Live-Work-Play on Track for a Big 2023 With Coworking in the Mix

This year has signaled a high watermark for live-work-play developments under construction, with 72 such projects either delivered or close to completion as of year-end — and 2023 is on track to beat that record.

A CoworkingCafe analysis of Yardi Matrix and Commercial Edge data notes that “coworking space is the new twists.” Coworking was a component in 90 live-work-play developments over the past decade, in a trend CommercialCafe analysts say caters to the rising demand for flexible workspaces. After a brief pandemic-era blip in construction, 10 new coworking spaces were integrated into LWP developments this year, with two more in the pipeline for 2023.

“The fusion between LWP and coworking is a natural response to the rising demand for flexible workspaces from remote workers, freelancers, startups or smaller businesses,” writes CoworkingCafe’s Laura Pop Badiu. “In many cases, a coworking space in an LWP building is a more convenient arrangement than a single, larger company providing an office space there that would only benefit employees who also happen to be residents in said building. Conversely, coworking spaces welcome workers from any and all companies.”

New York City has the most LWP buildings at 50 with an additional five planned for 2023, and five of the NYC LWP buildings include coworking. While multifamily typically dominates LWP developments, office is the dominant component in New York City (58% of total square footage) and also in Seattle, where office space takes up 61% of LWP space.

In New York, “despite a significant decrease in the number of LWP developments the following year (from seven in 2020 to only two in 2021), it appears that the post-pandemic era is set to follow an upward trend: six new LWP buildings opened in 2022, and there are already another four in the pipeline for next year,” according to the CoworkingCafe analysis. And “while most of these spaces have traditional offices incorporated (58% of the total square footage), developers in New York City also focused on coworking areas. In fact, five of them were included in LWP developments in the last 10 years, which is the highest number of incorporated flexible workspaces in our ranking.”

Philadelphia follows behind New York with 20 LWP developments. Another is set to open in 2023, and two more are expected in 2024. Miami clocks in at #3 with 17 developments and four more in the works next year, but coworking accounts for just three LWP buildings in the city.

“While the pandemic blurred the lines between living, working, and playing, rental communities that include residential, office and retail space have more than doubled in demand throughout the United States just over the past decade,” said Doug Ressler, business intelligence manager at Yardi Matrix. “LWP apartments present a unique opportunity to blend accessibility with desirable living experiences, world-class amenities, communal green spaces and exciting restaurant, retail, and entertainment options.”