One of the most interesting innovations to happen in the world of commercial real estate is the increasing adoption of coworking offices.
What are coworking offices, and are they set to become a more important part of the commercial real estate market?
Coworking spaces are shared offices that people such as entrepreneurs, freelancers, start-ups or small businesses can utilise instead of leasing a space only for themselves.
There are many benefits to using a coworking office. For one, they provide a great environment for people and teams in similar positions (working from home, online-only businesses etc.) to meet and work together. Working alone often isn't fun, and coworking spaces gives a chance to socialise and network.
They're also a cheaper option for those who want a physical office but don't have the budget or employees to lease one for their exclusive use.
Coworking spaces provide a lot of flexibility for teams that are unsure of their growth prospects early in their operations. Having room to expand without needing to make a commitment to a large office space can free up cash-flow for those important early months.
Finally, when a business is operating on a work-from-home basis, keeping a clear line between working and non-working time often becomes difficult. Having a coworking space available can help keep a healthier work-life balance in place.
Besides having benefits for the people who work in them, coworking spaces can also be a boon for their owners. Just like multi-tenant leases, coworking offices allow you to spread the source of your income over multiple people instead of just one. With a large office space and a single tenant, it only takes one person terminating the lease for you to lose a source of cash flow. With a coworking space, the risk of all your occupants leaving at once is much smaller and so it can be a more robust investment if steady income is important to your investment strategy.
If you manage your rental rates well and operate close to full occupancy, there is also the opportunity for your overall income to be higher than it would with just a single tenant.
For more information on buying or selling office space in Surfers Paradise, get in touch with the team at Ray White today.