Hub & Spoke Real Estate Model & Hybrid Working Drive 27% reduction in real estate costs – NoCo and OfficePal Research

 

An overall net saving of 27% is workspace costs can be seen in the case study where a city centre based company reduces their city centre footprint, implements a hybrid working policy and operates a hub and spoke real estate model. 

The Hub & Spoke case study also shows;

  • 40% reduction in city centre sq ft requirement
  • 50% savings per employee realised when city centre leased office space is replaced by suburban flexible office space.
  • 90% less time commitment required when comparing flexible workspace terms vs traditional leasing terms.
  • Flexible Workspace 25% more cost efficient versus supplying employee with a city centre car space

 

Companies could deliver a 27% overall net savings to their balance sheet if they are to implement a hybrid working strategy paired with a hub and spoke real estate model a case study carried out by OfficePal, financial outsourcing provider on behalf of NoCo, the online platform that enables employers to provide closer to home workspaces to their employees.

 

The case study examined how a typical city centre based company of 139 employees, located in a prime Dublin office location could create a more cost efficient workplace model in response to the recent sweeping changes to the ways of working that see remote & hybrid working becoming the norm for many employers. 

 

The study found that significant long term cost savings can be created by reducing a company’s city centre footprint, implementing a hybrid working model with a 60/40 split of time in the office vs working remotely and then examined how to provide 65% of their employees with a closer workspace for the time they spend working remotely.

The case study not only highlights the overall potential savings that can be made but also the increased flexibility that a company can benefit from by reducing their reliance on city centre leased space and supplementing this with a network suburban based flexible workspaces with a 90% reduction in the time commitment required in flexible workspace in comparison to a traditional lease.

 

While implementing a hub and spoke workspace model can see a 50% reduction in the up front workspace costs per employee, it can also open up further areas to drive cost efficiencies due to the reduced reliance on city centre office space such as a reduction in the number of car park spaces required, which in this study, showed that per annum a flexible workspace in a suburban location is 25% more cost efficient than providing a city centre car park space.

 

NoCo recently launched their online platform that enables employers to discover, subscribe and manage a network of closer to home workspaces for their employees. They have grown their network in recent months to over 350 locations nationwide through a number of strategic partnerships including expansion into the UK with 100 locations surrounding London available on their platform. The online platform provides employers with a service that automates the acquisition, onboarding and monthly billing of the workspaces required by their employees all on one platform.

 

Brian Moran, co-founder of NoCo, said: “The workplace of the future is evolving, for most employers this has always been a significant cost and we wanted to explore what the implications of the recent changes in work practices were for a company’s bottom line this by asking the team in OfficePal to carry out this case study. The results show that as the workspace becomes more fluid and flexible, so too can the costs associated with it.”

John Donnelly, CEO of Office Pal, said: “We were delighted to carry out this case study on behalf of NoCo. We can see that a combination of remote and hybrid working, along with the implementation of a hub and spoke real estate model shows significant potential for driving cost efficiencies throughout the business. While the study primarily focuses on the upfront costs associated with the workplace, it certainly highlights the potential for more savings to be made in other areas of the business through this model.”

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Brian Moran

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