Only about a quarter of office space throughout the United States, including New York, is used for flexible workspace options, such as co-working. However, research shows that more than a quarter of brand-new commercial real estate leases signed during the past couple of years were associated with this growing business area. This has left many real estate brokers questioning why more investors are not taking advantage of this in-demand area.
The current economy is considered a sharing economy. In other words, business owners are more serious than ever before about being more efficient with the spaces their staff members occupy. In addition, they are attempting to cut rental costs by sharing spaces with others.
The future of the commercial real estate industry remains unknown. After all, retail appears to be dying, while the demand for warehouse spaces appears to be on the rise. However, allowing properties to simply sit will not help the outcome, so in many investors’ minds, the best move is to purchase property and promote them for use as flexible workspaces.
Purchasing commercial real estate and leasing them for co-working purposes or other business purposes can understandably be an exhilarating endeavor. However, it can also be confusing and intimidating, particularly for an investor who has never been through the process before. Unfortunately, a seemingly small mistake may end up costing the investor money or even costing him or her the deal altogether. An attorney in New York can provide investors with the guidance they need to successfully seal their commercial real estate deals in the Big Apple.
Source: reuters.com, “Cracking the co-working code in commercial real estate“, Herbert Lash, March 19, 2018