Top 5 Benefits of Adding Coworking to Your Commercial Property

As more landlords and property owners turn to coworking, it’s time
to think about the ways coworking spaces can positively impact commercial real
estate. Property owners have entered the coworking market by starting to sign
joint venture agreements, management agreements, or by launching their own
coworking brands.

If you’re a property owner and are thinking about incorporating a
coworking space within your building, here are some of the benefits you should
keep in mind.

Coworking can increase your property value
A recent report found that 40% of buildings that incorporate flexible space achieved

1. values greater than the average for office buildings in
   their market. However, before you go all out on coworking, keep in mind
   that the percentage of square footage allocated to coworking has a
   significant impact on property value. Too much flexible workspace implies
   too much risk, while not enough doesn’t impact property value. Experts
   believe the sweet spot is between 20 and 40% of a building’s square
   footage.
   
   
   
   
   
   
2. Coworking can increase foot traffic to a building or
   retail space
   
   According to JLL, “coworking presents a
   viable solution for vacant retail space by decreasing vacancy and driving
   additional foot traffic with a guaranteed daytime population.” Moreover,
   some coworking brands also offer a coffee shop within their space, which
   means that more passersby are likely to stop and enter your building.
   
   
   
   
   
   
3. Coworking spaces can lead to potential tenants
   
   Various
   coworking members are small businesses or startups. When these businesses
   grow, the coworking space might not be able to provide them with more
   space. These companies could become potential tenants of your building as
   they grow and require more office space.
   
   
   
   
   
   
4. Coworking can create an additional revenue source
   
   If
   you are interested in incorporating a coworking space into your building,
   you should consider a profit-sharing agreement with a third-party
   operator. This means that a coworking space operating in your property
   would provide you with an additional revenue source based on how well the
   space is performing.
   
   
   
   
   
   
5. Better technology infrastructure and better build-outs
   
   The
   majority of coworking operators typically incorporate smart technologies
   into their design and build-out. Coworking spaces also typically offer
   smart access and other cutting-edge security technologies. People and
   companies today are interested in integrated technology in the workplace;
   coworking operators can serve as an example of how your property can adapt
   to those needs.

If you’re a property owner interested in the coworking market, reach
out to us.