Traditional industries have seen a lot of disruption with the development of space sharing and coworking models. As these new flexible workspaces become more compatible with workspace needs, it also becomes easier to see the value and potential in this structural pivot in real estate. There are several models currently supported in this pivot, allowing a variety of disruptors to step into the space and create their own coworking and flex space ecosystem. The opportunity is right in front of us to enhance communities, around the world, with flexible space and lease options, on-site amenities, and individualized service.
Tishman Speyer decided to get into the business of coworking because it became obvious that the market was changing, and companies (independently of the size) were beginning to look at real estate differently. Demand has been on the rise for ready to use and carefully designed spaces, more flexible terms, and fully serviced options. We’ve known, for some time, that businesses are looking for exciting communities and global access to other locations as employee travel becomes more common and as their business grows, and Studio is our response to that demand. A workspace that supports fluctuations, in a tumultuous, accelerated, and fluctuating business ecosystem also supports the innovative advances the real estate industry is ready for. Even ZO, our comprehensive suite of wellness, lifestyle and corporate services to tenants, represents the pivots we see the market looking for.
With forty years experience in the commercial real estate space, we’ve made it our goal to remain active in the expansion opportunities ahead of us. Our most recent moves are a great indicator of our market forecasts for flexible spaces in real estate and we’re converting this opportunity into massive value. We launched Studio as a premium coworking offering and moved quickly to expand it’s elevated service and curated amenities across many major domestic and international markets. We currently have 6 live locations and are expanding to Brazil and Europe still this year Looking further ahead, we have plans to expand in locations we currently hold space, as well as planting new roots globally.
Ahead of Trends in Commercial Real Estate: Flexible space is Hot
Recent numbers and statistics represent a scenario where, by 2030, 13% of total US office space supply is flexible. That would represent approximately 600 million square feet. To avoid shortages, these statistics would require traditional leases to convert into flex space, a trend Tishman Speyer is currently ahead of. We are seeing flexible space grow in major markets at an accelerated rate, and this trend cannot be ignored. Further, this trend must be taken seriously, turned into data points, and studied for the long-term potential, along with the level of possible disruption for commercial real estate. While the fundamentals in real estate currently remain the center of attention for investments and sales, the accelerated adoption rate of flexible work space will become more and more relevant when factoring valuations and assets. We’ve seen great demand for flexible office space from our enterprise clients and prospective tenants and we understand the importance of agility and the need for companies of all sizes to be able to move quickly and scale as needed.