New Work, one of the leading flexible office space providers in Central and Eastern Europe, launches its Series C capital increase. Its business focus will be on the development of services that address the challenges of the COVID-19 pandemic, such as the 360° Workspace Solution that maximizes office space returns.
“We just closed Series B capital increase with a total of 2.1 million EUR beginning of April. This gave us enough headroom to be prepared for the challenges due to COVID – 19. Now as we see significant opportunities for accelerating our market presence, we will take the chance and increase our equity by raising an additional 15 million EUR as Series C capital increase. The further growth is significant, we will double the number of locations by the end of the year in Poland, followed by Hungary and the Czech Republic. It´s based on the demand from Clients for flex office solutions due to the recession which is in front of us,” says Hubert Abt, New Work’s founder and CEO.
Tenants happy with flexible space
The strategy of New Work stipulates the development of tools using cutting-edge technologies, as they address the needs of tenants and property owners driven by market developments taking place in the COVID-19 reality.
All experts agree. The new reality and the spread of coronavirus globally will bring flexible office space into the spotlight worldwide. Such are the conclusions of the survey performed by Colliers International in April. A sweeping 74 percent of respondents (representatives of IT, banking, insurance and finance) is of the opinion that the way office space is used will likely change. In what way, though? Remote work, either from home or flex space, is bound to increase in popularity. Businesses are also looking at hybrid lease formats. In this setup, a part of the space is let as a conventional office, complemented by a flex office space component.
“Post COVID – 19, flexible offices will constitute as much as 30 percent of all office space available in Central and Eastern Europe. Before the crisis, this figure stood at only 3-5 percent according to our Market Update – Flex solutions post COVID-19, which we published in April. Some players such as Regus indicate a market share up to 70 percent in the near future,” says Hubert Abt.
New Work reaches out to property owners and corporations which are looking for sublease support
On the one hand, property owners need to adapt to the new requirements, too and on the other hand, big cooperation´s which have surplus space for sublease is looking for management power to service such a space for commercialization. That’s where New Work comes in with its 360° Workspace Solution. It is a platform designed to maximize the profitability of commercial office space. As part of the service, New Work prepares a detailed analysis of the space, adapts the design and functions to post-COVID standards, and commercializes common areas to improve their appeal to users and generate new revenue streams. The Space as a Service platform offers real-time performance monitoring capability to property owners. In addition, it helps New Work reduce transaction completion times from over six months to just a few weeks.