Global demand for Co-working spaces is expanding at an average of 10-15% per annum as a shared work environment is increasingly seen as part of a company’s growth strategy for cost containment and flexibility.
Last year alone, Co-working operators leased about 5 million square feet (msf) in Asia Pacific. The size of co-working stock is estimated to be highest, in the range of 40 msf in the United States (US) followed by Europe (20 msf), and Asia Pacific (10 msf). As the trend gains momentum, developers are incorporating flexible working environments into building design.
Real estate costs and containment remain a top priority for CRE leaders this year as they are mindful of the uncertainties in the macro environment, expecting conditions to remain challenging in the short term.
Against this backdrop, most CRE managers from the Professional Services, Technology, and BFSI sectors are willing to adopt flexible work settings and embrace the co-working practice or at least implement some of its features in their organizations. Enthusiastic about its prospects, the demand for shared offices is growing, and entrepreneurs have shown openness to Co-working space.
The environment, amenities, cost savings, and flexibility that Co-working space offers make it a great case for all kinds of occupiers including small businesses, start-ups, and larger companies. However, their viability in the long term is yet to be tested.
Find out why Co-working is being assessed as a cost containment strategy; what makes a shared workspace popular, and why co-working has been the most transformational practice in recent years here.