Will Coworking Space Grow by 25% At Retail Properties?
Panelists at ICSC RECon seem to think so and say that coworking is all about flexibility and agility and will continue to gain steam.
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LAS VEGAS—Coworking space is expected to grow by 25% per year at retail properties through 2023 and it’s no longer just for startups. That is according to panelists at ICSC RECon’s Coworking Craze panel Monday morning.
Moderator Amanda Murray, director of operations and strategy of flexible workplace solutions at Cushman & Wakefield, says coworking really is about flexibility, agility, health, wellness, technology and being able to utilize space you hadn’t been utilizing before. “There is a lot more than what meets the eye,” she said.
Preston Pesek, co-founder and CEO of Spacious, talks about the importance of activating dead retail spaces, or utilizing restaurant spaces before they are open. According to Pesek, coworking really has a broad stroke over a lot of different things and has evolved significantly. “We are focused on drop in work space and coworking is a different model.”
Jamie Hodari, co-founder and CEO of Industrious, says the company was created in 2012 for those two or four person companies before they got their own office space. “Now, things have significantly changed. Big companies are now coming to us and asking us to find them space where, say, we need 60 people to have a place in Ohio. Those groups aren’t signing those 15 year leases or they are going to do it with a flexible component.”
And for those who think coworking space is soon to be over, Hodari says it is really just starting. “It is just starting to evolve.”
On the topic of flexibility, GlobeSt.com also caught up with Tom Londres, CEO at Metro Commercial, on the topic of shrinking big boxes specifically and how they have the flexibility to seize adaptive use properties. Major players like Target, A.C. Moore, Lowe’s, Supermarkets, Kohl’s, etc., he says, have already found success and experienced rapid growth by shrinking their footprints. “I think this is a trend that’s here to stay as retailers find ways to capture new customers.”
We also talked about the trend of office space being added to a retail center with Taylor Alvey, Vestar VP of leasing. He tells GlobeSt.com that he is seeing much more activity with hotel and multifamily developments being added to our retail centers. “Landlords and retailers have been supportive of this idea because it brings customers to the center on a daily basis,” he says. “Additionally, most of Vestar’s properties have freeway visibility, providing a great benefit to hotel and multifamily owners.”
In order to meet the parking requirements, his company works with municipalities to help them understand that 4:1000 parking is adequate since rideshare programs have reduced the need for larger parking ratios. “Ultimately, at each of Vestar’s centers, we want to find ways to drive traffic. Adding a hotel or multifamily component has proven to be a successful strategy to accomplish our goals.” Another trend he is seeing is the creation of a makers market which offers a unique space for designers, artists, crafters, food experts, and vintage collectors a space to sell their independently produced goods all year.
Keep checking back for more in the coming week for wall-to-wall coverage surrounding the Las Vegas ICSC RECon show and overall trends in the retail market. Take a look below at stories you might have missed.