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Expenses Getting to Office Occupiers

May 02, 2017 | John Salustri

It seems that more than ever, costs are putting the squeeze on occupiers of office space. According to a GlobeSt.com report, “The latest survey of corporate real estate professionals conducted by CoreNet Global and Cushman & Wakefield finds that they’re ‘more concerned about property costs than ever before. More than 90% of them find total property costs an important consideration in decision-making.’ ”

As a result of the pinch they’re feeling, says writer Paul Bubny, most of the respondents to the survey intend to stay put rather than deal with rising relocation costs. Rather, an option for many is becoming shared workspaces, such as WeWork.

“The report finds that demand for coworking spaces is growing at an average of 10% to 15% per annum across all regions as corporate cultures embrace the concepts of shared workspaces and collaboration,” Bubny writes. “In Washington, DC, for example, the amount of coworking space has doubled over the past five to six years.”

Beyond the opportunity to experiment with the benefits of shared workspace, the reasons behind the move are clear. Some 73% of all respondents “are carefully planning for headcount growth.”

“Coworking practices are gaining momentum,” said Sigrid G. Zialcita, managing director, research & investment strategy, Asia Pacific at Cushman & Wakefield in the article. “It is fast becoming a part of the corporate culture at many organizations.”

That’s right. Asia. Shared spaces are indeed becoming a global phenomenon. “Last year alone, coworking operators leased about five million square feet in Asia Pacific,” the report states. “The size of coworking stock is estimated to be highest, in the range of 40 million square feet, in the US, followed by Europe with 20 million square feet and Asia Pacific with 10 million.”

What’s more, developers are getting into the act, says the report, “incorporating flexible working environments into building design.”

Read the full article at GlobeSt.com.

About the Author
John Salustri is editor-in-chief of Salustri Content Solutions, Inc., a consultancy focused on enhancing the web and print content of clients around the nation. He is a regular contributor to JPM Magazine and a frequent blogger for IREM’s website. Prior to launching SCS, John was founding editor of GlobeSt.com, the industry’s premier real estate news website, where he managed the daily output of 25 international reporters, and prior to that, he was editor of Real Estate Forum Magazine. John is a four-time winner of the National Association of Real Estate Editors’ Award for Excellence in Journalism.

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