An interview with Dr André Helf, CEO of the Collection Business Center Group
Coworking is definitely trendy. While the concept of the “temporary office” has not developed far beyond a market niche in the German commercial real estate sector, coworking providers have attracted growth in demand for leases, thus creating a lot of attention. Coworking offers are expanding rapidly, supported by optimistic studies commissioned by influential real estate brokerages. But are prospects really that rosy? Might all-too optimistic growth perspectives lead to overcapacities? Consequently, will there be cut-throat competition, leading to insolvencies and vacant office space?
We talked about those issues with Dr André Helf. He’s been active in commercial real estate for more than twenty years and serves as CEO of Collection Business Center, a provider of business centers and coworking space.
Dr Helf, recently, numerous clients have raised eyebrows about party atmospheres in business centers, disturbing productive and more conservative work environments. Are you familiar with those complaints?
Yes indeed, we’ve heard about that since we survey the market constantly. There are pure coworking centers, focusing on very young target groups who favor a campus character work environment in an open social atmosphere with a cooperative, creative element. However, free-flowing beer taps after hours and spontaneous parties at the office are certainly not everybody’s preference.
What exactly is going on there?
Some coworking centers are running beer bars or promote themed parties, such as “Tequila Nights on Tuesdays”. They allow clients to use office space for festivities, like the celebration of capital increases or other success stories. Often employees show up hungover for work the next morning, and places that are supposed to enhance creative work flows resemble campus party aftermath.
Recently, there has been talk about additional services that prospective clients have viewed as rather disturbing. Why is that?
Coworking center proprietors are trying to develop an image they consider “hip” – and so they’ve designed apps meant to help clients get settled in a new location. Basically, that’s not a bad idea – however, many of those apps store clients’ birthdays, other personal data as well the names of their dogs in order to use the information for target-group specific advertising. Many clients are not exactly fond of those practices.
News from the United States suggest that certain novelties have proven to be more boon than bane. What do you know about those developments?
We know that business centers in New York, San Francisco or Toronto have experimented with programs offering clients private kindergartens or assistance with finding residential real estate. There are bells and whistles like relaxation zones with whirl pools and fitness centers. That may be useful for some. Research shows, however, that many clients see those services as a deterrent. For most, that’s just too much distraction and too little seriousness.
What are your thoughts about those ideas?
Those programs created by coworking centers are targeted at a rather small group of clients: Mostly very young people. With more experience and age, customers’ needs tend to shift and they are likely to ask for such features like discretion, prestigious representation and serious professionalism. Clients with sincere and reputable partners won’t receive their guests in a fog of tequila- and whirlpool-stench. I don’t think the hype with those presumably trendy elements will continue for long. We already see huge vacancies in some of those coworking centers, proprietors are reporting very heavy losses and customers are beginning to understand that many features around the idea of new work communities tend to be marketing gimmicks with very little use.
How do multi-service companies like Collection Business Center set themselves apart from pure coworking centers?
Collection Business Center is a model of an economic hybrid – we combine the advantages of a well-established, conservative business center with the benefits of coworking. Like coworking centers, we offer fully equipped offices with flexible leases, but with a focus on representative and professional appearance. Of course, we also offer open work spaces to entice our clients to engage in creative and communicative exchange. We happily forgo party atmospheres and promote discretion and quiet work environments. Top locations, luxurious fixtures and well-trained support staff are important to our business philosophy. We can provide all that at prices that aren’t above those of pure coworking centers.
The interview was conducted by Mike Remmert.
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