News from JGRE

Volume 10 | Fall 2017

Trend Report:   continued

The GWA is releasing results from their 2017 Industry Financial Survey, which is sent to hundreds of shared workspace operators. Here are a few of the key takeaways:

 

1. Private Businesses and Landlords are getting into the flexible workspace game.

This year we’re seeing flexible options from landlords and private businesses grow faster than anyone expected. According to a recent Liquidspace report, 36% of the transactions on their platform are through private businesses or landlords offering extra space directly to consumers. Jamie Russo, Executive Director of the GWA, says, “The Commercial Real Estate industry may not have historically described itself as ‘nimble and innovative,’ but that may just be the behavior that we’re starting to see. This growth in transactions from landlords suggests demand for coworking, particularly from corporations, is growing. Landlords are increasingly seeking creative relationships with shared workspace operators in order to effectively activate their flexible offerings.”

 

The predominant approach is still the operator leasing the space, with 72% of respondents following that model. 19% of the respondents own their space, 3% reported a joint venture between the operator and the landlord, and 1% reported a management contract between the operator and the building owner. GWA research anticipates seeing less leasing and more operator/owner relationships in the next five years.

 

2. There is an increasing focus on the user experience.

Two of the hottest buzzwords in the workspace industry right now are “consumerization” and “user-centered.” Everyone from landlords to corporate real estate departments to temperature control start-ups are focused on serving the “HDTV” consumer that expects a high level of design and hospitality at the corporate office, what the industry calls their “third space.”

 

3. Open plan ≠ Coworking. Users are looking for productivity, not just a place to network.

Today 80% of coworking spaces offer private offices. While private spaces for individuals or teams make startup-costs higher for the operator, the demand seems to be growing for them.

 

Russo explains, “There is a big myth that coworking means open workspace. When the industry started to emerge in 2006, layouts were primarily open space and the hosts were focused around the simple idea of bringing people together to work. That approach worked for a period of time, but today the makeup of users and their space requirements is evolving.”

 

No longer are programmers and freelance designers the core membership. The GWA data shows that makeup of audiences today is 20% freelancers, 47% small business, and 12% mobile corporate users.

Freelancers are the individuals that are mostly doing computer work, so when coworking started it was focused there and open plan made sense. However, the demand for flexible office space is increasing through the sharing economy and is creating a shift in demand as corporate and small businesses users are on the rise. As the makeup of users shifts, the needs for layout in coworking spaces shifts, too. GWA data shows us the importance of variety in spaces in order to create the environment that makes coworking communities thrive. In fact, today’s data tells us that conference rooms and private offices are the most frequently offered spaces across all flexible workplace types. The supply side is reacting to that demand and creating more private spaces.

 Data from members of shared workspaces indicates that the number two reason that people use shared workspaces is productivity. Some may lump networking under the productivity umbrellas (i.e. productively chasing new business under one roof), but it more likely means getting work done. For many, getting focused work done is simply easier to do in an area with four walls where you can control the stimuli (chatter, people walking by, Skype calls, etc.) Still, productivity looks different for different audiences, and that is changing the face of these spaces.

 

Sourced and adapted from: http://www.huffingtonpost.com/entry/coworking-grows-in-2017_us_59764201e4b0940189700bc6

            

 

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