Coworking Space: A Hot Market in Real Estate
Coworking space has become popular in the last few years. There is good reason for this trend. Coworking space or shared office space used to be the preserve of small start-ups and freelancers who occupied offices jointly mostly to cut overhead. Today, the coworking industry looks a lot different. As urban centers revitalize, corporations are finding that a nice suburban location is leaving them stuck on the margins of local business activity.
This desire of traditional firms to locate within urban business markets is a key factor driving the rapid growth of the coworking space industry. U.S News & World Report tells us that the five year (compounded) growth rate is 21 percent.That is about three times the average growth for commercial real estate.
You may be trying to decide if you should invest in coworking space, and how to find good opportunities. A few years ago, your options were pretty limited. Today, you can find three good coworking space investment vehicles:
A shared office space facility is just like any other business investment in most ways. Before you risk your money, examine the company’s performance record. Does it provide adequate liquidity? Is it located in a market that includes public transportation or other resources that will foster growth? Is the company positioned to ride out economic downturns or other adverse events? Finally, members of coworking spaces value the congenial, cooperative work culture typical of shared office spaces. Management must foster this feature to be successful.
A good example of a modern coworking space provider is Workville of New York City. Located at 1412 Broadway in the heart of Manhattan, it is a cutting-edge coworking facility. Workville is one of about 20 sites operated by this company. The company stresses providing supportive resources ranging from conference rooms to copy centers. There is even a terrace and lounges you can reserve for meeting clients.