How Coworking Spaces Can Impact the Real Estate Industry?

Coworking spaces. An industry that had unfolded over the past 10 years and has now turned into a mainstream trend throughout society. The growing popularity of coworking spaces has grown due to urban regeneration, where individuals have relocated from the suburbs and countryside to live within the hustle and bustle of the city.

Additionally the surge in the technological industry has lead to the increase in creative innovation and use of increasing startup businesses around the world. Due to these two factors of the urban regeneration and the technological industry, it has resulted in many opting to work in flexible workspaces rather than traditional fixated offices.

Now with this influx towards businesses choosing coworking spaces, it has began to disrupt industries that involve the rental of time, equipment and space, in particular the real estate market through the following reasons:


Firstly, innovation has never been such as fashionable topic before, with the introduction of new and unique startup businesses such as GO-JEK and Tokopedia, coworking spaces can act as a great way for entrepreneurs to be placed into a space with like-minded individuals that can provide knowledge and experiences amongst each other.


This trend in coworking spaces has benefitted banks and financial institutions as coworking spaces are renowned to be a safe investment due to its high diversification of tenants. The reason for this is because traditional offices that only accommodate for one business may struggle to gain a return, whilst coworking spaces do not rely on one specific market of consumers for their successes.


Realtors are impacted as many have commission deals with coworking spaces. However, on the other hand realtors are motivated by the connections with freelancers, startups and young enterprises hoping to capitalize on the expansion of the business.


As more of the workforce shift from corporate to freelancing, more people will drift towards the services that coworking spaces offer. With the benefits entailed, who is to say that entrepreneurs will want type of office down the line? Real estate developers have been paying attention to this model to gain an advantage. By offering more flexible spaces with a unique coworking-style office infrastructure, new buildings can rely on the success of coworking spaces. This way, businesses transitioning from flatter structures through coworking spaces to “traditional” offices will be satisfied and more willing to stick around.

Read More: 5 Things You Probably Didn’t Know about Coworking Spaces

With the impact of coworking spaces expanding significantly, it will significantly impact the real estate industry in multiple ways! So keep an eye out for the expansion of more coworking spaces around you!

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