Increased demand for flexible, surge commercial space and reduced individual workplace footprints are at odds with a commercial real estate industry that is focused on long-term, contract-based leases. PDR senior consultant Selina Khorana tells us this causes a gaping hole in the market, and that’s why, for the co-working concept, we are seeing incredible growth rates of 21% in the next five years; in the next three years, the total global co-working market will hit over 50,000 spaces. Although the craze has taken hold on both coasts, it’s still struggling to find a foothold locally, but that will likely change with time and exposure. The current co-working operating model isn’t the most reliable because it’s heavily dependent on variable membership dues, with a high level of inherent risk. She predicts that we are going to see more joint venture operating models, as REITs, landlords and corporations will increasingly realize the value of co-working as an amenity offering. She also predicts that independent operators across the country will buy into accredited networks, gaining access to a larger pool of members, as opposed to local, isolated operations. Another coming co-working trend: exclusive membership with elite mentorship opportunities. For more information on our Bisnow partner, click here.
This content originally appeared in Bisnow.