Kansas City employment is nearing cyclical lows of 3.5% and the competition to retain talent is fierce. This is leading companies to find new ways to use their real estate to attract and retain top talent.
Many companies are using new workplace strategies to provide premium space for workers, but this comes with a hefty price. Research from Cushman & Wakefield found that the weighted average asking rate for Class A space was $25.06 per square feet and even higher in other areas of the city.
However, the growth of coworking spaces in Kansas City is an indication of what is to come. A November report from Cushman & Wakefield found that corporate occupiers expect 25% of their workforce to use coworking space by 2023.
While many have a perception of coworking is what is driving higher per-square-foot costs, in reality it is the flexible terms of tenant commitment.
Moving forward, offices will start implementing more data collection in order to observe how their spaces are being used. This will help increase space efficiency, improve building maintenance and more.