Commercial Real Estate: Is Co-working Space the Way of the Future?

As we all continue to discern what the post-COVID world will look like, it seems that everything is now up for re-engineeing. Though major companies are choosing to expand their office spaces, for many, the company office has become far less necessary than we once thought. But what happens when you do need space?

Co-working is not new by any means. I’ve been using REGUS when traveling for 30+ years. Nevertheless, when we think of co-working, most of us think of WeWork because of their aggressive growth and their desirable high end product. Some companies have chosen to lease permanent spots at co-working spaces due to the short term commitments requirement. Not having to purchase furniture and everything else that goes with a permanent office is a major plus for these businesses.

But is co-working desirable for your company? Co-working is expensive, but keep in mind the staff you’d need for office management and maintenance in your own space. Once you run the numbers, it will likely still be expensive… There is always a cost premium for shorter commitments and convenience.

As I said in previous posts about commercial office and retail properties, the availability and pricing of co-working space in your area is dependent on how your state or local government is responding to COVID. For instance, in San Francisco co-working companies have lost customers because they can’t go in to work. Yet, in other parts of the country, co-working firms are booming, like these two in Franklin, Tennessee and Birmingham, Alabama.

If you’re still trying to figure out how your business is going to bounce back from 2020, Harvard Grace can help you analyze your firm’s office needs based on your area’s restrictions. Please contact us if you would like to discuss further at stewart.heath@harvardgrace.com.