Will Coworking Work in Secondary and Tertiary Markets?

The way we work today is much different from ten years ago. Many millennials have never worked out of traditional office space but only have worked in coworking environments. The question is, as coworking grows, will it be as successful in secondary and tertiary markets along with dense urban cities?

5 Reasons Why Coworking Businesses Thrive in The Suburbs

Let’s take a look at a few reasons why the suburbs may be prime locations for coworking spaces.

People Want to Live Close to Their Office

According to CBRE, coworking has excellent potential to positively impact secondary and tertiary markets because people who live in these markets are usually suffering from long commutes into the city and the primary reason they travel into the city is to connect with people and gain better experiences. In 2017, 51 percent of people surveyed, in the annual CBRE tenant said that one of the top reasons why they chose a coworking space was because it was located close to their home.

Generations Matter

Millennials now outnumber baby boomers and are reaching an age in which they want to settle down and purchase homes. One might think that millennials want to live in these dense, urban areas, but they are finding the more affordable housing options in the suburbs. These millennials are settling down, buying homes and will be raising children and will want to ease their work-life balance.

These transplanted millennials will demand similar work environments as they experienced in their previous urban environments.  Companies will be thinking about this thereby providing opportunities for developers to create coworking environments in these suburban and tertiary markets.

Investors are Flocking to Secondary and Tertiary Markets

According to Colliers International, investors are flocking to secondary and tertiary markets because they offer higher returns. Rising occupancy and rental rates in secondary and tertiary markets offer higher yields due to the lower investment needed for real estate acquisition. Cap rates are declining throughout the country, but remain higher in secondary and tertiary markets, making them prime locations for investors to create coworking environments and/or create joint ventures opportunities with operators.

Low Barriers to Entry

With so many new coworking companies are coming online, many coworking operators are facing heavy competition in urban areas. With secondary and tertiary markets, there is less competition allowing operators to establish similar environments while providing a more economic opportunity for its members. Not only does this place the coworking operators near residential rooftops, but they aren’t paying urban rental rates for their space.

The Economy Favors Risks

Another reason coworking will succeed in secondary markets is because the current economy is encouraging risk-taking. The improving national and local economies are encouraging investors and companies to enter markets they might not have previously considered. Investors are showing great interest in suburban office buildings as prices in CBDs are becoming too high for some, according to Colliers International.

Coworking is a trend that has transformed into a norm for office space. People no longer want to work out of a traditional office, but instead want to work in a flexible space that is close to home to avoid long commutes.

With the current focus on mixed-use developments, suburban and tertiary can provide similar walkable amenities as their urban counterparts. Due to the low barriers to entry in these secondary markets, a favorable economy and a generational shift, market analytics seem to indicate coworking will thrive in these markets as it has in urban cores.

Coworking Spaces in and Around Atlanta

SharedSpace is a regional coworking business focused on creating modern, professional, and energetic work environments to stimulate the creativity and productivity of entrepreneurial companies and their teams! Please don’t hesitate to reach out if your business is looking for creative opportunities to reinvigorate your workforce and brand with a modern coworking environment like SharedSpace. Visit our homepage to book a tour today!

How to Choose the Best Coworking Space for Your Business

Are You Picking the Best Coworking Space For Your Company?

Are you sure you are choosing the best coworking option for your business? Do you know what to look for? How can you determine essentials vs. wants? If you are working from home or running your small business from a stuffy office space and need a change, coworking can be a great option, as long as you know which coworking space will work best for your business. If you are a larger company considering coworking because of the impending accounting rules you may require a coworking space with lots of additional amenities. Here are a few things to consider.

What to Consider When Choosing a Coworking Space:

Location

Maybe right now you are powering through a long commute and want to be closer to home. If so, location is one of the most important factors when assessing a coworking option. While you may not have the budget for a fancy office in an urban center, you can easily rent a desk or a conference room at a coworking space in a great area. If you meet with clients often, you want to make sure you provide a professional image as well as a location that is accessible. If you have a geographically diversified team, you want to ensure they can access the office easily.

Get a Vibe for the Culture

Not all coworking spaces are the same. You might find that the crowd at certain coworking spaces is too buttoned up or maybe too relaxed. You want to ideally work with like-minded professionals whom you can collaborate and work with. One of the most significant benefits a coworking space can offer you is the community feel. Many coworking operators will allow for a trial period of up to two weeks. Take advantage of this to get an authentic feel for the vibe of the coworking hub.

The size of the overall space should also be taken into consideration. Studies show that coworking environments of over 275 members lose that community or “cheers” feel. If you are looking for a real community, you may want to consider regional or local coworking options rather than one of the large national and international brands.

Scope Out Amenities

Many membership packages to coworking spaces offer a wide variety of amenities from beer and office supplies to state of the art meeting spaces. Find out whether the amenities offered will be useful for your business and will provide a reliable, ongoing source of help that boosts your productivity. One thing you may want to ensure a coworking space offers is a kitchen and lounge area where you can put together a quick lunch or grab a cup of coffee.

