Your guide to Co-Working spaces
In the past few years, the number of start-ups has increased exponentially, making their mark globally. With the increase in popularity of concepts such as remote work culture, productivity, and gig economy, the real estate industry is growing at a very fast pace both in terms of financial power, and the possibilities and potential that the industry carries on itself.
The co-working space, which was earlier a concept exclusive to only young start-up founders and freelancers, has grown significantly as an industry in the past decade. Co-working is a work style that comprises a shared working space. In contrast to a typical office environment, those who work in a co-working space are usually not employed by a single company.
Technology and Demographic Shift
The combination of the demographic shift and technology has altered the traditional concept of work, and employees are no longer bound to the traditional nine-to-five workday. This aspect of flexibility has completely changed the way people utilise, design, and occupy office space. This is exactly where the co-working industry has made its impact.
Impact of Co-working Space On Real Estate
Co-working has had a huge impact on the utilisation and performance of commercial real estate. From a performance point of view, the co-working operators have been responsible for a large amount of constructive net absorption in prime metropolitan markets. This is quite understandable since this nascent industry hardly existed ten years ago. The co-working sector has also given rise to a disproportionate number of “new” companies that take space in the same general vicinity or building as the incubator they came from.
Who Uses Co-working Spaces
With more than 40,000 flexible workspaces across the globe, the big question is – who is using these co-working spaces?
Remote Workers and Freelancers: Remote workers and freelancers love co-working spaces as they are cheap, and the fact that you get to work with others can help beat their isolation blues.
SMBs and Start-ups: Co-working spaces do not come with the high commitments and costs linked with the usual office leases.
Enterprises: Most of these big companies have employees across the globe, and physically setting up and maintaining offices is an effort they want to avoid.
Benefits of Co-working Spaces
Cost: Instead of renting an entire office space for your company or yourself, you can choose shared workspaces instead. The property value of individual spaces is much more, leading to more rent.
Convenience: Another main advantage of the co-working model is that it is very convenient. You pay exactly for how long you need the space for.
Culture: Another incredible thing about co-working spaces is their vibe and culture.
Things to Consider When Choosing a Co-working Space
How do you select the right co-working space, especially with such an abundance of these available?
Location: As a tenant, we recommend selecting a co-working space that is not very far from where you live to save travel costs. Also, ensure that your co-working space has parking spaces near public transit to help commute.
Amenities: Ensure that your co-working space has amenities, such as dedicated meeting rooms, cappuccino machines, and phone booths – things that are essential to ensure smooth working for employees.
Costs: There are different rates for different co-working spaces. Do select one that fits your budget as a tenant.
Community: Look for a co-working space with like-minded individuals with whom you can get along
How can Indiassetz Help?
Indiassetz can help connect you with the right space for a co-working environment. Our experts have extensive experience with any kind of real estate transactions, such as property management, rentals, and financial assistance, thus providing an excellent experience to our customers.
The Future of Real Estate – A Co-working World?
So, what is in store for the future? Traditional users of real estate have already begun to adopt some of the unsurpassed attributes of co-working, such as improved employee work experiences, common resources, diversity of working areas, and happy hours. Co-working operators are, in fact, the most desirable tenants in the market today, with valuations exceeding those of their traditional landlords.
While the commercial landlord has already experienced much change, there is more to come:
Joint Ventures: With the profitability and success of various co-working operators, the market may begin to see joint ventures between operators and landlords.
Continued Redevelopment: As the creative office trend grows, outdated office and industrial buildings need to be redeveloped to be attractive for co-working operators.
Short-term Leases: For a small or medium tenant, the typical term of a lease is much more likely to trend shorter as flexible co-working spaces become an alternative to traditional office setups.