The Multispace high-tech service office network has wound up year-end results for last year. Once the network opened its Multispace Dinamo flex space with a digital ecosystem last October, it not only rated in the top 10 of the largest network operators in Moscow, but demonstrated excellent sales results: against the background of vacancy as high as 35% on the flex office market as of the end of 2022 and growing supply on the secondary market, over 80% of the new flagship venue Multispace Dinamo was leased within three months of its official opening.
At year-end 2022, the total portfolio of the Multispace network was nearly 14 thousand sq. m., including two projects: Multispace Paveletskaya, measuring 3.4 thousand sq. m., and Multispace Dinamo, measuring 10.5 thousand sq. m. Among service projects coming out on the market last year, Multispace Dinamo was the only venue that managed to reduce its vacancy significantly. It was 18% at year-end.
The total number of Multispace Dinamo residents has reached over 3.6 thousand employees with 963 workstations used in the project. All residents work in a flexible hybrid format and actively implement the Activity Based Working concept, due to which the ratio of tenant’s workplace use varies from 1:1.5 to 1:5.
Companies from various business sectors (manufacturing, IT, development, and services) that are ready to move their headquarters to service space as a long-term solution are taking note of the Multispace network. In particular, there are the leader in audit and consulting services Technologies of Trust (former PwC), who leased 4.5 thousand sq. m. for its new headquarters at Multispace Dinamo, federal developer GloraX that placed 200 employees in the projects, a large Russian manufacturing company, as well as a leading global provider of office technologies and services.
In 2022, the trend for built-to-suit solutions according to Multispace standards grew actively. Two projects were implemented within that framework: an office with the area of 1.5 thousand sq. m. for developer company MR Group at the Neva Towers Business Centre and another, measuring 6 thousand sq. m., for T1 IT Company at the Arena Business Centre.
Additional Services Not Just for Residents
A new multifunctional event venue was opened on 1 October 2022 at Multispace Dinamo with capacity of up to 150 people. In the 4th quarter, in addition to corporate events for the residents, the venue hosted a number of external events, such as a business session for Office Next Point, a conference for Kommersant Publishing House – “Year-end Results. Commercial Real Estate”, and others.
On 1 November 2022, the first on the market digital corporate café, integrated into the residents’ mobile app, was launched at the Arena Business Centre. Multispace operates the café; however, it is available not just to Multispace residents, but to all tenants of the business centre via the guest version of the Multispace mobile app, which is the first to be presented on the market.
Multispace A Positions on the Market: Space Increases, Vacancy Goes Down
According to Commonwealth Partnership’s data as of December 2022, the average level of vacancy on the market was 35%, remaining within 40% from quarter to quarter throughout the year. The Multispace service office network demonstrates a reverse trend of vacancy, namely its rapid decrease. The vacancy in the Multispace Dinamo has gone down to 18% since the venue was officially opened in October.
Network Growth in 2023: Stake on Smart Office
The operator plans to ensure 100% tenancy at Multispace Dinamo in the first six months and to continue expanding its portfolio in the capital city. Due to active demand for the Multispace product, around 15,000 sq. m. are planned to be added to the portfolio in the capital region in 2023, as well as a venue to be launched in St. Petersburg. The team will also continue to work on new built-to-suit projects by Multispace standards.
Multispace continues its active international expansion, in particular, partnering with co-investors on the Dubai market under the iSpace brand. It is planned to open the first venue, measuring nearly 1 thousand sq. m., as early as March 2023 and the second one, measuring nearly 2 thousand sq. m., in the third quarter of 2023. The total number of workstations in the two service facilities will be 350.
Multispace Dinamo has already invested 385 million roubles in building internal digital product. Its digital solutions include, among others, a wide range of Face ID and video access control services, multimedia infrastructure, Web interface, and many others. The in-house Multispace mobile app allows automation of all office functions and space adaptation for specific needs of the company and each employee, as well as management of various office locations of the company. All software used is developed inhouse, which makes the project independent of sanctions pressure.
Multispace plans to launch a new version of mobile app as early as the first quarter of 2023. It will have an improved user-friendly interface, additional convenient functions for improved employee communications, and more convenient office services management. For instance, the new app version will have an option to reserve and open lockers remotely (right now they work either using the Face ID system or a PIN code), there will be additional convenient functionality for selection of work typologies from the space map, an option not only to find an employee at the office and email/call them, but also to create teams for various projects, internal chats for better communications, and many others.
Multispace highlights the fact that agile transformation is no longer just a fashionable trend. The need to optimise office expenses and ensure efficiency of business processes in the hybrid work environment has created a real demand for facilities where such an approach brings results. This can be achieved using advanced digital tools: it is technology that gives each employee an opportunity to manage all office options quickly and freely, personalise their workspace, and build a personal schedule.
“The 2022 results confirm that the ideology of the Multispace product, based on providing a complete high-tech solution for managing flex space, has a huge potential for further growth. According to remote work research results of the leader in audit and consulting services Technologies of Trust (former PwC), over 79% of companies in various industries practice hybrid work these days. This unavoidably leads to reconsideration of the role the office plays in the life of a company and the growth in popularity of agile offices that are seen as an opportunity for improving work efficiency and optimization. At Multispace, we managed to ensure a radically different level of interplay between a person and their work environment, mostly due to an advanced digital ecosystem and well-thought-out flexible architecture. I am positive that our product and ready-made solutions will continue to help large corporation to make a choice in favour of the flexible service format.”
