Cost Savings Are The Top Reason For Coworking Adoption

Leaders are reevaluating their office space needs both in the context of preparing for an incoming recession and meeting the demands of employees.

Flexible office operators are enjoying their time in the limelight as corporations reconcile with their expensive office presence.

As these companies shift to more distributed operations, leaders are reevaluating their office space needs both in the context of preparing for an incoming recession and meeting the demands of employees.

According to a survey conducted by Yardi, 39% of occupiers are interested in or currently using coworking spaces. Considering just a few years ago coworking spaces made up just 2% of total U.S. office stock, the rise in demand is noteworthy.

Respondents of the survey said that the top reasons for adopting a flexible workspace were:

Cost savings (24%)
Flexibility in real estate takeup (17%)
Short-term lease preference (10%)
Shifting to a hybrid work model (8%)
Accessing a larger talent pool (7%)

“Turnkey offices, with everything corporate occupiers need for a properly functioning space, have long been the traditional solution and while this is still the preferred option, flexibility is key,” said Brian Sutherland, vice president of sales at Yardi. “Coworking provides the best of both worlds.”

While much of the reasoning for flexible office adoption comes from the need to decrease expenses and overall office footprint, 56% of respondents stated that their office space requirements would not change in the next three years. Rather, offices are finding new purposes.

This is despite the fact that 47% of survey respondents said they would see employees coming into the office two days a week at the most, while many won’t require a full-time office attendance at all.