The commercial real estate has gradually shifted with the emergence of what is known as “co-working” spaces. Co-working space has been a growing popular choice among anyone who values high work flexibility. A large number of people has opted out using conventional office buildings, and instead shifted to co-working.
The existence of co-working spaces have tremendously helped those who have yet an office to call their own, as well as people who opt out to not work at the traditional form of office. That is not to say co-working spaces are threatening the conventional office market. It clearly would still be around and stay for a long time. But with millennials gradually taking over the workforce, it is imperative that the commercial – office real estate industry adapt.
Co-working spaces has been popular with certain groups of professionals that it actually catered to a niche of sorts. These spaces have been crucial to freelance professionals and even startup businesses. The role of technology is what largely drove this seemingly new way of working. The ability to hold meetings remotely, and even the growing flexible employment form through hiring freelance workers or outsourcing, co-working spaces have grown to be a big deal. Companies, especially new ones held by the younger generations, are looking for more innovative ways to cut costs. The financial commitment for office real estate is one of the biggest hurdles and a lot of them seem to be happy to improvise. Startup companies have been able to cut costs associated with space through the utilization of co-working spaces.
The image of co-working spaces, just like co-living spaces, might seem very “millennial”. The concept does seem relatively new, but one thing for certain, it’s not a mere trend and it’s here to stay. With millennials growing to be the generation that dominate the workforce, their values and their behaviors are going to affect the work industry, and consequently, the real estate industry as well.
The amount of cowering spaces has grown considerably over the past years. This is not just apparent in the Western world, but worldwide. The growth in co-working space is indicated by the growing number of co-working space membership numbers. Co-working spaces also grow in scale, not just in number. It’s apparent through the statistics that one in five co-working spaces has grown in membership, reaching over 150 in 2017, and steadily growing still. Occupancy rate has also remain stable in 2017, with approximately 60%. Co-working space is also expecting more members, as well as more events held. This results in a growing sense of community among those who share co-working space, and also attract new members.
It’s also noteworthy that co-working space is known to open other opportunities as well. It’s an excellent place to open cafes and restaurants, or to partner up with said businesses. With co-working spaces going mainstream and even more widely used, it’s a market that should be on the lookout for. Investment are likely to bear fruits as the younger generations seem to love their co-working spaces.