Coworking today has redefined the commercial real estate industry. This concept was born as a means to tackle rising real estate costs and has now managed to change the entire landscape of the industry. Coworking was initially associated more with freelancers, entrepreneurs’, bloggers and so on. Basically, the less traditional workforce. However, recent studies have shown a gradual shift in the favor of coworking spaces when it comes to larger enterprises such as Microsoft, Facebook, Uber etc. as well. There are multiple factors that have contributed to this shift. Without further ado let’s explore this and attempt to identify the industry gaps and opportunities that drive this change.
- Cost Management.
Coworking spaces offer an innovative way for organizations to manage their setting up costs. The initial investment that goes into setting up any new workspace is humongous. Even the most basic no frills office would require basic furniture, painting costs, electrical fixtures and more. Today however, having impressive interiors has been seen to improve retention and engagement within the workforce.
Going simple just can’t make the cut anymore. This is where coworking spaces come into play. They offer ready to move-in offices with a focus on design and aesthetics. Coworking spaces are an offshoot of the hospitality industry and they bring the advantage of offering auxiliary services such as cafés, housekeeping and client servicing, so even after you move-in, you can outsource the facility administration giving you ample time to focus on your bottom line. This makes this concept more appealing to larger organizations.
- Employee engagement.
The new age workforce is way more demanding about the quality of their workspace. The millennial and gen Z working class are known to be nomadic and versatile which is reflected in the ever-increasing attrition rate.
Organizations all over are acknowledging this as a cause of concern and are constantly finding solutions to curb and retain talent that they have invested in. This is where coworking spaces come in. They offer vibrant and artsy environments which are made to impress hence adding to the employee experience. The ambience and aesthetics are carefully chosen to appeal to the younger crowd and drive engagement. Common areas and gaming areas have been incorporated as a platform for informal interactions or a simple refresher.
Opportunities can pop up anywhere, and organization must react just as quickly as they present. If expansion is on the cards, coworking reduces the risks associated quite substantially. With flexible renting options, they can experiment with new geographic locations and markets sans the investment (real estate expense). Not being bound by long-term lease agreements also makes it easier to exit that market and minimizes financial loss.
The borders that separate various industries are becoming increasingly blurred. Having a collaborative environment invites constructive discussions which can in turn lead to exciting new business opportunities as well as innovative solutions. Being isolated and one dimensional in your business approach can be quite detrimental to growth today as we cater to such a diverse and inclusive environment. Fostering a collaborative community has hence become even more important. Coworking spaces are in fact the breeding ground of such diverse collaborations.
Coworking spaces are rapidly becoming the preferred choice amongst business big or small. As they can suit the requirements of both, the market they cater to is also quite expansive it has also been predicted that by 2030, an impressive chunk of the commercial sector would operate from coworking spaces. All the signs point to the fact that this trend is in fact here to stay and will continue to reshare the landscape of the commercial real estate industry.