Commercial Real Estate During a Pandemic
The rapid rise of a global pandemic certainly changed the commercial real estate industry. Many companies shifted immediately to fully remote work and never looked back. Others took a brief hiatus from their corporate office buildings but knew they would return as soon as possible.
When working from home became a permanent reality for some, they relished the idea of never having to leave home. Quickly, however, many missed the office environment and thus began the recent dramatic increase in communal workspaces all across the country, including here in Northern Colorado.
Coworking Begins
San Francisco was the home to the first communal office or coworking space, opening in 2005. Since then, employees and employers alike have realized the benefits of the coworking sector. The combination of flexibility for the employee while creating a structured work environment proved beneficial.
Along with flexibility, communal office spaces foster creativity, productivity, and connection with others. Studies have shown that an overwhelming majority of people working from a coworking space perform better and enjoy the ability to collaborate with the diverse population working nearby.
Changing Commercial Real Estate
Companies like WeWork, one of the largest coworking providers, are causing the following changes in the commercial real estate industry:
- Communal workspaces allow building owners to benefit from purchasing more space than one business can fill.
- Some companies will not have to buy or rent a single piece of commercial real estate if communal workspaces are conducive to their business.
- Commercial real estate owners with unused spaces in their building can collect passive income by leasing unoccupied portions for coworking.
- More companies will continue to operate with employees across the county as they utilize the amenities that coworking spaces offer.
Is Communal Office Space Taking Over the Market?
The quick answer is no. Communal office space is increasing in popularity, but the reality is that it doesn’t work for every industry. Medical facilities, labs, and many other corporations will still need or want their own facilities for many years to come. Coworking spaces are a great addition to the commercial real estate industry and can benefit building owners, but they aren’t taking over the market anytime soon.
Contact Steve at WeBrokerCORealEstate or 720-600-9513 to discuss any of your commercial real estate questions or needs in Longmont, CO and our neighboring communities.
