Jul 17

Commercial Giant Still Betting on Coworking Growth

Commercial Giant Still Betting on Coworking Growth

While the flexible office space market known as coworking had already started to slow prior to the pandemic, concerns over the spread of germs and related issues leave some housing analysts concerned whether coworking spaces can survive.

But commercial giant JLL is still bullish on the sector. In a new report, The Impact of COVID-19 on Flexible Space, JLL notes that coworking space may be the alternative that companies seek in the post-COVID-19 world to shrink their office footprints for a more flexible option.

“Despite the current distress within the coworking sector, we’re reiterating our position that office space will be fundamentally different in the future, as companies shift away from the long-term leased and owned space to more agile solutions,” Scott Homa, JLL’s senior director of office research, told Commercial Property Executive. “COVID-19 will accelerate a movement toward asset-light workplaces, where work-from-home and remote work blends seamlessly with the corporate office. Even with some coworking operators shrinking their footprints, we still believe 30 percent of office space will be consumed flexibly by 2030.”

The coworking market can include on-demand workspaces, memberships for some locations, short-term flexible spaces, and more traditional spaces with flexible arrangements.

JLL believes that flex-space operators that offer a hybrid model including long-term leases, private office space, and coworking options will be the most likely to weather any downturn. Also, flex-space operators will need to be prepared to adjust their workspaces. Tenants may be drawn to flex spaces as options to serve as smaller satellite offices.

Still, the sector likely will face headwinds. “Owners will have a growing challenge on their hands in the months ahead, as venture-funded coworking companies continue to default on rent payments in some locations,” Homa told Commercial Property Executive. “This will force important decisions among landlords about how to respond and spur continued evolution of the flexible space sector, most notably in the financial structure of deals—fewer long-term leases and more revenue-share/management agreements.”

Source:
“Coworking Outlook Positive, JLL Finds,” Commercial Property Executive (July 14, 2020) and “What the Future Holds for Flexible Space in a Fast-Paced World Affected by the Pandemic,” JLL (2020)
©National Association of REALTORS®
Reprinted with permission

admin

For all of your Real Estate needs, place yourself in the competent hands of a career Realtor who is a Philadelphia native and Delaware County resident. Skilled, smart and enthusiastic about his work and his life, Anthony DiDonato has the appealing combination of business sense and people skills gives him an edge in an industry that demands both.

Educated at Drexel University with a dual major in accounting and finance and minors in management and psychology Anthony DiDonato offers over 25 years of experience in the real estate industry. He has been a real estate investor since 1985 and a member of H.A.P.C.O. (Landlord Association). He became a licensed Realtor in 1992 and a member of the Local, Pennsylvania and National Associations of Realtors. Anthony DiDonato is also a member of the Computerized Multiple Listings, (MLS) and Internet Marketing Programs. In 1997 Anthony DiDonato became Century 21 All-Elite, Inc. Corporate Secretary.

Anthony DiDonato believes in taking his profession to the highest level of quality service. He is known for finding that “perfect” property in Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania for his buyers and helping his sellers prepare their properties so they sell quickly and efficiently.

When it comes time to negotiate the terms of a contract, Anthony DiDonato has the knowledge, experience, and professionalism applied to meeting – or exceeding – his clients’ expectations. His service to his clients is second to none. His honesty and integrity have been his claim to fame.

For Superior Real Estate Representation in the Delaware Valley, Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania… call Anthony DiDonato.