3 reasons tenants prefer coworking over traditional CRE
Coworking spaces have taken the commercial real estate market by storm. In 2005, only 3 coworking spaces existed, today there are over 18,900 coworking spaces worldwide. The concept has taken off and persuaded many landlords of traditional office space to rethink their strategies.
With shorter leases and a host of premium services, these trendily designed spaces are often equipped to offer drinks on tap, yoga, nap/wellness rooms, sit-to-stand desks, you name it! Creative thinking and an open mind has not only convinced start-up companies to rent spaces, but also big players from across the world.
Now very much a mainstream market, coworking continues to attract more and more people, and growth doesn’t appear to be slowing down anytime soon, with the number of coworking spaces expected to grow 16% annually through to 2022.
It’s clear, coworking spaces are tapping into something that is resonating with the workforce, so what are these spaces doing differently that is so effective?
Here’s what they offer:
Sense of community.
Coworking spaces go to great lengths to form a community for their tenants. A unique aesthetic design, activities, discounts and a variety of amenities all help contribute to an atmosphere that stimulates people. Social and networking events play a central role and include anything from guest speaker events, after work drinks or five-a-side football. Attending events and working in communal spaces allow people to socialise and interact with other like minded individuals, increasing the likelihood of forming new connections and business partnerships. For this reason alone, many people flock to work in these spaces as opposed to working from home or in a traditional office space.
A greater emphasis is placed on work-life balance. Most coworking spaces advocate a wellness component, since people often associate the traditional office space with stress. Some locations will offer gyms and personal trainers, as well as mindfulness classes like yoga and meditation, which countless studies show reduce stress, and increase mental well-being. Today’s workforce spend most of their time either working at a computer or on their phones, so it’s not surprising that people are looking for a work environment that values a balanced lifestyle.
Greater job control.
There is a degree of freedom that comes with coworking. People have the autonomy to make their own choices. Tenants can come and go when they please, as the bulk of coworking spaces are open 24/7. Generally, coworking spaces offer a number of spaces that cater to different needs and moods. You can choose what environment to work in, whether this is a quiet space to knuckle down and focus, or an open space to work collaboratively. If you want to recharge in the gym over lunch, you can, it’s up to you!
The coworking model has changed the game in commercial real estate. It embodies a new formula for work life that engages multiple generations and meets a new standard of tenant expectations.
It’s all well and true that offering great services and amenities makes a difference to how people address work tasks, but it is equally as important to ensure tenants enjoy community, culture and control in their working lives.
Creating this environment is simpler than you may think. Fortunately, there are several companies today that provide a service for this. Community engagement software helps landlords achieve just this, by helping to connect people, services and spaces, through a mobile app.
The onus is now on landlords to raise their game and upgrade their properties. It’s not too late to adopt the coworking DNA and offer tenants a truly 21st century workplace experience.