A NEW flexible office model has been launched in Glasgow following an investment of more than £4 million by veteran property entrepreneur Louis Goodman.

Mr Goodman and Jim McCain have launched a new venture, Graft, which aims to capitalise on the growing demand from start-ups and entrepreneurs for flexible workspace solutions, incorporating opportunities to collaborate and network with other tenants.

It is a trend which has driven the rapid expansion of companies such as WeWork, the New York-based flexible office provider which is poised to open its first building in Scotland.

Mr Goodman is best known as the owner of the now defunct City Site Estates, one of the biggest property companies in Glasgow until it succumbed to the recession and fell into administration in 2012. He is joined in the Graft venture by Mr McCain, his former City Site colleague, who said that the idea has offered the chance to “reinvent themselves”.

They are already planning to roll Graft out to other Scottish cities, with Aberdeen firmly on the radar.

Mr McCain said: “We both saw the move towards more of a flexible approach in terms of what current office tenants require.”

More than £4m has been invested in getting the maiden Graft building, which spans 22,000 sq ft over five storeys, up and running.

The £2m price of acquiring the property has been matched by a similar outlay to refurbish its fabric, while a further £500,000 has been invested to fit out and furnish the interior.

A fintech company is close to completing a deal to lease an entire floor at the building.

Under the Graft model, tenants become members of a business club by picking from a range of leasing options. The rates range from £175 for a single desk for four days per month to £375 for 20 days, in addition to an annual membership fee of £150.

Mr McCain said: “Generally, we think there is a strong market for this model at the moment. British Land have gone into this market as well, [and] CBRE are also looking at doing their own offer in terms of serviced office space.”

Members will in time be able to access other Graft buildings when they come in stream.

However, Mr McCain cautioned: “It is in its infancy. We haven’t done one before, it is a bit of a new concept and venture for us. But we are generally pleased with the feedback so far in terms of the quality of what we are doing, and the concept behind the service level, still with an eye on [the fact] it has got to work fundamentally from a business point of view. You can’t come in and not be able to connect and do your normal work.”

Mr McCain added that future plans could involve adding accommodation, highlighting Mr Goodman’s previous experience of building and operating hotels under the Holiday Inn Express banner.

Asked for his view on current conditions in the city’s commercial property sector, Mr McCain said: “The fact that there are three speculative office schemes on the go at the moment in Glasgow, big schemes, is encouraging for the office market.

“The take-up for bigger space is good; it is the smaller, mid-range that has struggled. I think that Brexit has had an impact in terms of uptake, although since Brexit has been pushed down the line a bit there have been more people [committing to and viewing space] over the last few weeks.”

Mr McCain contrasted the effect on the property market from the referendum on Scottish independence in 2014 with the Brexit debate. He observed that the run up to the 2014 referendum had a more pronounced effect on property investment because of the macroeconomic questions it posed, such as what currency an independent Scotland would pursue.

With Brexit, he said, there has been more impact at the occupier level than on investment deals.