While coworking is not new (Regus dates back to 1989), the modern concept originated on the West Coast in the mid-2000s, with a focus on community, collaboration, and interaction.
Traditional offices have recently been superseded by coworking spaces which have proliferated all over the world. Because their core idea is based on the creation of a thriving community and fostering networking, such offices are becoming more and more popular among millennials and, thus profitable for their owners. Not only is it a great choice for small and growing businesses but also the concept of shared spaces is chosen by big corporations. The latter often set up innovation labs within the walls of shared space venues.
How Coworking Influences Commercial Real Estate:
1. Facilities Management
Coworking means sharing. But it does not just stop at sharing the workspace. Costs associated with electricity, security, the Internet, etc. are divided between all of the tenants of a coworking space. This works beneficially for all parties involved.
Compared to renting a regular office, a coworking space offers a cheaper alternative to traditional offices for freelancers and companies. At the same time, business operators overall earn more on facilities management services despite charging a low cost per client.
2. Smart Building Technology
A lot of coworking spaces apply smart technologies when designing and building a venue. A lot of processes are becoming automated from visitor management and heating to cloud access control and cutting-edge security. This makes coworking spaces not only more attractive to professionals but also sustainable and forward-thinking.
3. Brokerage
Coworking space agreements are usually less complicated than traditional ones. They are flexible and allow short-time leasing. There is a possibility to rent a working space even on an hourly basis. This is a definite advantage for fast-growing businesses. As they develop, they make use of the scalability offered by coworking spaces.
Brokers might become less influential in the future, as the relationship between a space provider and a client will be a direct one. Brokerage might shift towards advising, as it is expected that there will be a reduced number of long-term leasing agreements.
4. Understanding of Workplace
A workplace of the future is more than an office. It can offer working space, a communal area, a coffee shop, a kindergarten, and a gym. It is flexible, it is attractive, and it boosts creativity. And that’s what the generation of millennials needs. They are not bound by the 9 to 5 rules. They value money and the freedom it gives, and they cherish when work and leisure can be combined.
5. Project Management
Because coworking venues are pre-furnished, well-maintained and have all the facilities included in the price, companies should not worry about spending a fortune on fit-outs and improvements which they otherwise would have to go through in case of leasing a traditional office.
What will it be in the future?
At present, traditional real estate owners have started to adopt some of the best things about coworking—better employee work experiences, shared resources, a wide range of workplaces, and happy working hours.
While the commercial landlord has already seen many changes, there is still more to come.
More space redevelopment.
With commercial real estate showing no sign of slowing down and with a growing demand for coworking space from the advent of freelancing, coworking, and hybrids, more real estate developers and coworking operators are extending their ventures to secondary and tertiary markets in anticipation of gaining more profit.
About Propques
Our coworking consultancy services include tailor-made programs and strategies to help you get started, optimize your coworking space business, and ensure to thrive. We help you get the most out of your coworking space business, and also provide the necessary information needed to fast-track your vision. Our team helps build effective coworking space pricing models that boost ROIs and open doors to long-term success.
We even assist landlords in making the most out of their under-utilized spaces. Our Space-as-a-Service strategy can help you generate upwards of 3 times the revenue of a standalone space. Our team of experts has a proven track record of creating unique strategies that will help you maximize the opportunity and returns.