HOK’s WorkPlace practice, in partnership with the UK Chapter of CoreNet Global, has released a new report that studies the impact of coworking from a corporate real estate (CRE) perspective.
Coworking is one of the fastest-growing sectors of the commercial real estate market. The new report, Coworking: A Corporate Real Estate Perspective, examines the drivers of coworking from the demand and supply sides, the industry risks and implications for corporate real estate, as well as information about the owners, coworkers and centers.
The HOK/CoreNet Global Coworking report highlights the ideas that changing business priorities and the need to attract talented people, reduce real estate costs, improve speed to innovation and increase productivity are driving corporations to consider different workplace models, including on- and off-site coworking.
Key findings from the Coworking report also include:
- The coworking concept is evolving to comprise accelerators, incubators and maker spaces. It reaches beyond office settings to include college campuses, retail locations, hotels and libraries.
- The impact of coworking spaces on CRE includes providing new uses for older properties and for underutilized spaces in existing facilities.
- The lowest engagement levels are found in employees who never work remotely. The highest employee engagement levels occur among those who work remotely less than 20% of the time.
- Many coworking centers emerged in a time of high unemployment and low rents. But 54% of the coworkers will leave a specific location in less than a year. The high turnover and tenant instability challenge coworking centers to maintain profitability. They are vulnerable to market conditions and new competitors.
“For corporate occupiers and other real estate professionals, the coworking trend is worth watching, exploring and testing,” said Curtis Knapp, director of consulting for HOK. “It is a way to add flexibility to the portfolio and help match the ebb and flow of supply and demand. It can be one solution to the many challenges posed by the changing nature of both work and worker.”
Related Stories
Big Data | May 5, 2016
The Center for Neighborhood Technology has launched the largest source of transit data in the country
AllTransit analyzes the social benefits of good transit service by analyzing data related to health, equity, and economic development.
Industry Research | May 5, 2016
National survey reveals offices aren’t built to benefit employees
A Saint-Gobain and SageGlass Work Environment Survey found insufficient access to daylight, poor air quality, and distracting noise at workplaces as the major issues experienced by employees
Industry Research | Apr 15, 2016
Commercial construction starts jumped 18% in March
Nonresidential construction has gotten off to a hot start this year and looks to gain even more momentum throughout the spring.
Industry Research | Apr 14, 2016
Contractor confidence down, but not out
Despite a slight regression, nonresidential construction confidence is still in positive territory
Industry Research | Apr 7, 2016
CBRE provides latest insight into healthcare real estate investors’ strategies
Survey respondents are targeting smaller acquisitions, at a time when market cap rates are narrowing for different product types.
Industry Research | Apr 4, 2016
AIA: Public-private partnerships could solve nation’s public infrastructure crisis
A new white paper addresses the nation’s $3 trillion public infrastructure crisis and how public private partnerships offer a possible solution.
Retail Centers | Mar 16, 2016
Food and technology will help tomorrow’s malls survive, says CallisonRTKL
CallisonRTKL foresees future retail centers as hubs with live/work/play components.
Architects | Mar 11, 2016
AIA survey finds many women and minority architects still feeling underrepresented and unfulfilled
Dissatisfaction with “work-life balance” and compensation are cited as reasons why companies’ diversity strategies may be faltering.
Office Buildings | Feb 26, 2016
Benching, desking, and (mostly) paper-free: Report identifies top trends in workplace design for 2016
The report, from Ted Moudis Associates, encompasses over 2.5 million sf of workspace built over the past two years.
Multifamily Housing | Feb 24, 2016
Senior housing sector experiences record-setting year, says CBRE
Senior housing occupancy is at its highest level since 2007, and 2015 was a record year for sales and institutional transactions, according to CBRE.