HOK’s WorkPlace practice, in partnership with the UK Chapter of CoreNet Global, has released a new report that studies the impact of coworking from a corporate real estate (CRE) perspective.
Coworking is one of the fastest-growing sectors of the commercial real estate market. The new report, Coworking: A Corporate Real Estate Perspective, examines the drivers of coworking from the demand and supply sides, the industry risks and implications for corporate real estate, as well as information about the owners, coworkers and centers.
The HOK/CoreNet Global Coworking report highlights the ideas that changing business priorities and the need to attract talented people, reduce real estate costs, improve speed to innovation and increase productivity are driving corporations to consider different workplace models, including on- and off-site coworking.
Key findings from the Coworking report also include:
- The coworking concept is evolving to comprise accelerators, incubators and maker spaces. It reaches beyond office settings to include college campuses, retail locations, hotels and libraries.
- The impact of coworking spaces on CRE includes providing new uses for older properties and for underutilized spaces in existing facilities.
- The lowest engagement levels are found in employees who never work remotely. The highest employee engagement levels occur among those who work remotely less than 20% of the time.
- Many coworking centers emerged in a time of high unemployment and low rents. But 54% of the coworkers will leave a specific location in less than a year. The high turnover and tenant instability challenge coworking centers to maintain profitability. They are vulnerable to market conditions and new competitors.
“For corporate occupiers and other real estate professionals, the coworking trend is worth watching, exploring and testing,” said Curtis Knapp, director of consulting for HOK. “It is a way to add flexibility to the portfolio and help match the ebb and flow of supply and demand. It can be one solution to the many challenges posed by the changing nature of both work and worker.”
Related Stories
Multifamily Housing | Mar 14, 2023
Multifamily housing rent rates remain flat in February 2023
Multifamily housing asking rents remained the same for a second straight month in February 2023, at a national average rate of $1,702, according to the new National Multifamily Report from Yardi Matrix. As the economy continues to adjust in the post-pandemic period, year-over-year growth continued its ongoing decline.
AEC Tech | Mar 14, 2023
Skanska tests robots to keep construction sites clean
What if we could increase consistency and efficiency with housekeeping by automating this process with a robot? Introducing: Spot.
Industry Research | Mar 9, 2023
Construction labor gap worsens amid more funding for new infrastructure, commercial projects
The U.S. construction industry needs to attract an estimated 546,000 additional workers on top of the normal pace of hiring in 2023 to meet demand for labor, according to a model developed by Associated Builders and Contractors. The construction industry averaged more than 390,000 job openings per month in 2022.
Industry Research | Mar 2, 2023
Watch: Findings from Gensler's latest workplace survey of 2,000 office workers
Gensler's Janet Pogue McLaurin discusses the findings in the firm's 2022 Workplace Survey, based on responses from more than 2,000 workers in 10 industry sectors.
Architects | Feb 24, 2023
7 takeaways from HKS’s yearlong study on brain health in the workplace
Managing distractions, avoiding multitasking, and cognitive training are key to staff wellbeing and productivity, according to a yearlong study of HKS employees in partnership with the University of Texas at Dallas’ Center for BrainHealth.
Office Buildings | Feb 9, 2023
Post-Covid Manhattan office market rebound gaining momentum
Office workers in Manhattan continue to return to their workplaces in sufficient numbers for many of their employers to maintain or expand their footprint in the city, according to a survey of more than 140 major Manhattan office employers conducted in January by The Partnership for New York City.
Giants 400 | Feb 9, 2023
New Giants 400 download: Get the complete at-a-glance 2022 Giants 400 rankings in Excel
See how your architecture, engineering, or construction firm stacks up against the nation's AEC Giants. For more than 45 years, the editors of Building Design+Construction have surveyed the largest AEC firms in the U.S./Canada to create the annual Giants 400 report. This year, a record 519 firms participated in the Giants 400 report. The final report includes 137 rankings across 25 building sectors and specialty categories.
AEC Tech Innovation | Jan 24, 2023
ConTech investment weathered last year’s shaky economy
Investment in construction technology (ConTech) hit $5.38 billion last year (less than a 1% falloff compared to 2021) from 228 deals, according to CEMEX Ventures’ estimates. The firm announced its top 50 construction technology startups of 2023.
Multifamily Housing | Jan 24, 2023
Top 10 cities for downtown living in 2023
Based on cost of living, apartment options, entertainment, safety, and other desirable urban features, StorageCafe finds the top 10 cities for downtown living in 2023.
Industry Research | Dec 28, 2022
Following a strong year, design and construction firms view 2023 cautiously
The economy and inflation are the biggest concerns for U.S. architecture, construction, and engineering firms in 2023, according to a recent survey of AEC professionals by the editors of Building Design+Construction.