How the rise of coworking spaces has impacted the real estate industry

Coworking space in Bangalore

Coworking spaces have caused a continuous disruption in the property market and continue to impact developers, investors as well as end-users.

The entire story of coworking spaces began in the year 1980s when Regus gave birth to the idea of a serviced office by taking office buildings on a lease, subdividing the available space and leasing out fully- furnished and ready to rent spaces to small businesses.

It is from the past few years that this sector is seeing tremendous growth. From freelancers to entrepreneurs, small businesses, everyone has embraced coworking spaces. Though this trend has been changing the way companies operate, its impact on the world of commercial and real estate seems to be more interesting.

Coworking is ripping up the old real estate scenario. It is over the past three years that the number of coworking spaces has grown by 240% globally. Around two-thirds of current coworking spaces are all set to expand their office spaces by 70% and one-third plan to open at least one more office in a new location.

Previously landlords enjoyed long-term and steady revenue but now the rise of shared office spaces has given the landlords a better and profitable way to increase their income.

The future of real estate will now be defined by customized buildings, shorter terms, and more flexible leases. Renting out spaces as per square feet can help landlords generate more income. Per square feet method of renting generates more revenue than what the traditional office space offers.

According to reports, the shared office spaces occupy 25% of the workplace. As companies grow, they require more space to provide better work experience to their members. Better amenities, conducting a corporate event, workshops, etc, still attract and encourage coworkers to stay in the same place.

With the increasing trend of coworking spaces, a lot of real estate investors are all set to provide flexible workplaces committing between 15% and 30% of commercial space on an average.

Whether the future of real estate or a simple method of revenue generation, coworking spaces are surely changing the game not only for startups and small businesses but also for the real estate industry.

Gopalan Coworks thrives to provide you the ultimate coworking experience. You can focus on your work while we focus on giving you the workspace that your business deserves.

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