The coworking revolution is transforming real estate. Pioneered by start-ups, entrepreneurs and freelancers, a growing number of companies, large and small, are exploring how to incorporate the concept. Coworking and liquid or flexible space are fast becoming critical components of wider Corporate Real Estate (CRE) and portfolio strategy.
In Phoenix, we have seen moderate coworking activity with a few, small operators but the game may soon change as two major coworking operators, WeWork and TechSpace, are looking to establish a presence in the market. These two operators are well-known and well capitalized, which will allow them to provide coworking tenants with the necessities to be successful. These include office options with wide, expansive floor plates, strong infrastructure and good environments with a mix of social and professional aspects.
To date, no coworking operator in Phoenix has been able to provide big blocks of space for tenants to grow into, and that is what we need for the types of tenants in our market. Beyond the traditional start-ups who like coworking space for cost-saving and resource aspects, Phoenix experiences a lot of established out-of-market companies using coworking space as testing grounds for opening additional operation offices in our market. Sending a few employees to work here allows companies to feel out our labor market and the overall business environment Phoenix offers. Should WeWork and TechSpace open operations here, the opportunities for these companies would expand greatly. These operators would become natural tenant feeders into our market.
Click here to read more about the evolution of coworking space in JLL’s Coworking Report.
About the author
Ryan Bartos is an Executive Vice President in the JLL Phoenix office who specializes in representing tenants in office leasing transactions. Ryan assists corporations both locally and nationally, in every stage of the real estate process, including projects such as relocations, consolidations, subleases, acquisitions, dispositions, strategic planning, demographic and site consulting, project management, and post-occupancy services.