Real Estate Execs Bet on Co-working for Cost Reduction

NEW YORK CITY – Co-working investments are expected to maintain momentum over the next five years as corporate real estate executives continue to view flexible workspace as a necessary offering for their employees and crucial to operational cost reductions, according to a Cushman & Wakefield report about corporate perceptions of the value of flexible workspace and co-working strategies.

Cushman & Wakefield in partnership with CoreNet Global, a global association of corporate real estate executives, surveyed over 550 commercial real estate executives about their view of the co-working sector, the pros and cons of using co-working, overhead costs, and past and future employee utilization of flexible office spaces. “Investors want to offer co-working where it makes sense across their portfolio wherein their own label, or with firms across the globe, or leasing even leasing out space in some of those firms,” David Smith, Americas head of occupier research at Cushman & Wakefield, tells GlobeSt.com.

According to the survey, 63% of the global participants are utilizing co-working and flex office as an important significant tool in their portfolio. “We’ve interacted with the product and large companies who use it, they generally see it as cost-neutral and a way to reduce costs get down their real estate costs,” Smith said.

The demand for different co-working options is increasing as more companies see it as an opportunity to get in and out of space faster and mitigate long term risk for headquarters having leases in flex space.  Employee access to co-working is also one that employers view as essential for their staff that is mobile or working remotely, according to Smith.