Should commercial landlords consider coworking spaces

It is predicted that coworking office spaces in Australian cities will double by 2021, according to The Urban Developer. Commercial property management is changing in response to the needs of smaller companies and start-ups who require flexibility with lease commitment and the amount of space they need.

If demand follows prediction, Gold Coast commercial landlords will need to consider how to adapt their spaces to suit the requirement for flexibility. It may be a good thing for landlords too, with tangible business benefits for both sides.

Why are coworking spaces popular?

There are a number of benefits of coworking spaces for business owners, namely flexibility. In an uncertain economic climate, being able to adjust running costs quickly and easily can make a substantial difference.

Advantages include:

• The option to change the number of workstations required, and therefore the number of staff or contractors on roll.
• The ability to adjust leasing arrangements with short notice, instead of waiting for the lease to expire.
• No long-term commitment in a difficult economic climate.
• Access to meeting rooms for client appointments.
• No capital investment.

Are landlords already changing their models?

Some landlords are making changes, believing that creating coworking spaces in their properties is an investment for the future. Companies taking advantage of coworking spaces now, can become traditional office tenants in the future when their business grows and they want to commit to their own environment. It's often much easier to expand within an existing space, keeping contact details, for example, largely the same, than to up sticks and move across the city to a building and landlord you are not used to. 

For the landlord, it's also a good way of utilising areas that are perhaps not so attractive to bigger companies, such as smaller spaces, or floors without an impressive city view. Businesses in need of flexible arrangements may not be so concerned with the details of the space.

It also allows more floor space to be allocated as rentable. Most coworking environments provide shared facilities such as kitchens and bathrooms. With less of the available space taken up with separate facilities for each tenant, more of the building is able to generate income.

Ray White Surfers Paradise know the Gold Coast commercial market inside out. Talk to our team today to discuss your commercial letting requirements.