• Marketplace
  • Resources
  • Business Directory
  • Events
  • Advertise
  • Brand Pulse
  • Publish a Press Release
  • Get the Newsletter
  • Contact
  • About Us
The FUTURE OF WORK® since 2003
Allwork.Space
No Result
View All Result
Subscribe
  • More
    • Columnists
      • Dr. Gleb Tsipursky – The Office Whisperer
      • Nirit Cohen – WorkFutures
      • Angela Howard – Culture Expert
      • Drew Jones – Design & Innovation
      • Jonathan Price – CRE & Flex Expert
    • Get the Newsletter
    • Events
    • Advertise With Us
    • Publish a Press Release
    • Brand PulseNew
    • Partner Portal
  • Latest News
  • Business
  • Leadership
  • Work-life
  • Career Growth
  • Tech
  • Design
  • Workforce
  • Coworking
  • CRE
  • Podcast
  • More
    • Columnists
      • Dr. Gleb Tsipursky – The Office Whisperer
      • Nirit Cohen – WorkFutures
      • Angela Howard – Culture Expert
      • Drew Jones – Design & Innovation
      • Jonathan Price – CRE & Flex Expert
    • Get the Newsletter
    • Events
    • Advertise With Us
    • Publish a Press Release
    • Brand PulseNew
    • Partner Portal
  • Latest News
  • Business
  • Leadership
  • Work-life
  • Career Growth
  • Tech
  • Design
  • Workforce
  • Coworking
  • CRE
  • Podcast
No Result
View All Result
Subscribe
Allwork.Space
No Result
View All Result
Advertisements
Kube Suite - TL
Home Business

Supply Rut or Supply Glut: A Shared Workspace Study

Cecilia Amador de San JosébyCecilia Amador de San José
May 27, 2016
in Business
Reading Time: 3 mins read
A A
graph

JLL, a financial firm that specializes in commercial real estate services and investment management, recently conducted a study on coworking space growth, how coworking will keep growing, and some issues that could arise in the long-run.

A few months ago, we published an article exploring how the gig economy is driving flexible workspace growth. JLL’s study parts from this same premise:

Advertisements
Nexudus - Tech Stack Lovers

“Over the course of this current economic cycle, there has been a significant shift in both the way people work as well as where that work gets done. Paired with a rise in entrepreneurialism and the new sharing economy, shared workspace has emerged in recent years as the perfect answer to small business needs.”

The ‘serviced office’ increased demand has been particularly observed in the rise of coworking spaces, both in the US and globally. The main finding of JLL’s study is that shared workspaces are growing, and they’re doing so at an unprecedented rate.

“Since mid-2014, shared office companies have leased more than 3.7 million square feet in leases of 20,000 square feet and larger, bringing the total size of this industry to more than 27 million square feet.”

Advertisements
Workspaces Run Better On UltraSoftBIS

“928,471 square feet was leased in 2016’s first quarter alone.”

Even better news is the fact that this growth is predicted to continue, at least for the next 3-5 years. “The pipeline of potential customer demand is only expected to increase as small businesses and freelancers continue to require more customizable space.”

“The U.S. Bureau of Labor Statistics estimates that the number of freelancers, temps, independent contractors and solopreneurs will grow from 30 percent of the workforce today to 40 percent of the total workforce over the next five years.”

Yet, the downside to this growth is the uncertainty surrounding the model’s stability through an economic recession.

“The model’s staying power at this scale and with this workforce demographic is untested through a downturn.” Which means that there’s no knowing whether members and operators alike will be able to afford the costs of shared workspaces and their premiums, which could potentially lead to volatility of the industry and the market.

Advertisements
Workspaces Run Better On UltraSoftBIS

Nonetheless, JLL believes that the demand for shared workspaces will continue even if we face another economic recession. “There may be a new supply of customers to be captured as companies shed leased space and wait for an economic downturn to pass.”

But, like with any other industry, JLL concludes that there will be winners and losers both as the industry continues to grow and also whenever it’s turn comes to face a recession. And, according to the study, a determining factor in the success of a shared workspace is the size and the location.

“There are some companies that lease more space than others and with size and scale come certain advantages. A well known brand cultivates a stronger customer base and makes it easier to capture a higher share of demand. Additionally, location remains key. (…)  Over the past two years, 90 percent of leasing activity in this sector has taken place in Class B and C buildings, and two-thirds of leasing activity is within urban and mixed-use submarkets.”

So, what can we deduce from all this?

For one, that demand will continue, but this means more operators, therefore more competition. Workspaces will need to find ways in which to differentiate themselves and scale as the market grows.

More stories for you

How AI Is Creating a Profit Divide Among Coworking Operators

How AI Is Creating A Profit Divide Among Coworking Operators

1 day ago
IWG Partners With SmartLabs To Bring Flexible, Fully Managed Labs To Global R&D Markets

IWG Partners With SmartLabs To Bring Flexible, Fully Managed Labs To Global R&D Markets

3 days ago
Commuter Perks Go Plush As London Offices Add Sleep Suites And Saunas

Commuter Perks Go Plush As London Offices Add Sleep Suites And Saunas

3 days ago
Flexible Workspace Demand In U.S. And Canada Up 19%

Flexible Workspace Demand In U.S. And Canada Up 19%

4 days ago

Secondly, that the volatility of the industry is yet unknown and operators need to keep this in mind when planning their business and growth strategies.

And lastly, independent operators need to create and foster their own brand in a way that will allow them to compete against larger players.  

 

Advertisements
Subscribe to the Future of Work Newsletter
Tags: Coworking
Share5Tweet3Share1
Cecilia Amador de San José

Cecilia Amador de San José

Cecilia is an experienced writer and editor with a background in strategic communications. She has written articles for Allwork.Space on several topics, including the future of work, flexible workspaces, employee wellness., and more.

Other Stories Recommended For You

How AI Is Creating a Profit Divide Among Coworking Operators
Coworking

How AI Is Creating A Profit Divide Among Coworking Operators

byEmma Ascott
1 day ago

AI is driving a profit gap in coworking as data-savvy operators outpace competitors in growth.

Read more
IWG Partners With SmartLabs To Bring Flexible, Fully Managed Labs To Global R&D Markets

IWG Partners With SmartLabs To Bring Flexible, Fully Managed Labs To Global R&D Markets

3 days ago
Commuter Perks Go Plush As London Offices Add Sleep Suites And Saunas

Commuter Perks Go Plush As London Offices Add Sleep Suites And Saunas

3 days ago
Flexible Workspace Demand In U.S. And Canada Up 19%

Flexible Workspace Demand In U.S. And Canada Up 19%

4 days ago
Advertisements
Workspaces Run Better On UltraSoftBIS
Advertisements
Disaster Avoidance Experts

Unlock your competitive edge in tomorrow's workplace.

Join a community of forward-thinking professionals who get exclusive access to the latest news, trends, and innovations that are shaping the future of work.

©2024 Allwork.Space News Corporation. All Rights Reserved.

Exploring the Future Of Work® since 2003.

Advertise   Newsletters   Privacy Policy   Terms Of Use   About Us   Contact   Submit a Press Release   Brand Pulse   Podcast   Events   

No Result
View All Result
  • Home
  • Latest News
  • Topics
    • Business
    • Leadership
    • Work-life
    • Workforce
    • Career Growth
    • Design
    • Tech
    • Coworking
    • Marketing
    • CRE
  • Podcast
  • Events
  • About Us
  • Solutions
    • Advertise | Media Kit
    • Publish a Press Release
    • Brand Pulse
Subscribe

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
-
00:00
00:00

Queue

Update Required Flash plugin
-
00:00
00:00