Flexible workspace operator Covalt has formally launched to market, having previously signed a number of agreements to immediately manage over 100,000 sq ft of office and amenity space.
Covalt offers owners, landlords and investors a start-to-finish management service for flexible workspaces, covering everything from branding and design through to fit out and community management.
Whether taking over an existing flexible workspace or developing a bespoke proposition, Covalt looks to offer improved returns and the market’s first genuinely white label service, enabling landlords and investors to retain an existing brand or develop their own flexible workspace offering.
The flexible workspace operator has already signed agreements with major industry players and has similarly ambitious growth plans.
Within the next five years, Covalt aims to have over a million sq ft under management and a minimum of thirty centres, chiefly across London and the South East, but targeting key cities including Bristol, Birmingham, Manchester and Leeds.
Covalt was founded by former Cushman & Wakefield flexible workspace executives, Calum Russell (CEO) and Dave Moran (COO), as well as Julian Arlett (CFO) from luxury hospitality group Habitas. Combined, the team has more than forty years’ experience across the flexible workspace and hospitality sectors, having previously worked for the likes of NewFlex, Hilton, easyHotel, De Vere Hotel Group and the Malmaison & Hotel du Vin Group.
The team will draw on this unique experience, bringing hospitality style-service and amenities to flexible workspaces.
Russell says: “The operator model for flexible workspace is ready for change.
We offer a true white label service and balanced management agreements that are structured to work for the benefit of all parties.
I believe this is what the industry has been looking for.
“Landlords are increasingly aware that their portfolios need to better reflect the needs of occupiers.
The operator model for flexible workspace is ready for change.
There’s been a rapid evolution in expectations from clients with many now aspiring to work in spaces that draw their inspiration from hotels, offering world class design, fabulous amenities and great service.
Our mission is to not only drive forward the transformation of how office space is delivered but also to make the relationship with landlords more open and transparent.
“Repeated interest rate hikes have saddled some landlords with increasing debt.
This means there is a major opportunity for Covalt to roll out a service that can help drive up occupancy and increase returns.
More broadly, flexible workspace is a sector in demand, and all the signs point to continued growth - we believe it is the right time for an offer like ours.”
Emma Swinnerton, EMEA Head of Flexible Workspace at Cushman & Wakefield, says: “Covalt is a really interesting proposition that fills a clear gap in the market.
The team has a strong combination of flexible workspace and hospitality experience to make a real success of the business.
Just as the emergence of flexible workspace drove significant change in the office market, the sector itself is now seeing growing demand from occupiers for hospitality-style service.
Covalt’s launch comes amid soaring demand for flexible office space, with the global flexible space market anticipated to grow by 17% between 2020-28, according to the Global Flexible Space Market Outlook 2028 report.
