The shared workplace is undergoing a rapid and unprecedented transition. Co-working, a type of shared workplace, is an emerging model which provides many of the amenities of traditional serviced offices but places a much greater emphasis on designing space that creates a community and an experience for users. This model has proven to bring a unique energy and connectivity to the shared workplace that previously had not existed.
Projections of untapped market share for co-working space usage have boosted investor confidence in co-working startups. Valuations for more popular co-working startups are more akin to a tech startup than a real estate company.
To date, co-working spaces are largely occupied by independent workers who have sought a cost-effective place to work outside the home. However, large occupiers seeking flexible, lower-cost and attractive solutions are beginning to show interest in this emerging space. In fact, leading commercial real estate firm CBRE in the 2015/2016 Americas Occupier Survey, which provides a consensus view on the strategies and priorities of 226 Americas-based corporate real estate (CRE) organizations, found that more than 40% of respondents are using or considering shared workplaces.
In this research report, CBRE focuses on the megatrends driving the sustainability of the co-working model right now. Economic uncertainty is compelling companies of all sizes to better manage their expense lines. However, intense competition to secure talent is driving many companies into urban areas where rents continue to rise and wages are experiencing upward pressure. The employees these companies want to attract and retain regard blending work and life as integral to their happiness and success. Creative space strategies, such as the use of co-working facilities, will need to be seriously explored and perhaps implemented to satisfy management and employee needs.
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