One of the biggest trends in office space marketing is the co-working or shared space concept, offering a flexible menu of space and services in an established office environment. These spaces are typically leased in bulk, generally to a marketer who designs and builds it out. The goal is to offer a professional setting tailored to meet the exact desires of their targeted clientele.
While pricing for the selected space and services is often a bargain for a small tenant with limited needs, it is higher in the aggregate for the bulk space if the concept achieves good occupancy.
Achieving good occupancy is a business related effort: smart design, management, and marketing skills must be leveraged in order to create margin for the shared space operator.
But is that higher pricing reflective of the real estate? No!
The answer will remain “no” until the shared space design is indelibly woven into purpose built construction and this trend becomes an established niche in office development and management. This means we use the bulk lease rates to value these properties for now, but stay tuned – this trend is growing fast!