Industry Facts

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The way we work has changed and the places we work from have evolved. Simply stated, the way we look at and experience work has been revolutionized. Much of this is due to technology, but another part is due to the rise of knowledge-based economies and to the rising awareness of integrating life and work. This new trend has had an impact in the world of real estate, specifically as it relates to office real estate. While 30 years ago we had business centers and executive suites that very much resembled corporate headquarters, today we have coworking spaces, an evolution from the business centers of back in the day. And the birth of coworking has powered the flexible workspace like never before. Though many speculated just a few years ago that coworking was a fad and would eventually disappear, this has proven to be far from the truth. According to our research, coworking spaces today now take up approximately 27 million square feet of office space across the US; in Manhattan alone, the flexible workspace is the fastest-growing industry; research has found that coworking users will rise to 5.1 million by 2022; every month (in the US) there are over 12 million web searches for serviced offices, shared workspace, virtual offices, coworking, and/or conference center rentals; and by 2020, 50% of large companies are expected to have some form of shared office space in their portfolio.

The shared workspace industry is a booming industry, and it’s expected to continue to grow. Large amounts of investment are being poured into flexible workspace solutions, and 30+ years of successful business centers and executive suite operations prove that it’s a profitable business, that can cater to the needs of companies and individuals across a wide array of industries.

Why Start a Coworking Business

Coworking is currently a growing and evolving industry. A movement that started as a way to bring affordable workspace to entrepreneurs and freelancers has now become the workplace of choice for individuals and companies large and small across many industries, in all corners of the world.

Coworking has revolutionized the workplace, making it human-centric, helping integrate the lines of life and work, and improving wellness. It’s also helped companies attract and retain top talent. In the US alone, coworking takes up more than 27 million square feet of office space, and that number is expected to keep growing, especially as large companies begin to increasingly incorporate coworking into their real estate strategies in order to remain resilient and dynamic in changing and evolving economies.

Demand is high for coworking, both in large cities and small. The market exists, and when managed effectively, coworking and shared workspaces can be highly profitable and scalable.

Incorporating a coworking business into your commercial property investment generates tremendous ROI in the form of both market rate rents paid by the business and profitability from the business. Additionally, the coworking business presents a lucrative business opportunity for any entrepreneur looking to pursue a new business venture. While many shared workspace/coworking operators lease space from a landlord, those operators that both own the building and the business generally see 2-3 times the normal yield on their real estate investment compared to a traditional office lease tenant.