Recently, an all-women co-working space opened up in Buckhead. There are several more co-working spaces popping up all over Atlanta and the surrounding cities. Harvard Business Review’s researchers discovered that people who belong to co-working spaces are thriving at an unprecedented rate, on average they score a 6 on a 7 point scale. This is at least a full point higher than the average for employees who work in a traditional office environment. A flexible work/life balance is imperative to the millennial generation and co-working venues are one of the most effective workspaces to make that happen.
So what exactly is a co-working space, and who is using them?
A co-working space is a shared office space intended for freelancers, small businesses, and start-ups as an alternative to the isolation of working in home offices and coffee shops. Co-working venues often offer shared office spaces, conference rooms, and other meeting spaces similar to what one may find in a traditional office environment. The inherent design allows for free form collaboration and networking among the space’s occupants. As more and more jobs move to telecommute and virtual remote access, people are searching for a comfortable place to get their work done.
The rising popularity of co-working is attributed to the increasing demand of the millennial generation as it allows a perfect balance between work, play, and entertainment in one location. Workplaces of the future are more than an office. They can offer a working space, a communal break area, a coffee shop, a kindergarten, and even a gym. Co-working spaces are flexible, they are attractive, and the inherently collaborative environment can boost creativity. This is what millennials are looking for in their working environments. They value money and the freedom it gives, and they cherish when work and leisure can be combined.
What does this mean for the future of commercial real estate in Fulton County?
As with any commercial real estate transaction, the most important thing is location, location, location. With the redevelopment of Sandy Springs’ downtown area last year, now is the perfect time to open a co-working space in northern Fulton county. Sandy Springs’ new restaurants, performing arts center, apartments, and beautiful lush greenway are the perfect setting for the kind of balanced work/life environment companies of today are looking for.
The time of decade long leases being the only way to generate income from commercial real estate is coming to a close. Shorter, more flexible leases on collaborative workspaces are quickly becoming the norm is major markets all over the world. For example, WeWork, an American commercial real estate company that provides shared workspaces for technology startups and services for other enterprises, has become the largest occupier of office space in London, New York City, Chicago, and Washington D.C.
What do you need to know to get in on this fascinating, lucrative trend?
Co-working spaces can yield between two and three times more revenue per square foot than traditional workspaces generally produce. Plus, landlords can utilize vacant, smaller premises to startups who may think of larger commitments as high-risk. When these young companies develop and expand, landlords can expect to reap the rewards because as they grow and require more space, the unique features of a well-established co-working venue can encourage them to stay rather than move on. Co-working venues are establishing productive relationships between landlords and tenants earlier than ever before – flexible workspaces are changing the commercial real estate game for ambitious new companies, and real estate investors alike.
Potential revenue does not stop at sharing the workspace. Landlords can divide the costs associated with electricity, security, the Internet, etc.between all of the tenants of a co-working space. This works beneficially for all parties involved because compared to renting a regular office, a coworking space offers a cheaper alternative to traditional offices for freelancers and companies. At the same time, business operators overall earn more on facilities management service despite charging a low cost per client.
Commercial Real Estate In Sandy Springs
As the co-working movement pushes ahead, more and more commercial real estate investors are looking to get in on the ground floor. Co-working venues are the incredibly lucrative future of northern Fulton county’s commercial real estate scene, and the best way to get started is by meeting with a trusted and respected local real estate law team, like The Law Offices of Sam Maguire Jr. P.C. Contact us today to get started and we can help you with all your business law service needs whether you work at a co-working space or want to buy and own a co-working space. We have you covered!