JLL’s Emerging Trends Report has revealed that coworking providers in seven major markets has tripled over the course of one year. So what exactly caused such a boom in this fairly new commercial real estate sector?
Demand for coworking space has grown tremendously and supply has increased along with it. With this, the coworking industry has allowed for more agility in the office real estate sector, allowing companies to upgrade or downsize as needed.
Not only are startups and entrepreneurs taking advantage of flexible spaces, but many enterprises are also taking note of their benefits which has led to a spike in demand as well.
Businesses also use coworking spaces to be more cost efficient thanks to flexible lease terms and lower deposits. In fact, a CBRE survey found that 45% of companies choose coworking options specifically for the cost reduction.
Designs of office spaces can now make or break a company. Having a coworking space equipped with a vibrant, wellness-oriented atmosphere and fully-equipped amenities no doubt plays a role in attracting and retaining members.
Lastly and arguably one of the most important reasons that coworking spaces are thriving is due to landlords and developers who have taken them to the next level.
“Good coworking spaces look after the place by providing good maintenance to the property and that improves its longevity,” said Robin Chhabra, founder and CEO of Dextrus. “Respected brands bring with them their name, marketing prowess and that brings eyes to the property and increases property values.”