Coast to coast, bustling retail meccas used to embody a decidedly American pastime: shop till you drop. But empty storefronts across the U.S. have cropped up in places that go far beyond the “retail apocalypse” that has battered suburban malls — and some municipalities are fed up. From retail corridors nestled in some of New York’s trendiest neighborhoods to wealthy bedroom communities just outside of Boston, vacancy signage is becoming more common than glitzy placards announcing a big sale.
Before you go to bed tonight, another 15,000 sf of coworking space will have opened in the U.S. More than 5 msf of it came online in each of the past three years.
This incredible pace of growth continued in the first half of 2018 with another 3 msf added. Cushman & Wakefield’s Coworking and Flexible Office Space report explores the benefits, risks, and future opportunities in the world of flexible office space.
• Investors are comfortable with a coworking space ratio of 15-30% of a building.
• This ratio is increasingly perceived as a strategic necessity by landlords and investors.
• Coworking is well-positioned to weather an economic downturn.
• Flexible office space will triple in size—representing 5-10% of office inventory in many markets.
• Coworking demand is strong, but only 20-30% is additive.
CLICK HERE FOR PDF
CLICK HERE FOR eBOOK
CLICK HERE FOR CHARTS
While the real impact to commercial real estate is more than 10 years away for many technologies, disruption in the near term will be generated from a few—namely ridesharing, autonomous mobile robotics for eCommerce fulfillment, and electric vehicles.
CRE players will need to focus on flexibility and efficiencies to adapt to changing paradigms brought on by technology advances. Assets positioned to evolve along with technological changes will outperform others that do not keep pace. However, such flexibility may be more costly.
First in a four-part series, Will Robots Take Over CRE? explores technologies that have the most potential impact to disrupt CRE.
CLICK HERE TO DOWNLOAD THE REPORT
CLICK HERE TO DOWNLOAD CHARTS