The Coworking Revolution and the impact on real estate - Sophy Moffat, DTZ

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THE IMPACT OF

THE COWORKING

REVOLUTIONON THE REAL ESTATE

INDUSTRY

1

DTZ understands occupiers and our property

services meet their specific and ever-evolving

requirements both locally and globally.

2

Why is a company like DTZ interested in Coworking?

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These companies are searching for

hundreds of thousands of square

feet of office space

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Coworking providers are bridging the gap between what occupiers want and what ‘traditional’ landlords provide

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Traditional landlords only offer long leases and require guarantees

and company accounts

Incubators and accelerators focus on start-ups, and a high churn of occupiers

Corporate-style offices are not appealing to certain people and businesses

Coworking Spaces offer monthly membership

Coworking Spaces resemble trendy coffee shops more than corporate HQs

Coworking providers are targeted at an entire class of professionals

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Traditional landlords only offer long leases and require guarantees and

company accounts

Incubators and accelerators focus on start-ups, and a high churn of occupiers

Corporate-style offices are not appealing to certain people and

businesses

Coworking Spaces offer monthly membership

Coworking Spaces resemble trendy coffee shops more than corporate

HQs

Coworking providers are targeted at an entire class of professionals

8

Traditional landlords only offer long leases and require guarantees and

company accounts

Incubators and accelerators focus on start-ups, and a high churn of

occupiers

Corporate-style offices are not appealing to certain people and businesses

Coworking Spaces offer monthly membership

Coworking spaces resemble trendy coffee shops more than corporate HQs

Coworking providers are targeted at an entire class of professionals

9

“Rather than thinking of the office as a place primarily for

solitary activity, from which workers occasionally break out

to settings intended for social activity, many workers see

the office as a sociable setting from which private places

for concentration and confidentiality are occasionally

sought”.

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The rise of Coworking is a response to several trends that should support strong development in the future

Technology enablement

Generational change

Growth of small businesses and indy workers

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Technology enablement

Generational change

Growth of small businesses and indy workers

The rise of Coworking is a response to several trends that should support strong development in the future

12

Technology enablement

Generational change

Growth of small businesses and indy workers

The rise of Coworking is a response to several trends that should support strong development in the future

13

Technology enablement

Generational change

Growth of small businesses and indy workers

The rise of Coworking is a response to several trends that should support strong development in the future

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What do these trends mean for corporate organisations?

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The trends prompting the growth of Coworking are also prompting changes to

the traditional working styles of larger, corporate organisations. This is manifested in the adoption of Activity Based Working.

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Activity Based Working to design your

office in such a way that it supports work activities optimally, rather than drawing a boundary around its user’s personal spaces.

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“As competition for skills increases, and large corporations

start to compete directly with media and technology companies to attract young talent, they will

start to invest significantly in their workplaces and workplace

technology. They will offer better work environments and more flexibility in the same way the

technology industry has done in the past ten years.”

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Organisations believe by adopting smarter and more agile methods of work they will greater satisfy and motivate their

staff which will aid retention and attraction, but also offer productivity gains and reduced spatial requirements.

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Macquarie’s Banking and Financial Services Group (BFS)

55% of employees change their workspaces each day.

77% are in favour of the freedom to do so.

90% employee satisfaction.

Nothing spent on moving groups and redefining spaces.

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Deutsche Bank

10-30% reduced occupancy costs due to reduction in spatial requirements.

Recouping of associated project costs within only 24 months.

Improved employee productivity at work.

Improved technology in the workplace.

Ability to increase employee populations without additional real estate

expenses.

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Tokyo

LondonWashington

Vornado RealtyPartnering with WeWork to redevelop office building in Washington into residential apartments for mobile and

collaborative workers.

British LandPartnering with Regus to offer Third Place business hubs at retail properties

across the UK.

The ShareOffer accommodation to

young professionals in single buildings containing apartments, shared office

space, shops and social areas

New Coworking ventures globally

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Tokyo

LondonWashington

Vornado RealtyPartnering with WeWork to redevelop office building in Washington into residential apartments for mobile and

collaborative workers.

British LandPartnering with Regus to offer Third Place business hubs at retail properties

across the UK.

The ShareOffer accommodation to

young professionals in single buildings containing apartments, shared office

space, shops and social areas

New Coworking ventures globally

23

Tokyo

LondonWashington

Vornado RealtyPartnering with WeWork to redevelop office building in Washington into residential apartments for mobile and

collaborative workers.

British LandPartnering with Regus to offer Third Place business hubs at retail properties

across the UK.

The ShareOffer accommodation to

young professionals in single buildings containing apartments, shared office

space, shops and social areas

New Coworking ventures globally

25

TECHNOLOGY ENABLEMENT & GENERATIONAL CHANGE

INCREASE IN FLEXIBLE, COLLABORATIVE, EFFICIENT & REMOTE WORKING

CHANGES TO THE WAY WE ALL WORK

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TECHNOLOGY ENABLEMENT & GENERATIONAL CHANGE

INCREASE IN FLEXIBLE, COLLABORATIVE, EFFICIENT & REMOTE WORKING

CHANGES TO THE WAY WE ALL WORK

27

TECHNOLOGY ENABLEMENT & GENERATIONAL CHANGE

INCREASE IN FLEXIBLE, COLLABORATIVE, EFFICIENT & REMOTE WORKING

CHANGES TO THE WAY WE ALL WORK

28

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