Miami’s office market continues to be dependent on coworking firms to fill their spaces, but some landlords are concerned that their absorption rate is becoming too much.
Secondary markets value more personal coworking options
Although coworking spaces have been concentrating on catering to major U.S. markets, smaller coworking providers are taking advantage of demand in secondary cities.
“It’s a practical matter,” said John Arenas, Serendipity Labs CEO and Chairman. “It’s very hard to transfer some brands outside of big city centers.”
Serendipity Labs has locations in Chicago, Los Angeles and New York City, but the company also has over 100 locations in development that are aimed towards suburban and secondary markets.
Urban Land Institute’s 2019 Emerging Trends in Real Estate report showed investor confidence in suburban markets, which makes sense since the U.S. Census Bureau revealed that 2.6 million people moved away from city centers to suburbs in 2016 and 2017.
The Latest News
Delivered To Your Inbox
Still, Arenas predicts that some venture capitalists and investors will keep bigger brands primarily in major U.S. markets.
While major operators such as WeWork rely heavily on these major U.S. markets, companies in secondary cities value personal touches over massive market share in the long run.
“Simply by being a smaller company, we’re able to focus on customer experience from start to finish,” said Bobby Murphy, Head of Business Development at Boston-based Workbar. “Someday, maybe we’ll have to cross that bridge. But for the foreseeable future, we’re going to focus on an individual-location basis to the point where we’ll know every member’s name when they walk in the door.”
Latest on Daily Digest
Gym-coworking hybrids have gained traction recently, allowing members to be productive at work while encouraging them to take care of their physical and mental health.
The 2019 Global Coworking Survey has revealed that there is to be 2.2 million coworking members by the end of this year and identified the state of the industry so far.
Office Depot has been testing out coworking spaces within three of their existing locations in an effort to expand its current services and drive traffic into stores.
Just ahead of its IPO, WeWork has signed four new Manhattan leases to open its “Headquarters by WeWork” offering dedicated to providing un-branded spaces for clients.
Despite the coworking industry seeming congested, operators are not concerned about the competition as each coworking space gears its services to a specific audience.
Flexibility in the workplace has become a common option for workers, but some firms are going further by becoming 100% remote so staff can work from wherever they please.
Coworking firms, such as WeWork and Knotel, have been rapidly expanding their footprint in New York’s Flatiron District as it becomes the city’s hub for shared offices.
British brand Established & Sons have introduced four new furniture designs that aim to create a more comfortable workplace, while also being functional to homes.
Condeco’s newest research paper found that 41% of employers offer remote working, thanks largely in part to major technological advancements that are sweeping workplaces.
Industrious is partnering up with national retail and mixed-use developer Seritage Growth Properties to brings its coworking spaces into five of the retailers locations.
Companies have accepted that wellness in the workplace should be prioritized, but the trendiness of it can overshadow what is most effective — starting from the basics.