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
Contractors | Apr 19, 2023
Rising labor, material prices cost subcontractors $97 billion in unplanned expenses
Subcontractors continue to bear the brunt of rising input costs for materials and labor, according to a survey of nearly 900 commercial construction professionals.
Data Centers | Apr 14, 2023
JLL's data center outlook: Cloud computing, AI driving exponential growth for data center industry
According to JLL’s new Global Data Center Outlook, the mass adoption of cloud computing and artificial intelligence (AI) is driving exponential growth for the data center industry, with hyperscale and edge computing leading investor demand.
Market Data | Apr 11, 2023
Construction crane count reaches all-time high in Q1 2023
Toronto, Seattle, Los Angeles, and Denver top the list of U.S/Canadian cities with the greatest number of fixed cranes on construction sites, according to Rider Levett Bucknall's RLB Crane Index for North America for Q1 2023.
Market Data | Apr 6, 2023
JLL’s 2023 Construction Outlook foresees growth tempered by cost increases
The easing of supply chain snags for some product categories, and the dispensing with global COVID measures, have returned the North American construction sector to a sense of normal. However, that return is proving to be complicated, with the construction industry remaining exceptionally busy at a time when labor and materials cost inflation continues to put pricing pressure on projects, leading to caution in anticipation of a possible downturn. That’s the prognosis of JLL’s just-released 2023 U.S. and Canada Construction Outlook.
Multifamily Housing | Apr 4, 2023
Acing your multifamily housing amenities for the modern renter
Eighty-seven percent of residents consider amenities when signing or renewing a lease. Here are three essential amenity areas to focus on, according to market research and trends.
Sustainability | Apr 4, 2023
NIBS report: Decarbonizing the U.S. building sector will require massive, coordinated effort
Decarbonizing the building sector will require a massive, strategic, and coordinated effort by the public and private sectors, according to a report by the National Institute of Building Sciences (NIBS).
Multifamily Housing | Mar 24, 2023
Average size of new apartments dropped sharply in 2022
The average size of new apartments in 2022 dropped sharply in 2022, as tracked by RentCafe. Across the U.S., the average new apartment size was 887 sf, down 30 sf from 2021, which was the largest year-over-year decrease.
Multifamily Housing | Mar 14, 2023
Multifamily housing rent rates remain flat in February 2023
Multifamily housing asking rents remained the same for a second straight month in February 2023, at a national average rate of $1,702, according to the new National Multifamily Report from Yardi Matrix. As the economy continues to adjust in the post-pandemic period, year-over-year growth continued its ongoing decline.
AEC Tech | Mar 14, 2023
Skanska tests robots to keep construction sites clean
What if we could increase consistency and efficiency with housekeeping by automating this process with a robot? Introducing: Spot.
Industry Research | Mar 9, 2023
Construction labor gap worsens amid more funding for new infrastructure, commercial projects
The U.S. construction industry needs to attract an estimated 546,000 additional workers on top of the normal pace of hiring in 2023 to meet demand for labor, according to a model developed by Associated Builders and Contractors. The construction industry averaged more than 390,000 job openings per month in 2022.
