The world of commercial real estate is repeatedly changing, in part because of the ongoing integration of technology at all stages of the economy and throughout all property types. The commercial real estate markets are strong, and cautious optimism prevails after more than ten years of slow but consistent expansion.
The mainstreaming of a trend
Today’s workers have grown to expect and favour coworking space as their primary place of business. This is even more true today than it was before the coronavirus pandemic, as more companies opt for long-term remote working arrangements. Companies that use hybrid work models incorporate flexible workspace solutions into their real estate techniques to meet the demands of distant workers in various cities and regions.
Commercial real estate dynamics are being altered by co-working spaces.
Shared workspaces are gradually replacing typical furnished office space, with corporations and MNCs picking modern day spaces with Grade ‘A’ amenities, at affordable rates, instead of traditional office spaces. Co-working providers in India are expanding their footprint as companies continue to evaluate flexible space combinations across the country. Today, India is one of Asia’s largest Pacific markets for flexible space, and this trend will continue.
The decline in traditional small office leases can be attributed in part to the growth of coworking spaces.
The number of transactions in the traditional face-to-face office market from tenants with less than 10,000 square feet has lowered as coworking has become increasingly popular. Whereas the declining trend in relatively small deal volume is unquestionably a challenging issue for traditional asset owners, it may have approached an inflection point due to the sluggish growth in the coworking center and flexible shared office space sector. This waning activity could have the unintended consequence of revitalising the direct-to-owner small lease market.
New Workplace Trends for the Future
It began as a freelancers’ trend but has evolved into a viable real estate business for landlords and operators, and is now an important part of an occupier’s overall strategy. Coworking spaces in Banagalore are rapidly gaining traction in India, and the industry is anticipated to expand by twofold each year in the coming years. Workspaces used by startups are evolving along with the startup ecosystem.
Coworking desks are becoming increasingly popular among large corporations, but there is still a long way to go. Estimates place the share of coworking and managed offices at 1 percent to 3 percent of commercial real estate supplies, but growth is nearly doubling every year. Commercial real estate is impacted by coworking because:
Facilities Management
Working collaboratively entails collaborating with others. However, the benefits don’t end with the ability to share a workspace. Electricity, security, Internet, and other costs are shared by all coworkers.
Intelligent Building Technology
When it comes to designing and building a coworking space, many companies use cutting-edge technologies. As a result, coworking spaces are more appealing to professionals while also being environmentally responsible and forward thinking.
Project Management
Because coworking spaces are fully furnished, well maintained, and include all amenities as part of the price, companies do not have to spend a fortune on fit-outs and improvements as if they would if they leased a traditional office.
Coworking is the latest trend these days that allows companies to rent office space for a short period of time, similar to the office on rent. If your business is well established and you don’t have any immediate plans to grow, a plug-and-play office might be a good option for you. And if the future of your company is uncertain, a co-working space can save you money while also helping you with business administration in general. In addition, a business center office that provides shared office space can provide you with round-the-clock access, 365 days a year.
The coworking industry is not only growing rapidly, but it is also innovating and adapting to meet the needs of the future of work by combining technological innovation, a wide range of business models, global accessibility, and cross-industry attractiveness.
