Collaborative workspaces are becoming increasingly popular. The open environment falls in line with the values of today’s employees and it provides many benefits for both your staff and your bottom line. Collaborative workspaces attract businesses of all sizes– from startups to global enterprises. The workspace is typically made up of a mix of private offices and shared common spaces, which promotes flexibility throughout the workday. A common misperception is that employees will be seated in a coworking space amid many other businesses. However, this is not typically the case, your company will most likely have a dedicated office or area with the added bonus of being able to access the common areas and all the mod cons and amenities.
What to consider if you’re launching collaborative workspaces
If you are looking to piggyback off this hot new trend and add collaborative workspaces to your real estate investment portfolio, you would be smart to consider the following:
- Design: Find or build a building that allows you to create a flexible working environment that multiple organizations and individuals can share. Integrate design elements that give tenants the opportunity to do their best work. Design features can include a variety of seating options, conference spaces, technology access, noise proof areas and breakrooms for gathering. Various features will attract more interest in your collaborative workspace and set you apart from the many industry competitors.
- Networking: Many businesses choose to place their teams in collaborative workspaces so they can engage in conversation and connect with enterprises from different industries. This allows new innovative ideas to take shape and gives more opportunity to grow your network.
- Technology: Build and configure a solid IT infrastructure offering high speed internet access with secure Wi-Fi and electrical outlets in every nook and cranny (remember the modern worker is always on the move). Offer the best in conference room technology, and provide a secure work setting, which requires a swipe in/out badge for entering and exiting the workspace.
Competition in Phoenix
Phoenix is the sixth-fastest growing collaborative workspace market in the U.S., according to a recent CBRE report. Given this statistic and the relatively low cost of living, it is no surprise that big brand names such as Industrious, WeWork and Novel Coworking are entering the market and contributing to its success. Collaborative workspaces account for 1.3 percent of total office space inventory in Phoenix, which is up from 0.8 percent the previous year. The CBRE report states that growth in Phoenix lags slightly in comparison to other major cities, but they expect to see accelerated growth of up to 60 percent in the next year. Major coworking brands are actively looking to setup shop in Phoenix and test a new market, so if you are in the market to invest in a new commercial real estate project this is definitely an area to consider.
How does leasing differ from traditional office space leasing
Collaborative workspaces have the unique advantage of being able to offer tenants a foot in the door to a more expensive and sought-after space in a prime location. Leasing a coworking space can be more cost effective as you only pay for what you need, and the leases can be negotiated for shorter terms. As a result, businesses can quickly open an office without incurring broker fees or costly buildouts.
Advantages and amenities
Whether you’re a commercial real estate investor, an employee of a startup leasing coworking space, or the owner of a global enterprises who has secured the entire first floor of the hottest new location in town, there are many advantages to choosing a collaborative workspace. Collaborative workspaces tend to be located nearby restaurants and shopping. The spaces themselves are typically modern in design and provide additional perks like a fully stocked kitchen or in-house café, a receptionist, tenant mixers and educational workshops. If you are in the commercial real estate sector and need a trusted professional to work with, then look no further. Landmark Title Assurance Agency specializes in highly complex transactions, which often involve multiple parties, properties and even states. Our team of experts knows to anticipate challenges and solve the issues to ensure the closing process is both smooth and accurate. If you have found a commercial property that you would like to convert into a collaborative coworking space and you’re looking to open an escrow, please contact us to get the process started. Landmark Title looks forward to working with you.