Commercial Property Consultants , and SharedSpace , a coworking business . Prior to the pandemic , SharedSpace operated in three locations in Georgia . “ Quite frankly , we were struggling ,” says Levison . The coworking facilities , each roughly 12,000 sf , were competing for users amid a proliferation of third-party facilities while trying to balance the costs associated with the amenities and freebies that users had come to expect .
SharedSpace closed its location in Augusta , Ga ., following the onset of the
Special Amenities Available in Workplaces
100 %
80 %
60 %
40 %
20 %
0 %
100 %
80 %
60 %
40 %
20 %
0 %
Headquarters
Source : CBRE Global Occupancy Insights 2021 Note : Based on 48 respondents .
COWORKING ' S NEXT ACT
pandemic to help conserve capital as demand from users plummeted . However , the start of 2021 brought an explosion of activity at its two remaining locations . For example , occupancy at its Dunwoody location jumped from 15 percent to 90 percent , and the company reopened its Augusta location in fall 2021 .
Non-Headquarters
Meeting Food Health & Wellness
Training Rooms / Center Multipurpose Space
Executive Briefing Center Community / Public Spaces
Design Rooms Auditorium Cafeteria / Café
Coffee Shop
Microkitchen Restaurant ( s ) Take-Home Meals
Free Meals
Convenience
Fitness Center Prayer Room
Health / Medical Clinic Meditation / Therapy Room
Outdoor Spaces Bike Path
Nap Pods
Parking Lockers / Showers
Tech Help Desk Outdoor Balcony
Electric Vehicle Charging Bank / Credit Union
Game Room Bicycles or Scooters
Company Store Pop-Up Shop / Retail
Library Convenience Store
Laundry
Salon / Spa Daycare Safe Room
Teaching Kitchen Pets Allowed
Music Room
The pandemic also has changed the business model for SharedSpace and helped to improve its profitability . It has cut out many of the extras that had become the norm in coworking spaces , like nap rooms and free beer , wine , and snacks . Going forward , the simplified business model focuses on what people want and need , which is flexible office space with high-speed , reliable internet , notes Levison . SharedSpace has also eliminated its one-day drop-ins and now has a minimum three-month membership requirement , which also allowed SharedSpace to reduce on-site staff .
EMBRACING COWORKING AMID COVID-19 Coworking facilities are attracting both returning users and newcomers . “ There is a good segment of the population that used coworking before the pandemic that is going back to it ,” says Michael Marsh , CCIM , JD , MBA , an associate vice president at Colliers International in Phoenix . There also is a growing segment of users that is turning to coworking as a bit of a stop-gap measure . Perhaps they didn ’ t sign a lease renewal because of COVID-19 and now need a quick , turnkey space option . New groups are also entering the market that are hesitant to make a long-term lease commitment in case of more disruption ahead . “ The flexibility comes at a cost , but there is some value for groups that want to be more flexible in case COVID-19 starts impacting things again ,” says Marsh .
Nearly two years into the pandemic , demand also is coming from people who want or need to get out of their homes for a variety of reasons , whether it is lack of adequate workspace , poor internet connectivity , or noise and distractions — or that they simply need more interaction with others . According to JLL ’ s 2021 Shaping Human Experience report , 66 percent of workers want the ability to alternate between different places of work post-pandemic . Of those surveyed , 40 percent would like the option to work from a third-party place , such as a coffee shop or a coworking space .
Most SharedSpace members are entrepreneurs and small businesses who want and need professional workspace and reliable internet . Some businesses are looking for satellite locations to give employees living in the suburbs an alternative workplace or meeting option for teams without having to come to the main office , especially if their main office is in a large urban area .
“ I don ’ t think any of us truly know how this pandemic is going to affect the office environment with companies taking more or less square footage ,” says Levison . “ But we are seeing more larger companies taking space , which we think is primarily because of this hub-and-spoke concept .”
Previous spread , photo by Yakobchuk Olena
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COMMERCIAL INVESTMENT REAL ESTATE MAGAZINE WINTER 2022