Report: Two-Thirds of CRE Companies Use Some Type Of Coworking

Two-thirds of commercial real estate companies are using some type of coworking product, and many of them plan to expand their usage, Cushman & Wakefield said in a new report. 

The report, which is based on Cushman & Wakefield and CoreNet Global interviews with 550 commercial real estate executives, says coworking is beyond an emerging office asset class and more or less a strategic play that CRE firms must invest in.  

Not only do two-thirds of the firms interviewed use coworking, the respondents expect their coworking commitments to grow over the next five years.

The median company featured in the survey has at least 3% of its employee base using coworking on a regular basis. 

“The results show that corporate leaders have a generally positive view of coworking and see flexible space as a growing part of their occupancy strategy,” Cushman & Wakefield Americas Head of Occupier Research David Smith said in a statement.

“The percentage of employees with access to flex space is on the rise, and companies increasingly see this as part of a broader solution.”

Of the firms interviewed and using flexible office space, one-third gave flex space credit for creating cost savings of more than 5%. 

While executives remain bullish on coworking as a whole, 48% of those interviewed said coworking makes it more difficult for companies to create cohesive employee teams and work environments. 

Others expressed fears over digital security and concerns about falling employee engagement and efficiency when working in coworking concepts or more flexible spaces.