An exclusive report for High Growth Scotland by David Langstane
As neospace announces its plans to release the final floor of its Aberdeen office to accommodate growing demand, we ask: why has this concept been so successful in such difficult market conditions? The last few years have seen an explosion of empty office space across the city. At the same time, neospace has gone from strength to strength. What is the secret of their success?
One major factor underpinning this success can be found in an analysis of market trends. In their 2023 market report, property experts Savills noted that Aberdeen had seen “a strong flight to quality”. As empty offices became a more prominent feature around the city, market reports indicated that at the top of the market the picture was completely different. In 2023 the occupancy rate for “grade A” office accommodation in Aberdeen rose to an astonishing 98%. This move to higher grade offices was fuelled by a need to retain and attract skilled personnel in a post pandemic world. The general market fell, and rates dropped; but, at the premium end, occupancy rates climbed, and rates rose.
These market trends go some way to explaining the “neospace phenomenon”. Clearly, neospace accommodated this “flight to quality” by offering high quality office space. But it offered more. It offered quality at a lower cost. It offered turnkey solutions under flexible contract arrangements. These are difficult things to find at the premium end of the property market. Quality, cost, and flexibility attracted management and business owners alike; quality, allied to the neospace concept of facilitating a harmonious work-life balance, appealed to the occupants themselves. It’s a clever combination that is reaping the rewards it deserves.
In the words of neospace Managing Director, Scott Paton: “Flexibility is essential for success in the modern business environment”. And this flexibility isn’t just about the commercial packages, it includes the service offering itself. He adds, “neospace is delighted to endorse this innovative work style. Our members not only experience a flexible workspace, but they also thrive in a community that nurtures creativity, productivity, and success.”
Neospace opened its flagship centre in Aberdeen in 2021 and the business has grown quickly. Over three floors, a total of 48 companies are accommodated. Office sizes range from 45-desk open plan arrangements to 2-desk offices. And there is a popular co-working space to suit the needs of small businesses or temporary requirements.
Meeting rooms of various sizes offer state-of-the art presentation facilities in high quality surroundings. From board room-type settings to smaller arrangements, clients enjoy the same quality of facilities and services as blue chip businesses in the world’s busiest cities. The building attracts diverse occupants from different sectors, these include energy, renewables, accountancy, recruitment, wealth management, IT, marketing and many other businesses which combine to enhance the overall sense of business community.
More than just a workspace, neospace offers a new model in the work-life balance, where work, rest and play co-exist harmoniously. It stands as the epitome of a holistic work-life experience, integrating warm hospitality, sustainably operated wellness facilities, and a thriving community under one roof. (And that’s without mentioning the golf simulator that appeals to occupants and visitors alike).
One new member of the neospace community shared his reasons for making the shift to neospace. Dave’s business had previously enjoyed an impressive, executive, office suite. But he and his colleague found themselves isolated and lacking in social interaction beyond each other’s company. They felt that this stifled their creativity. Their move to neospace wasn’t driven solely by the financial benefit of halving their office costs, it was also the desire to enter a dynamic environment that supported business and lifestyle goals. Now Dave’s morning starts with a workout in the purpose-designed neospace gym, followed by a steam room session. He takes a break at the Juice Bar around 10.30 a.m. to chat with his colleague and feels he is part of a community that reinforces his purpose.
Another member of the community, Claire Graham, of Thornton Tomasetti, shared her experience: previously her team had been situated in an oversized office in a building with a low occupancy rate. “There were three of us, in a big, empty building. Most of the time we were alone in this building.” None of this was conducive to a sense of well-being. Claire added, “I would recommend neospace as a workspace to people, absolutely”.
Michael Davie of Innovative Partners says of the co-working space, “I am delighted to share my experience with this exceptional co-working space. I have witnessed the consistent dedication to excellence and the fantastic services offered by the neospace staff”.
Managing Director, Scott, is quick to point out that community participation is entirely an optional choice. Each business, and each occupant, enjoys as much privacy as any business or individual might wish to enjoy elsewhere. Everyone in the shared office space is free to engage with others or not. But by being part of a larger community the facilities and the fabric of the accommodations are in keeping with the high quality and standards of a large company.
The social proof of how successful this concept has been, is evidenced not just by the number of occupants, but also by the views of those occupants. Emma Black of Repsol said, “neospace offers a high level of professionalism, and at the same time a relaxed and comfortable atmosphere … It’s a great place to work. A lot of effort is made to bring people together professionally and socially.”
In asking our question about why neospace had succeeded during a general market slump, we could see several good reasons to explain this success. Shared office space isn’t a new concept for the Aberdeen market. But neospace has set a new benchmark. In a market where the availability of premium accommodation is tight and rates are rising, the release of the top floor on Riverside Drive makes a lot of sense.
