Dive Brief:
- According to a HOK WorkPlace practice report, in conjunction with the U.K. chapter of CoreNet Global, coworking is one of the most rapidly growing segments in the commercial real estate sector.
- Onsite and offsite coworking — which typically involve an independent working environment for freelance contractors or employees who work from home or outside the office — can boost productivity and innovation, as well as attract a more talented workforce and reduce real estate costs, the report found.
- Coworking environments comprise less than 1% of global office space, but HOK WorkPlace Director Kay Sargent said it is a trend that reflects employee enthusiasm for "choices, community and flexibility."
Dive Insight:
Millennials are major influencers of office design and will most likely factor into how companies address coworking in the years to come. This cohort has even altered the popular and ubiquitous open floor plan work environment because of the noise issue. An Oxford Economics survey found that 50% millennials who work in an open environment don't like the noise and wanted "uninterrupted work time." Other millennial-influenced office features include prewired Wi-Fi, game rooms, lounges and nap rooms.
In addition, a PricewaterhouseCoopers and Urban Land Institute report last October also predicted a move toward more coworking space in its annual "Emerging Trends in Real Estate" report for 2016, particularly for "knowledge workers," like lawyers and business consultants, in large U.S. markets.
Experts have also said that as millennials and younger workers enter the workforce straight from college, more of them are demanding different office environments that allow and encourage the flexibility and movability that they had during university. Younger employees also expect a strong sense of collaboration and integration of technology in their spaces.