Office provider LABS has launched its 96,100 square foot flagship property LABS House in Bloomsbury, London that features coworking, offices, and full-service dining.
How can co-living benefit real estate developers?
Over the past few years, co-living buildings have taken older buildings and rejuvenated neighborhoods all over the world.
Co-living spaces mimic the model of coworking offices by relying on a shared economy. People have individual bedrooms, but share a kitchen and communal spaces.
Companies such as WeWork have created these cheaper living alternatives in major cities that have rising real estate prices. There are numerous advantages for both residents and real estate developers in this upcoming market.
By converting low-density units into high-density ones, companies can make efficient use of space while creating a market for people who value location, services and community over actual apartment space and privacy.
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Renovating such spaces also allows for a larger occupancy within buildings at a lower cost, which is ideal in cities with high construction costs.
Using a team to redesign a space that offers short-term, long-term and communal living can also boost overall rental income without having to expand the building itself.
Many companies find that providing these living arrangements in workable cities like New York and London to be ideal, but others see them as a fad rather than a sustainable business.
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Cool office interiors are ideal at first glance, but looking into a company’s principles, such as gender equality and flexibility, will be the factors that retain talent.
Colliers International revealed the success of the office market last year due to high demand for coworking and tech firms, but predictions for 2019 are uncertain.
Shared office space providers as tenants have become the norm for many landlords and building owners, and now many REITs have adopted coworking as it continues to expand.
Brookfield Properties has teamed up with Convene to spruce up the 73,000 square foot Brookfield Place into a full-service events venue that accommodates up to 500 people.
Many coworking operators pride themselves on massive, rampant expansion, but some industry experts believe this growth could lead to failure and consolidation in 2019.
Coworking has expanded into many major markets of the nation over the past few years, but some firms are finding their client base to be working moms in the suburbs.
Howard Hughes, the development team behind Chicago’s Bank of America Tower, announced that luxury coworking brand No18 will take up two floors in the 55-story building.
WeWork has officially become one of Seattle’s largest office space occupiers, along with Amazon and Microsoft, and has a total footprint of about 1.7 million square feet.