Start-Ups Are Staying at Co-Working Spaces

David Freitag is a broker in CBRE’s occupier services group.

LOS ANGELES—Co-working spaces are becoming a major competitor for office tenants. An evolution of executive suites, co-working spaces are no longer short-term alternatives to leasing direct space for start-ups. The shared-office environment is becoming ubiquitous for small tech and creative companies, and according to a new case study from CBRE, it can also be more cost effective than leasing a direct office space.

“Co-working is not just something that you are going to do for six months until you grow out of it,” David Freitag, a broker in CBRE’s occupier services group, tells GlobeSt.com. “Companies now have the ability to further expand within the co-working space before they have to go lease direct space and encounter a large up front capital cost. This shift has taken place over the past year to year-and-a-half.”