Corporate Real Estate Managers Embrace Coworking

CoreNet Global The Pulse Blog Search Corporate Real Estate Managers Embrace CoworkingNovember 1, 2017|In CoreNet Global News|By David Harrison Coworking, the style of work marked by open shared spaces among workers of different companies and popularized by “solopreneurs” and tech workers, is quickly being embraced by those who manage real estate needs for large corporations. The trend is explored in a new whitepaper, The Evolution of Co-working and Impact on CRE, released by CoreNet Global, the association for corporate real estate professionals. According to the new whitepaper, large corporations including Microsoft, GE, Salesforce, HSBC and Nasdaq are examples of those utilizing coworking spaces. Microsoft recently turned to WeWork, a provider of coworking space, for nearly 300 salespeople in New York City. Those salespeople were based outside of Microsoft’s New York City’s offices and traveling to meet with clients. Microsoft’s arrangement allows them to use the facilities as needed. “When we talk to our businesses, their crystal ball is reasonably clear for three months, it starts getting cloudy in six months, and it is harder to forecast what the business will look like in five to seven years,” says Kevin Sauer, workplace strategy leader at GE. “So, from a traditional corporate real estate model, we’re sandbagging the business by signing them up for a long-term lease in space that may or may not suit their business needs after move-in.” The whitepaper lists additional examples.  About 10% of Silicon Valley Bank’s 2,500-person workforce of bankers and consultants use co-working space on either a part- or full-time basis. However, the bank has learned that there are some challenges to the new format. “Eventually, you don’t get the market presence that you really need to thrive in the banking industry,” says Tom Suro, MCR.w, workplace creation program director, Global Real Estate & Workplace Services at Silicon Valley Bank. “There are some markets where if you are in a co-working facility it is actually difficult to gather clients, because you don’t have a permanent office. You’re seen as a ‘here today gone tomorrow’ kind of situation.” Still, co-working is driving change in the traditional commercial real estate market. Landlords are embracing some of the same co-working trends in terms of shared spaces and an active, social environment. Lobbies are being redesigned from places that people walk through to get to the elevator bank to a place where people can come and have a cup of coffee with their laptop or meet with colleagues. Landlords also are creating more shared conference rooms and training rooms that allow tenants to reserve those spaces rather than building them into their own footprints. While the specific applications are still unknown, experts say there is strong growth trajectory for co-working space and it appears that co-working is a viable alternative for traditional real estate. “We now have five generations in the workplace. One of the ways to address that is you have to provide variety and choice in the work settings,” said GE’s Sauer. Companies must think about the type of space they are providing, both within their own corporate footprint, as well as outside alternatives in order to attract fresh young talent, as well as retain existing talent, he adds. Add comment Cancel reply Comment Name * Email * Website PrevMain BlogNext ABOUT US CoreNet Global is the world’s leading association for corporate real estate (CRE) and workplace professionals, service providers and economic developers. With almost 10,000 members, including 70% of the Fortune 100 and nearly half of the Forbes Global 2000, meet locally, globally and virtually to develop networks, share knowledge, learn and thrive professionally. For more information visit our website at www.corenetglobal.org. CONTACT US CoreNet Global, Inc. 133 Peachtree St. NE Suite 3000 Atlanta, GA 30303 www.corenetglobal.org Phone: +1 404.589.3200 Toll Free in the USA: +1 800.726.8111 Email: corenetglobal@corenetglobal.org Fax: +1 404.589.3201 CategoriesCategories Select Category Amsterdam Awards Big Data CoreNet Global News Economy Education Events General Sessions Global Trends London London 2015 Los Angeles 2015 Membership Networking Philadelphia Seattle Speakers Summits Technology wellness Workplace Young Leaders Archives Archives Select Month November 2017 October 2017 September 2017 August 2017 July 2017 June 2017 May 2017 April 2017 March 2017 February 2017 January 2017 December 2016 November 2016 October 2016 September 2016 August 2016 July 2016 June 2016 May 2016 April 2016 March 2016 February 2016 December 2015 October 2015 September 2015 July 2015 June 2015 March 2015 February 2015 January 2015 December 2014 July 2014 May 2014 April 2014 2017 CoreNet Global All rights reserved Social Media Auto Publish Powered By: XYZScripts.com