Three Key Trends in The Coworking Industry
Co-working has continued to grow drastically over the past five years and it’s becoming an enormously popular way to work. Many freelancers and entrepreneurs are beginning to utilize these spaces as their main offices for working. Over 70 corking spaces between 2006 and 2009 have opened in major urban centers and in 2017 the number of co-working spaces has reached over 14,000 worldwide. Even though we know that co-working spaces are increasing, what you also be interested to know are the other ways that the increase in co-working spaces is impacting industries worldwide.
Coworking Has Improved Conditions for Commercial Real Estate
The demand for commercial real estate is at an all-time high and the recovery forecast in commercial real estate is set to improve over the next five years with co-working space continuing to drive industry growth. Operators and real estate agents are expected to improve their performance as a result of many companies utilizing commercial real estate agents to find proper co-working spaces. Landlords are adjusting the way that they see potential office spaces and opting for a working policy can often be beneficial for maximizing profits.
The Economics of Leasing
The average price per square feet for commercial real estate is $139 per square foot compared to class a co-working value in a central business district being valued at around $49.59. With average rental rates for office space only rising, co-working spaces are a much more economical choice.
Co-working Spaces Are Getting Larger and More Versatile
Most large working spaces in 2011 rarely exceeded 20,000 ft.². Many of the world’s top co-working spaces today now expand over 100,000 ft.². This can give startups access to the extra space that they need as well as the chance to create temporary leasing arrangements for expansion.
These are just a few of the main trends that are occurring in the co-working industry currently. As the prevalence of these spaces continues to increase it could be just a matter of time before we continue to see more impacts in the commercial real estate market.
This post was written by Tara Kintz. Tara is a director at Signature Workspace which is a Tampa office space. Signature Workspace, owned and operated by Cantor Fund Management, offers services and amenities such as private offices, flex space, co-working space, virtual offices, meeting/conference rooms, and more.