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.

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Savanna Jimenez

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