Co-Working is the Face of the Future

Nello Wall Systems has been heavilty involved in the coworking sector for years. Our glass office fronts proudly grace the collaborative environemnts across the nation, and the trend just keeps growing. Check out this article that shares possible scenarios for the future of coworking, which originally appeared in today's edition of BisNow National:

5 Possible Scenarios For The Future Of Coworking

As coworking activity continues to increase in the U.S., including doubling inventory in the past couple of years in major markets, industry experts and asset owners are beginning to study what the future holds for this fast-growing segment. In analyzing the likelihood of the growth to continue, industry experts at Newmark Knight Frank and JLL took a deep dive in separate reports into how this sector of commercial real estate is evolving. In NKF's report, the term coworking was used as an overarching term to describe coworking, flex office space and executive suites, which are defined as coworking spaces with employees of different companies operating within the same space, but without much interaction among members. “There has been a lot of media coverage on current and past coworking and flexible office trends, but we have not seen much on what this might mean for the future of the office market,” said Newmark Knight Frank Associate Director Bethany Schneider, author of NKF's report.

“I find it really interesting how the coworking industry has grown so quickly,” Schneider said. “I remember writing about some of the first coworking leases in D.C. in 2013 — that’s pure coworking, executive office suites like Regus have been here much longer — and how it was such a novel trend at the time. “Now five years later, those leases make up a major portion of our market’s demand, which I don’t think anyone saw coming at the time,” she said. Overall, coworking is dominating the office market in cities including Austin, New York, Denver and Los Angeles. Newmark Knight Frank data showed rapid growth of coworking firms leasing office space in those markets between 2016 and 2018. Coworking made up almost a third of Manhattan’s office leases in August. Even multifamily landlords are jumping into the coworking game, with some of them changing lobbies or amenities spaces into workspaces. According to the JLL survey, most corporate space is underutilized 60% of the time. “Our research, and our conversations with our corporate clients across the globe, indicate that the flexible work is not just a passing trend; it is part of the very fabric of the future of work,” JLL Corporate Solutions, Americas President Doug Sharp said.

Sharp said one thing coworking has done for the office industry is help visualize what a nontraditional work environment can look like. “The pervasiveness of flexible work is far beyond just coworking, and it has created engaging, inspiring workplaces that also reflect the realities of how we live, work and play,” he said. “The modern flex work model empowers employees to trade traditional work-life balance for work-life integration, which for many feels truer to our ‘always on,’ ever-connected environment.” Based on the 24 U.S. metros studied in the Newmark Knight Frank study, coworking currently occupies 49.7M SF of office space, which equals 1.4% of office inventory in these areas. Schneider’s report produced five potential scenarios for what coworking could look like by 2023, based on potential changes in the economy:
Read more at: https://www.bisnow.com/national/news/office/what-does-the-future-of-coworking-look-like-here-are-5-different-scenarios-96163?utm_source=CopyShare&utm_medium=Browser5. 
 

 

 

 

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