For many years, shared workplaces have been the go-to option for individuals seeking an affordable place to work but looking for an alternative to working from home or sitting in a coffee shop. Now, as lease prices continue to rise and economies across the globe become less predictable, more and more large corporations are considering the non-traditional office setup for their own businesses.
CBRE’s recent report, “The Rise of the Shared Workplace in the Sharing Economy,” reveals that 14% of corporate real estate executives and 20% of corporate tenants are currently using or considering shared workplace offices. As companies like WeWork, Assemble, and Grind continue to expand to different cities and countries, the popularity of coworking spaces is likely to grow in the future. Here are four megatrends that will drive that growth.
1. Economic uncertainty
As global markets rapidly change, technology advances, and business models evolve, many businesses are becoming more unsure about the future. Long-term leases allow for little flexibility and agility for companies looking to survive. Shared workplaces, however, offer many businesses incredible flexibility by allowing them to expand in a strong economy and downsize when times get tough, without being tied to a long and expensive lease.
2. Advances in technology
Mobile devices and cloud technology have made it easier for employees across industries to work whenever, wherever, and however they want. In the future, this increased mobility will make workplace flexibility that much more of a priority for companies and employees. In fact, 18% of respondents to CBRE’s 2016 Americas Occupier Survey say flexible working arrangements are most important to them.
3. Reimagined urban spaces
For decades, New York, San Francisco, Los Angeles, Boston, and Chicago have been leading cities for innovation and entrepreneurship. Though technology and creative firms boast great downtown locations in these cities, they often come with a hefty price tag. Fortunately, many shared workplaces are revitalizing old buildings in these areas. The open floor plans of these older buildings have been great for promoting collaborative workspaces, and the hip neighborhoods are attracting a variety of workers and industries.
4. Community at the core
As millennials make their way up the professional ladder, priorities and work styles will shift dramatically. The generation raised on social media and technology has shown a strong interest in community and will no doubt demand workplaces that reflect this. Many coworking spaces are are built on the idea that collaboration and community lead to innovation and a more meaningful environment. It’s no wonder 61% of respondents in CBRE’s report said they joined a shared coworking space to get away from the isolation and distraction found working from home.
Startups and entrepreneurs have long known about the financial and strategic possibilities of coworking spaces. As global markets continue to change and the traditional workspace evolves, we can expect corporations to look to these possibilities in the future as well.
Find out more about the trends driving shared workspaces in CBRE’s “The Rise of the Shared Workplace in the Sharing Economy” report.
Credits Business Insider