Look at Your Budget

If all of the above are essentials and wants, then make sure you can afford it. Look at your finances and determine how much you can spend on office space each month. Coworking concepts offer flexible contracts, and some even offer month-to-month memberships, but of course, it is much more cost effective to find a permanent base that works with your budget rather than jumping from one coworking office to the next.

One of the best things you can do to make sure you are picking the best coworking space for your business is to take the time to actually visit the actual location that would be your “home-base” and work from it for a few days to see how it works with your workflow and desires and needs. Do research and ask around to see what other businesses are using for coworking space. All of these things will help you decide on whether a coworking space is the right fit.

Atlanta Coworking Facilities

SharedSpace, is a regional coworking business focused on creating modern, professional, and energetic work environments to stimulate the creativity and productivity of entrepreneurial businesses and their teams! Please don’t hesitate to reach out if your business is looking for creative opportunities to reinvigorate your workforce and brand with a modern coworking environment like SharedSpace. Contact us to today to schedule a free tour!

Can a Coworking Space Thrive in the Suburbs?

Can a Coworking Space Thrive in the Suburbs?

Currently, 90 percent of coworking space is located in dense, urban areas. Most, if not all of suburban development happening today, has a mixed-use component, offering amenities for coworking close and within walking distance. The million dollar question professionals are asking is can coworking survive in the suburbs?

Coworking Space Expands to the Suburbs

The rise of suburban coworking space showcases a broader trend occurring in office real estate across the country. The suburban office has seen positive absorption for several years, spurring an increase in coworking space in these markets. According to research from WalletHub in 2017, the fastest-growing cities in the United States are mid-sized, suburban cities like Frisco, TX, Kent, WA, Lehigh Acres, FL, Midland, TX, and McKinney, TX. Coworking operators who are looking to grow their footprint should look to suburban markets, where the highest growth is happening.

Economic growth is higher in the mid-sized market than in larger cities, making it clear there are professionals in these areas that need a space to work. Many of these individuals are likely commuting back and forth from the city to the suburbs and they will be attracted to the idea of being able to work right in their backyard at a coworking hub.

Blending Shared Office Space Into a Community

As a coworking operator, one should research and understand the community and neighborhood that the space will be catering to. Finding out the types of services people within the suburban mark needs and the prices they are willing to pay for them will be important to an operators success.

For example, Serendipity Labs is one of the several coworking companies that have spread outside of the urban core. They have opened up locations in places like Aventura, Florida and Ridgewood, and New Jersey near transportation hubs or major interstates and catered their pricing and amenities to attract these suburban markets. Serendipity Labs’ CEO John Arenas believes that coworking will become part of work culture everywhere and that suburban coworking will be a new normal.

The Appeal of Remote Offices for Larger Companies and Corporations

Suburban coworking spaces are a boon to corporations that need space for satellite offices or offsite teams, but they also might be more diverse in regard to age, industry, and gender in comparison to the urban counterparts. Suburban coworking spaces will thrive simply because they offer professionals the flexibility of going home in the middle of the day if needed and being close to their children.

National commercial broker CBRE recently released a study statistically showing that although millennials enjoy living in urban areas they overwhelmingly move out to the suburbs when they have children. The study also suggested that given many millennials have never worked anywhere but a coworking type environment they will want similar work environments in their new communities

Coworking In Suburban Areas Will Continue to Trend All Over the World

This idea of expanding coworking space into the suburbs is not just a national trend, but an international trend too. CMPNY, a leading coworking company in Canada, has locations exclusively in suburbs as opposed to Vancouver’s downtown core. Darryl Bosa, Founder of CMPNY, said, “Commuters desire office space that is local, easily accessible and gives them a sense of pride every day. Families living in the suburbs expect all the amenities of living downtown; walkable neighborhoods, entertainment, schools, and parks. They also want coworking spaces where small businesses can thrive, where freelancers and remote workers can feed off of each other’s energy, stay focused and gritty … accelerating their achievements.”

As the suburbs continue to boom in population and mixed-use developments continue to pop up in these areas, expect to see coworking operators expanding into these markets. Commercial real estate firm JLL projects that by 2030, flexible space will account for 30 percent of the total corporate real estate portfolios, meaning there will be the need to expand into suburban markets.

Top Tier Coworking Environment

SharedSpace, is a regional coworking business focused on creating modern, professional, and energetic work environments to stimulate the creativity and productivity of entrepreneurial businesses and their teams! Please don’t hesitate to reach out if your business is looking for creative opportunities to reinvigorate your workforce and brand with a modern coworking environment like SharedSpace.

Book a Free Day

Select a Location····Pick a Time

Dunwoody

4470 Chamblee Dunwoody Rd, Suite 510 Atlanta, GA 30338

Cobb

2430 Herodian Way Atlanta, GA 30080

Augusta

901 Greene St, Augusta, GA 30901