High street regeneration: lessons from the flex space sector

The worst thing that can happen to a high street is no one visiting. It’s a vicious cycle, as footfall drops, making it harder to attract new businesses that would, in turn, help attract new footfall and spend.

But there are lessons the custodians of high streets – local councils – can learn from the flexible workspace sector to help revitalise town centres.

High streets never used to be just one thing. The rise of retail pushed up rents and values and pushed out other uses and smaller businesses, and then many of the reasons for using a high street disappeared online.

The first lesson from flexible workspace is that it isn’t exclusive anymore. You don’t necessarily need a big space and expensive fit-out to make a successful and attractive amenity. What counts is the appropriateness of the offer to the local market and what you build around it.

There’s a good example in Matlock, Derby. Co-working Corner is a tiny flexible office with some fixed desks and hot desking options. It is a fairly simple but good-looking space with an emphasis on being a welcoming community for humans and dogs alike! It offers an affordable alternative to working alone at home, while at the same time giving more people a reason to visit the town centre.

The second lesson is about curation. Savvy developers see the benefit of having a carefully curated mix of uses that feed off each other and create a compelling offer. Take L&G, which has included flexible workspace alongside retail and leisure at its large residential scheme in Wandsworth, South West London. Flexible workspace wouldn’t be part of the mix if the developer didn’t see a benefit in including it.

Another example is Oru Space which mixes health and well-being amenities with workspace. Members who use the workspace get discounted access to the fitness and well-being classes, treatments and counsellors. The two feed off each other, and both act as a draw.

The key is understanding what will work within any particular market. Co-working Corner works in Matlock but wouldn’t necessarily work in Marlow. And local authorities have an advantage here because they understand their local demographic.

The third lesson is partnerships. Flexible space operators are adept at working with building owners and other amenity operators. For councils, leasing to a flex space operator is the neat, easily understood option as it offers a guaranteed income. Opting to partner with an operator is riskier because there is no guaranteed income, and it could potentially affect the value of the building, at least in the short term.

However, there are longer-term benefits in partnerships as it gives the council more control over the space and how the offer fits with an overall town centre revitalisation strategy. It becomes part of the curated mix and an asset to offer potential new businesses.

West Northamptonshire Council’s Vulcan Works in Northampton (pictured) is a good example of a partnership in action. Working with South East Midlands Local Enterprise Partnership (SEMLEP), it has converted a Grade II listed Victorian warehouse into a workspace hub for freelancers, start-ups and small businesses.

Oxford Innovation Space runs the hub, and as well as workspace and amenities, it offers business growth support. Vulcan Works forms part of a wider town centre regeneration and is expected to support around 150 start-up businesses in its first 10 years creating 500 jobs in the area.

It is helping to put people back into the town centre while simultaneously nurturing business and creating a community. The flexible workspace offer has evolved, and high streets are evolving. The two can work together.