Businesses are making different choices
I love reading all the articles about the Commercial Real Estate (CRE) Industry being ripe for disruption. I enjoy even more listening to speakers talk about our fragmented industry. They proclaim how we are waiting to experience change. And businesses continue to lease space the same way they always have.
Well, it’s time to wake up! CRE has in fact been disrupted. As a result, businesses are making different choices. I’d like to introduce you to what was once a little CRE niche. It’s called co-working. Let’s review the truth about what co-working really is and how much it is really changing CRE.
So many people think co-working is just giving a solo entrepreneur a place to work, besides the local Panera. However, it’s much bigger than that. All sized businesses, including major corporations, have embraced co-working.
Enterprise level companies are signing long term, sizable leases across the country. Those leases are not always with a traditional office building Landlord. For instance, businesses are signing with Novel Co-Working, Serendipity Labs, Convene, and WeWork instead. The deals are for 6-, 20-, 50-, 200+ person offices. If that’s not a disruption, I’m not sure what is.
ACE stands for Agility, Culture, and Engagement
Why do they choose co-working? We call it ACE. ACE stands for Agility, Culture, and Engagement. Co-working companies offer all three. Most Landlords offer none.
First, agility allows a business to be nimble. It also enables the scalability that today’s companies need and demand. Many co-working companies have suites of varying sizes. They are ready-to-occupy, with all the amenity bells and whistles. They offer businesses the ability to move to a larger or smaller suite when needed (like elastic).
Second, companies choose co-working because it’s “easy”. They can plug and play. As a result, finding and moving to new space doesn’t interrupt their business. Real estate does not have to be a distraction.
Finally, businesses are currently undergoing talent wars. As a result, recruiting and retaining talent is more important than ever. They sell their culture to win the best talent. In order to do that, employers must find a space that aligns with their culture.
Many vital companies’ core values align with the features co-working companies offer. These may include a wellness room, espresso and beverage services, snacks, or fitness. In other words, amenities are key.
Similarly, engagement in the workplace stimulates creativity, collaboration, and corporate alignment. Often co-working companies offer workplace activities, networking events, shared spaces, and concierge services. These types of amenities help keep everyone engaged.
To conclude, the CRE industry is ready to be disrupted. Co-working offers amenities that align with culture and improve employee engagement. In addition, co-working companies provide businesses with a flexibility and agility that a 10-year lease simply cannot. In other words, co-working is an industry disrupter.
Visit www.coeospace.com to discover all types of move-in-ready space in seconds.