The high cost of renting offices in the U.S. will be a reason for the continued expansion of shared workspaces between now and 2022, based on an industry forecast.
Around 754,000 Americans will work in a shared office space next year. By 2022, that number will increase to more than 1 million. Property developers have responded to the strong demand by launching flexible spaces, while others have searched for the best office franchise opportunity to take advantage of the growing trend.
If you’re keen on buying an office franchise based on demand, consider New York and San Francisco as your possible locations. Coworking spaces in these cities are among the most expensive, according to CBRE. For instance, an average rental in San Francisco costs more than $73 per square foot.
By contrast, office rents in Albuquerque, New Mexico, are the most affordable in the country. The city’s average rents only cost $15.59 per square foot.
Industry figures from the first half of 2018 support the forecast growth of flexible offices. CBRE’s research showed that coworking spaces accounted for 4.4% of all office rentals during the same period. Startups are particularly keen on using this office setup since they pay lower fees while still being located at a prime business address.
On the other hand, established firms have chosen to use this office design to attract younger talents and stimulate their current employees. A coworking space can enhance a company’s image as well, one that elicits an impression of seamless collaboration and a culture of openness.
Companies aren’t just switching to a flexible office layout to save on rental fees but also to improve productivity through active engagement among employees. As more businesses move to an open-office design, how do you plan to take advantage of the increasing demand?