Property investing is thought as one of the finest methods to broaden a commercial property portfolio and gain larger wealth. If you would like to increase your earnings as a commercial realty investor, then investing in shared office space for rent might be a prosperous take in 2019.
A good coworking investment requires market research. You have to look for the correct area where co-working spaces are mainstream and can be a successful business entity on themselves. You likewise need to comprehend the interest and where your investment can have the most effect. Apart from these basic initial factors, you need to understand what other wonders can investing in a co-working space can do to your portfolio.
What do you need to look at before investing in a co-working space?
Before diving into a few of the advantages of a co-working space Investment, it is important to consider the buyers: self-employed and people who work remotely. Amazingly, there has been a considerable rise in the number of remote workers globally. More than 8 million people registered themselves as remote workers in the US, where the number has risen by 5% in 2017 alone.
Several studies have shown the advantages of working from home, such as a Gallup survey which revealed working-from-home choices lead to better organizational retention. The survey also reported that it is cheaper for businesses and startups, that working from home is good for employee productivity.
Having a homely environment at work is what everybody wants, and the majority of co-working spaces excel in this. With an office design and attractive layout that gives more importance to unhindered and comfortable working, it is able to attract remote workers, digital nomads and freelancers with ease. It is the same customer base that constitutes more than 60% of an average co-working’s membership.
Countless studies have revealed the benefits of working from home, including a Gallup poll that showed work-from-home options lead to greater retention. The poll also reported that it’s usually more affordable for startups and corporations alike, and working from home may also improve employee productivity.
The tendency towards working from home has been especially seen in certain types of employees. Managers, finance professionals, artists, and also, most importantly, computer programmers have observed substantial gains by managing their load from home. All these high-skill professionals are now in a position to negotiate to operate wherever they need, and they also use this leverage to their own benefit. This is where co-working spaces gain immensely, by attracting a larger chunk of these professionals in their community. By investing in a co-working space that thrives primarily because of its members, you will be on greener pastures.
High Demand for Co-working Spaces in Metros and Tier-II Cities
As the work-at-home population has increased, so has the demand for co working office space. Remote work is an amazing productivity booster for most employees, but sometimes it’s hard to be sequestered at home. There are also distractions from family and responsibilities that make it difficult to complete work. A co-working space can help resolve that problem.
Individuals with a laptop and mobile devices can operate from everywhere, but a good deal of individuals wish to visit co-working spaces in order that they may be motivated by others in different companies. Working together with motivated employees also helps to scrap loneliness. According to studies, approximately 45 percent of co-working members report the battle of isolation and the situations which makes it hard to finish work, while working in a traditional office space or even from a home office.
Is location an aspect that you should be looking at?
It is not just about investing in commercial property. Businesses have observed the worth of leasing offices situated in non-premium zones, amidst retail stores and restaurants and even remote locations by turning them into co-working spaces. So, location isn’t that important as long as the community consists of a varied membership.
However, just like many property investments, not all co-working investments are worth taking the risk. They’re definitely not for each marketplace. Some places are too small to maintain space. In reality, several markets have been still showing signs of decreasing since the market showed signs of a recession or levelling off. For new entrants in the realty investment business, looking into properties which are rented out by organizations is the right bet, as markets are poised to give good returns.
The key takeaway here is to go for prime locations if you want to make a co-working investment. Since, most of these co-working space is located in prime business zones of the city, making it easier for people to commute. Exponential growth in the market also indicates that the future of the co-working market is bright with an increase of 75% by the year 2030. So, if you to make a mark in the commercial property investment, you’re good to go with a possibility to thrive.