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Coworking trends and commercial real estate implications

On Behalf of | Jun 8, 2016 | Commercial Real Estate

A Missouri companu may find that a long-term lease can be cumbersome in an era of rapid technological change. As business methods such as co-working gain in popularity among companies of varying sizes, the need for space may dwindle significantly. According to statistics, the average amount of space per employee decreased by nearly 50 square feet between 2010 and 2012. A drop from the 2012 numbers of another 25 square feet per employee is projected by 2017. Commercial real estate could be affected because of these lower space requirements.

One of the main reasons for the declining space needed per employee is the co-working concept, which focuses more on communal work areas than on private offices. A large office was once a sign of success for an employee, but in today’s changing work environment, many business leaders are finding a communal arrangement to be more conducive to creativity and productivity. The trend is proving to be popular with both large and small organizations.

Shorter leases provide a better solution for those dealing with significant changes in their company dynamics. A byproduct of the co-working approach to business is the availability of excess office space in some companies’ facilities as they streamline. In many cases, these spaces are being made available for rent. Some commercial properties are even being developed to address the need for access to formal business space on sporadic terms. Office rentals can range from a few hours to longer periods as these demands are accommodated.

An important part of a company’s business plan is the approach to handling day-to-day activities involving both employees and clients. Renting space on a temporary basis could be ideal for early operations. However, an attorney might be helpful for formulating a plan to find more permanent commercial property solutions as the company grows.