Is a Shared Office Space Worth the Investment?

Shared office spaces are becoming more popular in the landscape of commercial real estate. They provide creative alternatives for remote and hybrid workers and business leaders needing more flexible, low-cost options. 

Employers and property managers are noticing the decline in traditional office spaces. However, making the switch or investing in such a project may raise concerns as to its return on investment. 

A Growing Demand in Shared Office Spaces

Clearly, we’ve experienced a massive global shift in work culture environments since the start of the pandemic. You’ve heard talk of, “returning to normal” and the “new normal”, and while this refers to so many things, work environment expectations have a great deal to do with it. 

We’ve learned how situational productivity becomes as some workers perform better outside the office, while others do best inside traditional office environments. Within these differences are nuances. 

Not everyone considers their home environment a peaceful and effective place to think clearly and work efficiently. Yet they may equally find the office environment interruptive or distracting. Shared office spaces offer a solution to this problem. 

Shared office spaces, or coworking spaces, bring workers of like-circumstances together for a flexible, pseudo-office environment accessible anytime. Given this new trend, employers and commercial property management investors are curious about ways to improve productivity while keeping investment costs low.

As more employers and commercial real estate investors embrace post-pandemic changes, it’s worth asking how profitable this type of investment truly is.

Determining the Profitability of Coworking Spaces 

Researchers predict a significant increase in coworking spaces within the next two years. Businesses are seeking ways to reduce downtime by avoiding costly shutdowns to operations that are doable online or remotely. 

The demand for opening online services and managing operations through remote locations helps save money and remain in control should we experience another global shutdown or any threat accessing a commercial location. 

Shared work environments appear to be on the rise and are here to stay. 

Benefiting the Lease Holder

Coworking space leaseholders may profit greatly from the diverse nature of this type of commercial lease. There is no fixed way to manage and conduct a co-working space, therefore the space owner may decide how best to scale their profits. 

For example, you may set various rates for those seeking to utilize the area for short-term or long-term work collaboration. Another option is monetizing on equipment services available, such as printers, conference video call rooms, etc. 

Fees may also include:

  • Breakfast food area (morning coffee bar for workers)
  • Memberships
  • Lockers for frequent members
  • IT services
  • Data resources for larger cloud computing demands
  • Private office room rentals

Plaza Companies is the Premier Choice of Commercial Real Estate

Plaza Companies is a full-service real estate firm specializing in leasing, management, construction, and development of some of the most innovative commercial real estate projects in Arizona.  Our firm specializes in staying connected and conscientious of all emerging trends and laws.

Contact us today to learn more about leasing the right space or anything else we offer! 

 

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Whether you are looking to us for management, leasing or development services, we can help you find the perfect space. With over 40 years of experience, you can trust Plaza Companies to assist you with your real estate needs.

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