Dr. Gleb Tsipursky – The Office Whisperer
Nirit Cohen – WorkFutures
Angela Howard – Culture Expert
Drew Jones – Design & Innovation
Jonathan Price – CRE & Flex Expert
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- Coworking spaces provide property owners with higher rental yields and opportunities for income diversification, which can lead to increased investment returns and economic resilience.
- By adapting to modern work trends and offering flexible, scalable, and amenity-rich environments, coworking spaces meet the growing demand for hybrid work solutions, enhancing occupancy and property value.
- Coworking spaces foster community and networking, offering a professional environment that can retain tenants and attract new ones, with the added benefit of management expertise from companies like Workspace Strategies.
The commercial real estate landscape is evolving. Property owners and CRE investors are increasingly turning to coworking spaces to capitalize on new opportunities.Â
Here are ten key reasons why so many are entering the shared space industry:
- Higher Rental Yields: Coworking spaces often have higher rental yields compared to traditional office spaces, with properties yielding anywhere from 130% to 165% of market rents. This allows property owners to maximize returns on their investments and generate higher rental income.
- Keeping Up with Evolving Work Trends: The shift towards remote and flexible work arrangements has increased the demand for coworking spaces, with more companies seeking hybrid work solutions for their teams. Offering coworking spaces can make a property more attractive to a greater pool of users.
- Diversification of Income Streams: Coworking offers property owners a way to diversify their income streams, reducing their overall exposure to specific market conditions and risks. This can help stabilize income and reduce the impact of economic downturns.
- Enhanced Value Proposition: Incorporating coworking spaces into a commercial property can enhance the value proposition and attractiveness to users overall, providing additional amenities and services that differentiate them from competitors. This can lead to higher occupancy rates and increased property value.
- Community Building: Coworking spaces create a sense of community among members, which can be attractive to property owners looking to create a more vibrant and engaging environment in their buildings. A strong sense of community can lead to higher tenant retention rates.
- Flexibility and Scalability: Coworking spaces offer flexible lease terms and the ability to easily scale their space as their business grows, appealing to startups and small businesses. This flexibility can attract a diverse range of tenants and adapt to changing market demands.
- Access to Amenities: Coworking spaces provide access to amenities such as high-speed internet, meeting rooms, and communal areas, enhancing the convenience and functionality of the workspace. Offering these amenities can make a property more competitive in the market.
- Networking Opportunities: Coworking spaces facilitate networking and collaboration among members, creating opportunities for business growth and partnerships. Property owners can benefit from networking opportunities themselves and attract tenants seeking a collaborative environment.
- Professional Atmosphere: Coworking spaces provide a professional and productive work environment, conducive to increased productivity and creativity. This can enhance the reputation of a property and attract high-quality tenants for the building as a whole.
- Management Expertise: Partnering with a coworking management company, such as Workspace Strategies, provides property owners with access to expertise in managing coworking spaces, ensuring the success and profitability of the venture. This can help property owners navigate the complexities of operating a coworking space and maximize their return on investment.
In conclusion, the coworking industry offers property owners and commercial real estate investors a way to capitalize on changing work trends, diversify their portfolios, and create value-added spaces that cater to the evolving needs of workspace users today. By embracing coworking, property companies and CRE investors can position themselves for long-term success in a rapidly changing market.
How Workspace Strategies Can Assist in Development and Management
Workspace Strategies specializes in the development and management of coworking spaces, offering comprehensive services to property owners and investors. From initial concept development to day-to-day operations, Workspace Strategies provides the expertise and support needed to create successful coworking ventures. Whether you’re looking to convert an existing property into a coworking space or enhance the performance of an existing coworking business, Workspace Strategies can help you unlock the full potential of your investment.
