How the ‘hub and spoke’ approach will change the way we think about commercial real estate.

The moratorium may have been extended to the end of December, but businesses still need to plan for the future direction of their workplace. Workplaces will never be the same. People’s expectations have changed in terms of what they want and need from an office and this will significantly impact future property decisions.

The “Hub and Spoke” is an approach that we have helped clients implement as they face growth, downsizing or other major changes within their organisation. When executed correctly, the Hub and Spoke method can improve business’s bottom line while boosting productivity, performance and wellbeing among staff. 

What Is The Hub And Spoke Approach?

A ‘Hub and Spoke’ approach is where the central office is home to managers and decision makers, while smaller spokes or “satellite” offices offer service delivery and connect back into the hub when needed. Staff are spread out through these spokes according to their location and role, allowing for greater flexibility. Spokes don’t need to take the form of traditional offices. They can be home-based workplaces, external meetings, cafes or even co-working spaces. The hub is generally in a central location and acts as a cultural centre for the business, so connection and collaboration still exists. 


Key Benefits Of This Model Include:

• Efficiency – one office used by everyone all the time can greatly affect service delivery. This is often due to its location. By creating satellite offices, staff can be closer to home and clients which would reduce travel time. 
• Flexibility – More people have become accustomed to working from home and while flexibility was once reserved for workers of “forward thinking” companies, it will now be a standard offering. The Hub and Spoke model allows for greater flexibility through creating flexible spaces that serve the needs of the employees.
• Better Use Of Space – Transforming business headquarters into a hub would make excellent use of the large office space, including its breakout spaces and large meeting rooms, while smaller spoke locations can accommodate specific projects or smaller teams 

Case Study
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OzChild is one of Australia’s leading child welfare organisations. In 2016 OzChild engaged BRM to assist in implementing an accommodation strategy that would address the organisation’s expansion. We introduced the “Hub and Spoke” approach which would condense OzChild’s footprint, by reducing and centralising the hubs, rather than increasing the number of main offices. While the large size of the 2 hubs allowed for future growth and would act as a key location for team support and development, the spokes allowed for an agile working approach. Individuals could work from home, cafes or other locations and would be in closer proximity to their clients. Meanwhile the hub’s space was used more efficiently for training rooms, interview and meeting rooms. 

One of the two main office hubs for OzChild in Victoria, designed by BRM

How Will It Change Commercial Real Estate?

COVID19 has pushed many companies into re-thinking their property strategy and the needs of their people. While the Hub and Spoke method has been around for years, the 
pandemic will see more tenants adopt it when their current lease expires. The implications for landlords could be significant.

Hub and Spoke is all about flexibility. With more flexible options, tenants will no longer need massive office spaces. Instead they can pick up spokes according to the changing needs of their business. This will result in a shift away from long term leases as tenants seek out flexible terms. 

Offices are not dead. But traditional office spaces cannot remain the same. While working from home is not a sustainable long term model for many businesses, the Hub and Spoke approach is an effective balance between the need for an office and the needs of workers. 

For more information on the Hub and Spoke approach or if you need commercial property, design or workplace advice specific to your situation, please contact our team of experts at BRM