Coworking has become the catchall term for growth in demand in flexible workspace, however the operator offer is technically more nuanced. Coworking has largely been driven by aggregating entrepreneurs and freelancers. While this remains a key source of demand for operators, the segment is increasingly attracting small businesses and companies.
Flexible workplace incorporates three key choices for businesses looking for more flexible commercial real estate:
- serviced offices; and, for larger tenants
- managed offices.
What are the benefits of coworking?
- Fixed monthly fee for unlimited access on a first come first served basis
- Or more limited access on a pay as you go basis
- Includes internet access, refreshments, meeting rooms (may be chargeable), a curated calendar of events and an ever increasing range of benefits such as partner discounts
What is a serviced office?
- Fixed price per desk/per office for an ‘all inclusive’ offer
- Includes reception services, internet access, refreshments, meeting rooms (may be chargeable)
- Other services may be provided for an additional charge
- Irrespective of the size of the firm, flexible lease lengths for serviced offices afford businesses the ability to grow or shrink their office space as needed, providing options not typically available in traditional office leasing markets
What is a managed office?
- A hybrid offer between a serviced office and a traditional lease aimed at customers who want to create their own space but don’t want the hassle associated with managing it
- The space will need fitting out; this and other services can be offered by the landlord or a third party provider
Managed office space means the customer can configure and brand the space as if it were their own, rather than having to work with the existing space design and desk layout as provided in the serviced office.
Instead of paying rent quarterly in advance (in the UK) the customer pays monthly (for space, fit out, on an inclusive, flexible contract. While it can come at a premium it provides greater flexibility for large businesses looking for project team or short term space, or for high growth organisations.
OUR WORLDWIDE COWORKING AND FLEXIBLE WORKPLACE INSIGHTS
Cushman & Wakefield partnered with CoreNet Global External Link in 2019 to survey global commercial real estate (CRE) executives. The report reveals corporate perceptions of the value of flexible workspace and coworking strategies. what proportion of companies use flexible workplace solutions and just what kind of cost savings can flexible workspace bring to the bottom line? Read the survey results
Flexible workplace in 2019 accounted for 1.2% of all U.S. office inventory and is expected to grow to 30% over the next 10 years. If you think flexible workplace is a fad, a result of Millennials in the workplace or that flex workplace is more expensive than traditional office space, check out the infographic
Our 2018 U.S. report provides key data on the benefits, risks, and future opportunities in the world of flexible office space. It finds:
- Investors are comfortable with a coworking space ratio of 15-30% of a building
- This ratio is increasingly perceived as a strategic necessity by landlords and investors
- Coworking is well-positioned to weather an economic downturn
- Flexible office space will triple in size—representing 5-10% of office inventory in many markets
- Coworking demand is strong, but only 30-40% is additive
For more detail on how coworking and flexible leasing models are influencing how occupiers, workers, and investors think about the office workspace read the U.S. report
The European Coworking Hotspot Index focuses on identifying what’s next for coworking across Europe. By understanding where it is likely to go next, landlords and operators of commercial real estate can be on the front foot with respect to rethinking the design of their traditional office space. Flexible workspace – including coworking - accounts for between 10-20% of leasing activity in Central London. But, where will the model expand next in Europe and what does it mean for traditional office space? Download the European index
Our 2019 UK coworking report follows the 2018 edition. It looks at how the flexible workplace sector has evolved across central London and the UK regions. It addresses how coworking business models from both operators and landlords are adapting to changing customer demands. It asks how fast the sector will grow in the UK and what might it mean for traditional UK office space? Download the latest UK report
Coworking has taken the Asia Pacific region by storm. No longer just a real estate alternative, coworking in Asia Pacific has seen more than 8 million sq ft leased over the last 2 years. In our essential Asia Pacific Coworking Trends report we bring you 7 key trends that are driving the growth of the flexible workplace ecosystem across the region. Download the Asia Pacific report