The Rise and Fall of Co-Working
Kate Whalen | Senior Associate
If you ask anyone in the commercial real estate industry, there is one topic that is continuously being discussed, in both positive and negative respects – and that subject is co-working. Is it sustainable? Is it going to crash and burn? How will it affect the market if it fails?
Flexible office space has been on the rise nationally over the last 3-5 years, and it has been particularly active in D/FW, where the diverse economy and business-friendly environment has made it a breeding ground for various flexible space companies to open up shop, or grow their existing presence. In fact, as of Q4 2019, co-working space accounts for about 3M SF of office space in D/FW.
The biggest risk with these spaces is the fact that co-working companies are taking large blocks of space, and signing long term deals with Landlords, while most co-working space users are looking for a short-term solution, typically signing leases between 6-36 months.
While it’s certainly a hot topic of conversation amongst real estate professionals, experts don’t seem to be too worried about the future of co-working, or the risk of failure. Research and statistics are betting on the co-working space to continue its growth trajectory, with new co-working companies unveiling themselves in major markets more frequently than ever before. In fact, this same research is estimating that by 2030, co-working space will make up about 1/3 of the office market.
Only time will tell, but for now, it’s safe to say that co-working is not only surviving, it’s thriving – In Dallas-Fort Worth and nationally.