With coworking emerging as the fastest growing sub-sector of the real estate market, it should come as no surprise that it is now the new normal when it comes to office leasing. The popularity of the sector has meant new reports are now released on such a frequent basis that it’s hard to keep up! But recent statistics have illustrated the growing effect of coworking in real estate and the huge growth opportunity in the coming years.
In the past few years, coworking has emerged as not only a space for freelancers and startups, but for corporates alike. Because of this, investment continues to pour into the industry and we are starting to see the larger impact that it is having on the commercial and office real estate industry.
A wealth of research reports have come out over the past 6 months, and they all highlight the same thing – the incredible potential of the coworking and flexible office sector, both today and in the future. So much in fact that Cushman & Wakefield’s latest coworking report has stated that coworking is well-positioned to weather an economic downturn.
The potential for growth is evident, with flexible workspaces currently accounting for only 1% of total office inventory (across 87 markets). Cushman & Wakefield predict that the coworking sector will represent between 5% and 10% of inventory across various markets in the coming years. Landlords are increasingly peaking their interest in the sector, and are now comfortable to allocate between 15% and 30% of a property to coworking.
Some markets are more established than others, but growth is evident across them all. According to Allwork.Space, the flexible workspace market in London grew by 25% in the past 2 years, and China, Singapore and India have all grown by 15%.
These numbers illustrate that coworking works. 2018 was a fantastic year for the sector, but if these reports are an indication of anything, it is that there is plenty more to come. The future of coworking is looking very bright indeed.