The market for office space is a constantly evolving one, and the popularity of coworking spaces is adding to the list of changes.  

These changes are only amplified by the remote work arrangements during the COVID-19 pandemic.  

There is a need for commercial property investors to understand and embrace the changes in the market in order to maximise tenancies and take advantage of the trends.  

Nowadays, the demand is growing for coworking spaces because of the popularity of flexible work environments and hybrid working. Tenants are moving towards office spaces that can accommodate these coworking spaces and flexible arrangements.  

Let’s take a look into how office spaces have shifted and what future or current landlords should look out for to be more in line with the demand for coworking spaces.  

What is Changing? 

We all remember being locked indoors, communicating over WhatsApp and taking Zoom meetings in our pyjamas. While much has changed since then, the effects of the ‘work from home’ culture still linger.  

Nowadays, a growing number of organisations are reassessing their remote working policies and formulating strategies to accommodate a higher presence in the office. However, a full week in the office remains unlikely.  

The result is that work environments are beginning to look like team members working from home for a day or two each week. So, on any given day, there may be a different set of employees in the office. Businesses are moving into buildings that support flexible work arrangements and coworking spaces.  

How Do Coworking Spaces Change the Market for Office Space? 

The popularity of coworking spaces is complemented by the move into the digital age, with popular software like Slack, Microsoft Teams and Zoom being very familiar names from the COVID-19 era that have helped shift work online.  

This shift means a modern office space requires fewer assigned desks, fewer meeting rooms and more open areas where you can plug in and work wherever you like. Coworking spaces can look like break-out areas, couches, hot desks, multi-functional areas and rooms for collaboration. The market is beginning to favour landlords who understand what this means for their properties and can adapt to the changes. These changes ultimately change what size of floor plates are desirable to office tenants.   

What Do Coworking Spaces Mean for Commercial Property Investors? 

It’s important for commercial property investors to understand the shift in the market for office spaces to avoid being left with empty rooms and low tenant retention. As always vacancy is expensive in more ways than one.  

Landlords looking to get into the commercial office property market should keep an eye out for properties that can accommodate coworking spaces. These are properties with lots of open space, easily adjusted fitout, extra multi use rooms and enough power outlets for workers to plug in their laptops wherever they feel comfortable.  

Businesses looking to modernise their work culture will be drawn towards these properties and are more likely to stay long-term.  

Need Help Navigating the Changes?  

As with all changes in life, getting the right support from people you trust can make adapting to changes, such as coworking spaces, an enjoyable experience rather than a daunting task.  

That’s why tapping the knowledge of the experienced property managers at Azure can be a game-changing step.  

We’re here to provide you with the support you need.  

Contact us to see how we can help.