Back To Daily Digest
Tags: BUSINESS

How does flexible space impact property value?

A recent CBRE report shows an increasing amount of corporate and niche spaces claiming a big portion of the U.S. real estate industry.

The U.S. Property Value Implications of Flexible Space report states, “The niche flexible space segment should continue to mature and expand, potentially boosting its share of Class A office space nationally to as much as 10% by 2028.”

CBRE’s report revealed that most flex transactions had cap rates lower than the national and market averages due to operators locating in active markets and high-quality buildings.

High coworking concentrations also have an impact on property value. About 64% of buildings with over 40% of coworking space had higher cap rates.

The Latest News
Delivered To Your Inbox

Still, there is some risk with incorporating a flex space within buildings. Landlords and investors should be careful and consider their market when deciding how many flex spaces to include in their space.

They should also engage with quality flex space operators in order to increase their income and avoid the risks that come with managing these offices.

Overall, the report summarized that if a building is in a good location and business area, then a moderate amount of flex space will not impact asset values on either end.

Latest on Daily Digest

What can agile working do for your office?

Agile working has transformed the idea of typical office models by allowing more flexibility, fostering creativity, attracting more diverse talent, and boosting morale.
CBRE’s coworking business gives landlords a say

CBRE has launched its new coworking company, Hana, which focuses on entering into partnerships with building owners to maintain a strong relationship with tenants.
Coworking grows further in the West Coast

While many flexible workspace providers have set their focuses on tech-heavy areas of the country, the San Diego and Orange County coworking markets are on the come up.
Convene co-founder takes a step back

Chris Kelly, co-founder and president of Convene, announced he would be taking a step back from his current role and focus on developing the company’s culture and brand.
WeWork is moving into the software business

Coworking operator WeWork recently acquired Euclid, which is a small analytics software company that allows businesses to track how their spaces are being utilized.
Knotel enters the West Coast market

WeWork rival shared office provider Knotel will officially enter the Los Angeles market with its new 12,388 square foot space on Santa Monica Boulevard.
Everyone wants a slice of the coworking life

As flexible office and coworking options continue to expand, many businesses and landlords are taking note of the success of the market and finding ways to benefit from it.
Luxury flex space operator enters Houston market

Firmspace, an Austin-based high-end flex office provider, has announced plans for a new Houston location within the city’s BBVA Compass Plaza office tower in Uptown.
UAE is joining the coworking phenomenon

As the digital age pushes real estate markets towards offering more space-as-a-service options for companies, Dubai is finding its footing in the rapidly growing market.
Healthy work environments no longer a luxury

In the past few years, incorporating health and wellness in the workplace through greenery, air quality and exercise has become priority in attracting young talent.
Savills launches coworking directory in the U.S.

Savills has entered the massive U.S. coworking market with Workthere, its program that allows businesses and clients to find the perfect workspace to suit their work.
Providing secondary cities with high-end coworking

Serendipity Labs offers high-end, upscale workplaces to underserved secondary markets and suburban areas, places that are barely untouched by major coworking operators.
Ad

FOLLOW US

  • Facebook
  • Twitter
  • LinkedIn
  • RSS
  • instagram
  • pinterest
Ad