Coworking facilities are often associated with startup businesses, letting them establish themselves without the expense and obligation of a first lease arrangement.
Savills — which has its own coworking space listing operation — argues in a blog post that the approach to real estate is something that works effectively within even a mature corporation’s strategies. Coworking can allow a rapid and convenient expansion.
For many reasons, a more established company would entertain the use of flex space rather than traditional longer-term leases. One is flexible leasing terms and the minimization of risk. Shorter lease terms and scalable options allow balancing cost, benefits, and timing. Shorter terms and scalable options are tools to battle uncertainty.
Coworking space is typically available within a short amount of time — often days, possibly even as quickly as a single day. There is no wait for a space build out, particularly if the need is for a finite amount of time, after which the expectation is to close the facility. A company can establish a presence without over-commitment. The business can leverage capabilities on larger or smaller scales, ensuring that employees who are traveling or working remotely have the resources they need to be successful. The strategy can also support satellite offices.
Quick access to coworking space can act as a real estate equivalent of a backup generator. That can be useful during an operational emergency or an unusual event. The space will typically have such amenities as meeting rooms, common areas, and workstations for greater productivity without the need for additional build outs.
Because coworking spaces are scalable, they also help support ESG goals through optimized space utilization and cutting wasted space, meaning less energy use and utility cost. There are coworking spaces with green certifications or shared infrastructure that reduce a company’s carbon footprint. The adoption of flexible workspaces displays a company’s adaptability and risk management, which can help communicate ESG commitment to regulators and investors.