18 October 2016 | Herpreet Kaur Grewal

Changing business priorities are driving corporations to consider different workplace models.

The latest report by CoreNet Global, in partnership with architecture firm’s HOK’s WorkPlace practice, studies the impact of co-working from a corporate real estate (CRE) perspective and examines the drivers of co-working from the demand and supply side, the industry risks and implications for corporate real estate, as well as information about the owners, coworkers and centres.

It says that businesses’ need to attract talented people, reduce real estate costs, improve speed to innovation and increase productivity are driving corporations to consider different workplace models, including on- and off-site co-working.

Kay Sargent, director of Workplace at HOK, said: “Although co-working space makes up less than 1 per cent of the world’s office space, it represents an important workforce trend and highlights the strong desire of today’s employees to have workplace choices, community and flexibility.”

She said: “Driven by demand factors, including new-generation work styles and the desire for real estate portfolio agility, C-suite executives from human resources, operations, real estate and finance are increasingly interested in how co-working affects their work practices and policies—and how they need to design, manage and operate their workplaces.”

Key findings from the co-working report also include:

• The co-working concept is evolving to comprise accelerators, incubators and maker spaces. It reaches beyond office settings to include college campuses, retail locations, hotels and libraries.

 • The impact of co-working spaces on CRE includes providing new uses for older properties and for underused spaces in existing facilities.

 • The lowest engagement levels are found in employees who never work remotely. The highest employee engagement levels occur among those who work remotely less than 20 per cent of the time.

• Many co-working centres emerged in a time of high unemployment and low rents. But 54 per cent of the coworkers will leave a specific location in less than a year. 

• The high turnover and tenant instability challenge co-working centres to maintain profitability. They are vulnerable to market conditions and new competitors.