The past decade has witnessed several major changes in the way business is done, with flexible working arrangements becoming the norm and office spaces becoming smaller. Our previous post on current trends in office space highlighted the trend for shared office spaces and its big impact on the sector. As both owners and agents finding ways to innovate, let’s take a closer look at the current state of commercial property in Cape Town and beyond.
Shared office space – professional environments offering freedom and collaboration
Commercial offices are being converted into shared spaces at a rapid rate – and it’s easy to see why.
- Shared office spaces strike a good balance between working independently and having fellow professionals close at hand.
- Employees are free to work on projects at their own pace, coming and going as they please, with plenty of opportunities to collaborate when a team effort is needed.
Shared office layouts – high density spaces where comfort is non-negotiable
Shared office spaces fall into two main categories:
- Office facilities catering to individuals – usually self-employed professionals
- Corporate offices that have embraced independent, flexible working arrangements
These two types of office space have some features in common, including the need for comfortable meeting areas as well as contemporary workstations.
On-site catering, video conferencing facilities and boardroom facilities are also popular features of shared office spaces.
The main difference between these two types of office spaces is financial.
- Shared office spaces typically operate on short-term leases or monthly memberships
- Corporate remote working centres operate on fixed, long-term leases
Harnessing the profit potential of shared office space
Short-term leases allow maximum flexibility for users, which is a major selling point. However, commercial property owners will need to manage their occupancy rates and cash flow carefully since the number of tenants and lease periods can fluctuate greatly.
- Membership-based shared office spaces (especially those that offer business lounge access for a monthly flat fee) are a good source of fixed monthly income to offset these fluctuations.
- Despite paying their fees each month, some members may only use the facilities occasionally – much like gym memberships that are seldom used. This can be an excellent source of profit for building owners.
If you’re considering a commercial property investment, a shared office space may be ideal. Contact us today and we’ll guide you through the process.