Jamie Hodari is the CEO of Industrious, a coworking giant that just raised $80 million.
BY JAMIE HODARI
The coworking industry has seen unprecedented growth the past few years, enjoying rapid expansion across some of America’s most economically valuable cities. In fact, according to Deskmag, the number of coworking locations has also grown globally from 1,130 spaces in 2011 to 13,800 in 2017. With the rising prominence of the market, companies that take advantage of coworking have seen major benefits to their business—outsourced office management, seamless entry into new markets, gorgeous design, and well-maintained and flexible work environments.
While companies of all sizes — from start-ups to enterprises — are taking advantage of the coworking movement, there are other stakeholders that stand to benefit from the coworking boom—both landlords and property managers. Some of the most prominent landlords and property managers in the world have begun to invest in the coworking industry.
There are three specific and palpable reasons why:
Technology Innovation is Now a Built-In Expectation
The first significant advantage for landlords is the ability to provide its tenants with the latest technology and innovation that coworking offers. From virtual doormen and smart conference rooms, to meditation spaces and remote check-ins, there is a growing expectation that buildings offer access to the latest technological advances. With all of the other current challenges to maintaining a building, keeping up with shifts in innovation isn’t always the priority.
Those priorities may be changing. A growing number of workers want the benefits of technology integrated into their workspaces in order to operate more efficiently and provide more flexible work environments. In fact, a recent Dell and Intel study showed that globally, 57% of people expect to be working in a smart office within the next five years.
That’s where coworking comes in. The ability for a landlord to partner with a coworking platform allows them to work directly with an expert to keep their office building up-to-date on the technology front, lending to a higher competitive advantage.
Better Offices, Better Build-Outs, Higher Property Values
Gone are the days when a company could simply move desks and chairs into a space and call it an office. Contemporary interior design is a core consideration for any company looking to create a productive environment for its employees. More than that, it’s standard practice for landlords to increase building amenities in order to raise building value significantly.
As people spend more time at work, companies require space that is designed efficiently for many different personality types and work styles. That’s a big job for a property manager to take on. Through coworking, landlords can essentially outsource their interior design needs, giving their tenants beautiful spaces and amenities they may not have access to with a typical lease.
Plus, when a company grows and needs more office space, the first place they’re going to look is in the building they already occupy. If building management has a standard build out already in place, there is a greater likelihood the current tenant expands within the building, resulting in lower turnover and upgrade costs for landlords.