The rising trend of businesses opting to hire coworking spaces through the pandemic has had an enormous impact on the real estate industry, opening up all sorts of opportunities for investors and landlords as a result.
This has been a trend for a while, but it’s only recently become more mainstream. When the pandemic first hit in 2020, many organisations began to realise the enormous benefits of this model – as it meant streamlining their costs, while also providing greater flexibility and a better balance for their employees. There are also more start-ups and small businesses emerging, for whom this is a perfect set-up.
It’s a win-win for everybody all-round. Companies no longer have to fork out large sums to afford the upkeep of a building, instead being able to opt for the shorter term lease of shared facilities. And staff now have the choice of having somewhere to go, where they’ll be surrounded by likeminded people they can bounce ideas off and collaborate with. This leads to greater productivity and higher staff morale.
It’s no wonder, then, that this has become one of the fastest growing trends in the commercial real estate industry. As a result, the increased demand and popularity of these shared working areas bringing about all kinds of opportunities for investors to increase their portfolios.
What Does the Rise of Coworking Mean for Real Estate?
This shift away from having to own a building in order to do business creates many more opportunities for property owners. As more companies move into shared offices, the number of available properties will increase dramatically. Companies looking for flexible office space may choose shared facilities over other more traditional models as they offer convenient facilities and amenities, without the typical costs.
Benefits of Adding Coworking Spaces to Your Portfolio
There are several reasons why you might consider adding these shared, flexible facilities to your portfolio. First, coworking offers a unique opportunity to diversify your tenant base. You don’t necessarily know how long any particular company will stay in your building. By providing them with a place to meet and share ideas, you give yourself greater certainty when it comes time to renew leases.
Second, it provides a way to attract younger employees. Millennials tend to value collaboration and community above all else. If you can show them that you support those values, they’ll likely feel comfortable choosing your building over another option.
Finally, it also allows you to tap into a growing market segment. Small businesses and start-ups are often priced out of the marketplace and forced to operate out of cafes or other locations that offer free Wi-Fi. These companies are similar to the humble beginnings of major corporations such as Dell, Apple and Facebook, who all began as small businesses.
The Way of the Future
The real estate industry will continue to thrive and benefit from this trend. Here at Connect Offices, we offer a range of stylish, modern properties for your business – all situated right here in the prime location of Brisbane Technology Park.
With meeting rooms and office space available for up to 200 employees, we’re here to help you take your business to the next level. Get in touch with our friendly, professional team to get started on your journey today.