on customer feedback to guide the evolution of the workspace offering.   

Q: What role does price and promotion play in your strategy?

A: Getting pricing right is important. I recommend conducting market research to ensure the price fits the market’s needs and train team members to effectively convey the unique selling proposition to convey the true value of the offering. Tailor promotions to maximize space usage by offering reduced pricing or incentives for underutilized days and times.  

Q: For me, the foundation of a demand generation strategy is to drop my hook where the fish are swimming. In other words, I aim to be omnipresent where people are searching for my product or service and are likely to buy. This makes aggregators and marketplaces my top priority. What are your thoughts on demand generation and partnerships?  

 A: I agree. Partnering with Marketplace platforms should be the first layer of the plan. These platforms connect operators with individuals and businesses needing short-term and on-demand spaces, which can generate consistent and volume-based revenue. 

Your spaces will need to pop off the page because the competition is appearing right next to you. Have a strong brand identity, great photos and implement target marketing efforts to attract users. Highlight USP’s amenities and value propositions to create a competitive advantage.

Consider embracing and incorporating sustainable practices and design within the space to appeal to environmentally conscious users and businesses. This will add value to the space and will attract like-minded users.  

Q: What are the most common challenges businesses face when trying to generate revenue from non-traditional spaces, and how can they effectively overcome these obstacles? 

A:  We’ve focused on the fixed office for so long that many operators struggle to understand customer needs. Market research helps operators understand demand and customer preferences. 

When you have data insights and market intelligence you can build “fit to purpose” products within your facilities, so you are spot on, and provide what is there for search. 

It’s important to have solid operational processes and procedures. 

On a basic level, it’s important to greet members and make the perfect first impression every time! Ensure amenities are top-notch: fast and reliable Wi-Fi, good coffee and tea, a spotless environment, and convenient services like parking. 

Focus on customer retention and satisfaction, even though it can be challenging due to varying user needs. 

Use customer engagement strategies like satisfaction surveys, and make sure your team is responsive and engaging to build a sense of community. Show appreciation by offering useful promotions, such as discounts or vouchers. Users will return to spaces where they feel valued and heard. 

Q: How does technology enhance the monetization of non-traditional office spaces, and could you provide examples of tools or platforms that facilitate this? 

A: We are in an age of technological transition, where we have recently seen the boom of Web-3 (blockchains) and now AI. Has our category embraced this fully? I believe the answer is no. 

The combination of both Web-3 and AI drives community building, and decision-making, and simplifies human experiences. 

Imagine that your workspaces are similar to auto-drive cars, whereby your users have autonomous workspaces, where they can access and engage with the space all on their own without any human interaction — all integrated through AI and block-chain (IoT) Internet of Things, such as smart buildings, security access QR codes, identity verification and self-check ins. This will enable operators to concentrate and focus on managing their business and engaging in meaningful human interactions.  

Q: A great technology partner can improve the efficiency of your business and automate your customer engagement and sales cycle so that you have more time to improve customer experience and scale your business. There are a lot of partners in the market right now. In your opinion, what role does each technology partner play in the product delivery?  

A: I break partners out into a few broad categories. For example, online booking platforms and marketplaces streamline the booking process, allowing users to search, reserve, and pay for space online. Operators benefit from minimal administrative interaction and secured revenue. 

IoT technology optimizes underutilized space, improves energy efficiency, enhances user experience, and reduces operating costs. 

VR and AR technologies create immersive virtual tours, enabling users to remotely explore and evaluate spaces, ensuring they meet their needs. 

Space management software helps operators efficiently manage and optimize spaces with features like resource allocation and billing.   

Q: From your perspective, how does monetizing extra office space impact the core business financially and operationally? Are there risks of diluting the brand or disrupting primary business activities? 

A: Monetizing extra office space can impact the core business financially by providing additional revenue streams. 

There is so much inventory currently sitting empty. If executed correctly, every single penny will go to the bottom line, improving overall revenue and profitability, which can also be reinvested back into the business. 

Of course, there are risks of diluting the brand and disrupting primary business activities. However, as an operator, you should carefully evaluate the potential impact of monetizing additional space on your financial health, operational efficiency, and brand reputation. 

You can evaluate through market research, establishing clear agreements and guidelines, and maintaining alignment between revenue-generating activities and the company’s core values and objectives. 

Additionally, businesses should regularly monitor their performance and be prepared to adapt strategies when required to minimize risks and maximize opportunities. 

Q: Could you share a success story of a business that has effectively monetized its extra space? What were the key factors that contributed to their success? 

A: I worked on a location that was a blank canvas, designed for coworking, meetings, and events. The focus was on selling memberships, meetings, and events. 

We adapted the membership structure to attract more users and increase sales. Additionally, we defined alternative uses for the coworking space, allowing it to double as an event and networking venue, creating multiple revenue streams. 

Introducing new products, like dedicated desks, met customer needs, such as a team of 50 using the space one day a week. We also monetized outdoor spaces like courtyards and gardens, generating steady revenue from areas not typically associated with income. 

The three key factors for success were: Thinking outside the box to monetize any space, whether indoor or outdoor, catering to user requests that might not align with your original vision but have market demand, and using flexible, movable furniture to adapt spaces easily.  

Conclusion  

The changing landscape of office use presents a valuable opportunity for building owners and flexible workspace providers to rethink traditional office spaces. The findings from the Gensler survey underscore the need for dynamic, engaging office environments that meet employee expectations and enhance productivity. 

By adopting innovative strategies like those shared by Asare, businesses can transform underutilized areas into vibrant, revenue-generating assets. 

By focusing on the right mix of packaging, pricing, promotion, and service delivery, these spaces can become essential hubs for modern work, boosting foot traffic, member satisfaction, and income.