Interview with "the independent real estate editorial team" and our CEO, Dr. Tobias Wagner

 

The interview with our founder and CEO Dr. Tobias Wagner was conducted by Walter Senk for “Die Unabhängige Immobilien Redaktion”. It appeared there on July 24, 2020.

 

What does ShareYourSpace do?

Dr. Tobias Wagner: Offices, workstations, conference, meeting and training rooms are usually not occupied 24/7, but are unused on average up to 70 percent of the time. For example, due to vacancy, part-time work, home office, out-of-office days or too much space.

The digital platform ShareYourSpace is the marketplace for offering or booking office space that is not permanently required. It addresses everyone who owns office space, i.e. both owners and tenants, and all those who need office space temporarily, from freelancers to project teams from large companies. Whether an entire office for a year, a conference room for a few days or a desk for an hour, wherever, whenever. We have translated the Airbnb principle into the office world.

 

Their mission is "Boosting Flexibility + Sustainability In The Office World". What does flexible mean?

Wagner: Our platform is aimed at anyone who does not want or cannot enter into long-term, rigid rental agreements. The business of landlords and tenants is dynamic. Being able to react flexibly is important. Rigid space solutions for years to come do not reflect this. That would be like having to have an off-the-rack suit that fits you perfectly, and that too for many years. It is more likely that at some point it will pinch or become too big or no longer meet your expectations.

The operators of co-working spaces have recognized the need for flexible solutions. But they naturally cannot be everywhere where workspace is needed. Their offers are also naturally neither inexpensive nor tailor-made, to stay with the image. And not everyone wants to sit shoulder to shoulder with third parties. A broad, differentiated market offering of flexible workspaces is needed - in the city, in the region. Only the sharing economy can provide this. Hence ShareYourSpace. We address the entire office stock: all locations, all locations, all qualities, all price ranges.

 

On the second part of the mission: Why does ShareYourSpace promote sustainability?

Wagner: Because existing resources - the gigantic office stocks - are better utilized. This means less new construction is required. Less road construction. Less surface sealing. Buildings are responsible for around 40 percent of the carbon footprint worldwide. ShareYourSpace is also a good answer to dealing with daily traffic congestion. The first employers based in the city are already using Office as a Service in the region to provide employees with a professional office environment and save them travel. A typical solution is: one day at headquarters, one day in the home office, three days in a flexible office on site - where the employees live.

 

What requirements must the office space have?

Wagner: A shell is obviously not an option. The office space must be ready for use - plug and work. I think that says it all. ShareYourSpace partners can provide temporary furniture and IT as a service.

 

How long is the maximum rental period?

Wagner: The space provider defines the shortest and maximum rental period for their offer on the platform, the latter usually a maximum of one year. The person looking for space books the offer that suits them: in terms of time, price, location, and the right size. If their needs change, they find a new, more suitable solution. Of course, long-term rental contracts will not disappear, but Office as a Service will become increasingly important.

 

What do the rental contracts look like?

Wagner: Our platform brings the inquirers and the providers together; ShareYourSpace is not a party to the contract. The rental contract is concluded technically and legally when the space provider accepts the booking request from an inquirer. You know the principle from Booking and Airbnb. The provider describes the space they offer, including any services and conditions - this becomes the subject of the contract when the booking is made. In addition, the contracting parties always have the option of uploading additional documents to the platform and making them a condition. But the question arises: how much contract makes sense? What was and is understandably not very successful is shown by a practical example: A corporation that specifically wanted start-ups for its space specified contract documents of several hundred pages. Which start-up has the time and know-how to deal with such legal complexity? In the future, contracts will be practical and simple, and if they are too complex, the market will not accept them.

 

Are you convinced that sharing works?

Wagner: Sharing has been working for a long time and is part of everyday life in many areas. Just think of accommodation or mobility, Airbnb or Uber. The big trends are fueling sharing: digitization, cultural and value change - keywords: use instead of ownership, everything as a service, sustainability, sustainability awareness and, especially in the office world, new work, collaboration, co-working. In addition, the Covid-19 pandemic is acting as an amplifier in the working world.

Sharing is still relatively new in the office market and we are only at the beginning of this development. But the principle of sharing no longer needs to be explained, and more and more people and companies only want to pay when and for as long as they use something. Ten years ago it would have been too early to broker office space in this way.

Make the connection to Airbnb, where many people initially thought that it couldn't work: it was unthinkable that someone would make their private apartment available to strangers! Living room, bedroom, bathroom! The doubters were proven wrong.

Our concept has a similar idea, but it's about other issues. Not privacy, but security and data protection. This is particularly important for landlords. That's why the preferred booking method is one where the booking is only made when the landlord accepts the rental request. The landlord knows who his temporary guest will be - according to the motto "Know your customer, know your partner". The landlord therefore controls who he lets in and who he doesn't - for example, not a competitor or not the Rolling Stones for the release party of their new album. Transparency of the tenant and control are very important for the landlord.

 

Why should someone provide space?

Wagner: There are several good reasons. The most important are:

Firstly, I can earn money with underutilized space without having to invest additionally. An example: A start-up has only found an office that is too big and expects to grow into it over time. Here, every cent saved by subletting the unused space counts. After personnel and IT, space is usually the third largest cost factor.

Secondly, the company can bring tenants into the office who fit in with its own company and, ideally, also use synergies. A simple example: The architect is probably interested in a structural engineer. From landlord and tenant to exchange experiences to a joint project to a joint business. This is already possible with ShareYourSpace: The provider of the office space defines their desired tenant, keyword matching. This enables targeted collaboration in the space.

Third: ShareYourSpace is an opportunity to increase employer attractiveness, as already explained, through Office as a Service close to employees.

The fourth point is commitment to sustainability. Doing good and communicating it too. Climate protection is one, perhaps the central challenge of our time. The most sustainable building is the one that does not need to be built. Putting new certified buildings on greenfield sites and praising their sustainability is not a solution. The answer to the question of how to achieve greater sustainability can only lie in the existing stock. The world is built up, and we must succeed in using these space resources more efficiently. The leverage is gigantic. There is almost a billion square meters of office space in the DACH region alone, which is simply not continuously used to full capacity.

 

How long has the platform been around?

Wagner: We started the venture in spring 2019, with the Commerzbank Group's asset manager - Commerz Real AG - as a founding partner, among others. The platform went online at the end of last year.

 

What benefits does Commerz Real have?

Wagner: Digitalization and the demands for more flexibility on the part of tenants are also putting demands on asset management. With ShareYourSpace, Commerz Real has a complementary value-added service to look after existing tenants and facilitate new lettings. The former when the tenant is given the opportunity to use their free space economically, for example by monetizing it through temporary subletting or through targeted collaboration. The latter when a potential customer is offered the opportunity to sublet their unused space.

 

A look into the future.

Wagner: It will definitely be exciting. We are experiencing a cultural digitalization push. Planning security has been pulverized by the pandemic and its economic consequences, flexibility is more important than ever. The long-standing landlord market is turning into a tenant market. The pressure on space costs has increased significantly due to Corona. Home offices have once again become more important and are creating even more space. In addition, climate protection and traffic relief are challenges that have not yet been overcome. So a lot is flowing together and becoming a powerful stream that will fundamentally change the office market.

 

 

Click here for the interview: "The independent real estate editorial team"