Coworking: Opportunities for Landlords
There’s a growing trend in Dubai that is changing the way people work. Gone are the days when people are limited to the traditional offices space in Dubai. With the Internet affecting almost every aspect of life, people now have a choice to work in coworking space.
According to one estimate, there are around seven million people who will be working in a coworking space by the end of 2019. This number is seen to grow exponentially in the many years to come as millennials are poised to take over the workforce.
In one recent report, coworking space is seen to occupy between 320,000 to 530,000 sq. ft. of space around the world. In Dubai, there are more than 50 coworking locations and this number is growing year after year. In fact, this figure represents a 130% increase since 2015. It is worth noting that Dubai has a fast growth rate in the coworking industry and now, it is estimated that the city has more than 650,000 sq. ft. of coworking space.
Because of the shift in how people work, commercial spaces and an office for rent in Dubai need to cope. There has been a recent reduction in rents and vacancy rate is on the rise. Thankfully, coworking spaces are here to help landlords and developers mitigate the problem.
It is no secret that larger commercial spaces are more difficult to lease than the smaller ones. The increased demand in coworking space gives landlords the opportunity to turn their big commercial space in smaller rentable areas. With strategic and accessible areas, these commercial spaces are ideal for coworking space.
Freelancers, entrepreneurs, and small startup companies choose coworking space because of the flexibility it provides. Instead of renting a full-scale office, individuals are given the chance to enjoy the ambiance of an office without actually paying the full price.
This is the main reason that landlords could now improve their business by converting their unused commercial space to coworking space. There’s a great flexibility that comes with this decision. There are also benefits for people who don’t want to rent office Dubai on a full scale.
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