Despite the ongoing pandemic, Mindspace continues to expand its operations in Israel through its innovative management agreements model that allows the leading flex workspace provider to partner up with property owners. The new branch “Mindspace La Guardia” will open in March 2021 in the new Vitania Tower at the La Guardia junction in Tel Aviv.
Mindspace reports that a ‘return to the office’ work routine is on the rise recently, and it anticipates the amount of remote workers to decrease in 2021 in light of the deployment of COVID-19 vaccinations. Offices that are equipped to offer employees a work model adapted to the current period and new reality are the ones expected to prevail the most.
Mindspace reports an 83% rise in the number of deals in Israel in recent months, compared to the same period last year, as well as growth in demand for hybrid solutions. In the past quarter (Q4 2020), many companies joined Mindspace under the format of hybrid solutions in various flexible configurations that include managing employee attendance in cohorts, expanding or reducing office space according to the customer’s needs, or using spaces part-time instead of daily.
Besides startups and small businesses, Mindspace is also home to corporations and larger companies such as Microsoft, Samsung, Yahoo!, Expedia, GoPro, Barclays Bank, Techstars Accelerator, and many more.
The benefits of working in flex offices
Now more than ever, workspaces that allow for a ‘plug-and-play’ model have many advantages: along with simplified operations, companies benefit from the “all-inclusive” model covering property taxes, infrastructure and maintenance costs, office services, cleaning and upholding the “purple seal” standard, as well as access to the Mindspace global customer community.
Given the prevalent uncertainty in the market, companies want to avoid making long-term decisions regarding their office space, which is why flex offices offer the ideal solution for the many companies seeking to return to work from the office.
A new strategy: management agreements
Mindspace is implementing a management agreements’ strategy in collaboration with property owners to operate their buildings. These agreements enable Mindspace to provide an innovative and state-of-the-art service to the building’s occupants while enjoying the profits of such operations, as well as the additional services and amenities in the building.
In the last two years, Mindspace has signed five management agreements with property owners in Israel, Europe and the United States, and in the beginning of 2021 the company plans to expand in both Philadelphia and Berlin.
Mindspace La Guardia
The new La Guardia branch extends over 4,000 sqm and includes 600 workstations on floors 7-9. Office spaces are available in configurations of private offices for large and small companies, and each floor offers shared spaces, full kitchens, meeting rooms, and event spaces. La Guardia is Mindspace’s fifth branch in Israel, joining Rothschild Boulevard and Ahad Ha’am in Tel Aviv, “Hamenofim” in Herzliya and “Habursa” in Ramat Gan, which are part of the 31 Mindspace branches in 16 cities around the world.
The ‘Vitania Tel Aviv Tower’ is located on the La Guardia interchange of Ayalon highway, a six-minute walk from the Hagana train station. The tower is categorized as a ‘green building’ adhering to standards of sustainability, environmental responsibility and efficient resource utilization. Vitania was designed by ‘Yashar Architects’ and – besides its luxurious lobby – offers its tenants a gym, a restaurant, an event hall, bicycle rooms, showers, and more. Among its occupants is the Gornitzky and Co law firm.
Yotam Elroy, Mindspace Co-Founder: “Covid-19 has accelerated processes globally and has made the flex model the ideal choice for the present. On the one hand most companies now express an interest in flexible solutions for shorter periods of time starting from one month – compared to standard contracts lasting 5-10 years, and on the other hand property owners are shifting to management agreements and the introduction of flex office spaces in their buildings. The latter offers them a higher potential in both occupancy and income in times of an economic slowdown. We are proud to collaborate with Vitania, an innovative and high-quality real estate company, with an advanced mindset and a strong awareness of the work environment of the future.”
Ofer Ziv, CEO of Vitania, states that “This project will contribute to the renewal of the entire area. The project will have excellent transport accessibility due to its location on the Ayalon and La Guardia interchange and also in view of the proximity to a planned pedestrian path that will connect it to the Haganah train station. In accordance with contemporary planning trends in Israel and globally, we are currently moving forward with an additional office building and a third tower – next to the existing office building – that is intended for hotels and residences, in order to create a vibrant urban center around the clock.”
Ziv adds that “introducing a mixed-use will allow the complex to generate activity both in the evening and during the busy morning hours, when the residents will not only enjoy the proximity to their work in the area, but also maximum accessibility to the city and the huge planned development in the complex itself. The importance of the project for the aesthetic of Tel Aviv is significant; it offers a real change to the Tel Aviv skyline, for all those coming into the city from the southern entrance. For the tenants, this is an excellent location that prevents entering and leaving the city during rush hour.”
In addition, Ziv refers to the management agreement with Mindspace: “We are happy to cooperate with Mindspace. During these times when the world of work as we know it is changing, offering flex offices is the right thing to do. Mindspace is therefore the natural choice, being a global, established, stable company as well as successful in the Israeli market.”