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Co-working and Corporate real estate - The Merge

Commercial Real Estate (CRE) is becoming a luxury as time moves forward. There are various companies and organisations that move offices every 2-3 years. Long Term Leases do not make sense anymore when such are the dynamics of commercial real estate. Companies look for faster and more flexible solutions and the co-working segment has learnt to adapt to these needs and would follow on, hence creating and on demand products for such companies.



Traditional Offices being an integral segment of the CRE, have not changed for years, but they have just undergone a minor disruption with the penetration of co-working spaces in the commercial segment of the real estate market. Employees as well as Employers want freedom and flexibility in the way they work. This way of flexibility may be the future norm of every workspace, whether co-working or not.

With this being the future, Co-Working providers are adapting to and providing work culture that is in sync with the ever changing trend. Various co-working providers tweak their space in the form of upgrades to improve the flexibility and accessibility to accommodate the needs of their members. Coworking Spaces are now playing the key role of bridging the gap between demand and supply of the CRE industry through well-equipped plug & play setups along with all the necessary amenities required for any business to move in without any wastage of time or investment into resources. Long distances, congested urban commute and increased amount of time spent to travel to a workplace, higher operating expenses and the challenges of retaining the top talent of the industry have led to a vast increase in the number of people telecommuting and working remotely or from locations of their choice. Startups, freelancers and entrepreneurs have begun moving into previously-out-of-bound and swanky offices, thanks to the coworking industry.


Co-Working is the major factor driving a change in the traditional commercial real estate market. Landlords are embracing some of the co-working trends in terms of shared and flexible workspaces. Spaces are being reimagined and redesigned like never before.

Important to the CRE industry is the fact that Coworking is likely to withstand any major economic downfalls. Many large corporations had faced downfalls and the need to downsize when the recession hit several years back, which aided the initial growth of Coworking. So now, booming with members, shared spaces are even denser than the average office space.


CRE investors aren’t in this industry for the sense of community. As we know, Coworking thrives off of it. In the big picture, this shift in the CRE landscape will lend more to making a profit over building community. This could really become a hand in hand relationship between these two industries, with the evidence that CRE leaders are leaning toward Coworking.


Co-working can lead to mutually beneficial establishments by following the norm of a shared economy. If envisioned well, co-working will become that segment of real estate where people could live, work & socialize as per their will.


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