Nov. 28, 2017
Coworking presents a solution to a variety of workplace challenges, offering a pay-as-you-go alternative to traditional office space. Typically thought of as a place for budding start-ups, coworking can help solve common business challenges regardless of where a company is in its life cycle.
Below we explore both the advantages and potential drawbacks of coworking to help you consider if coworking makes sense as a part of your real estate strategy.
Advantage: Adoption of coworking solutions can reduce initial out-of-pocket costs, enable greater efficiency and potentially drive down total occupancy costs.
Drawback: As users achieve scale and accrue more time at a single location, the per-square-foot occupancy costs of flexible space arrangements may exceed traditional lease models.
Advantage: Leveraging a coworking platform can help companies better match their real estate needs with the needs of their workforce, improving the employee experience, enabling more collaboration and potentially reducing commute times.
Drawback: Companies must also be mindful of flexible space’s potential distractive influences and impact on productivity.
Opportunity: Coworking arrangements may foster innovation through increased employee interaction, exposure to new business concepts and sharing of ideas.
Drawback: The communal nature, open design and glass-heavy buildouts of most flexible space locations could inhibit the safeguard of intellectual property.
Opportunity: Flexible space options can help organizations “buy time” as they launch new initiatives, establish growth projections and develop longer-term real estate strategies.
Drawback: Companies must assess whether flexible workspace is accretive to their culture and compatible with their broader business strategies, especially as it relates to recruitment and retention of talent.
Want to discuss if and how flexible workspace could fit into your real estate strategy? Contact us today.