The Future is Bright for Coworking Spaces

When it comes to commercial offices, the trend is rapidly moving in the direction of coworking spaces. There are an estimated 35,000 flexible work areas in the world today and the global market value of these spaces is estimated at an approximate $26 billion. In New Jersey, there’s no doubt that coworking space has taken a strong foothold and isn’t going anywhere.

Jeanne “Lisa” Wolschina, a Realtor® with Keller Williams Realty based in Haddonfield, said the increasing interest in coworking spaces is undoubtedly linked to the fact that more employees are working remotely than ever before.

“When employees find it too difficult to concentrate at home, they decide they’d like to work in a separate space,” Wolschina said. “Of course, the local coffee shop isn’t always the best option. Sometimes people need more space to spread out their materials and concentrate. Since commercial rental spaces are expensive, splitting the cost of an office space is a no-brainer.”

Wolschina’s social media manager, Rebecca Elmuccio, owner of social media marketing firm Yellow Pear Media, also based in Haddonfield, has worked out of a coworking space herself. Elmuccio said it has created networking opportunities for her that wouldn’t exist when working from home.

“Those networking connections have led to a lot of referrals and work over the years for my freelance business,” Elmuccio adds.

Elmuccio suggests Realtors® who are helping clients find the ideal coworking space should really help narrow the list of what features are most important. Coworking spaces can differ dramatically. She suggests asking questions such as:

• Do you need to look at spaces that offer private offices or are you comfortable working in an open workspace?

• Are you looking to network and connect with other people in your specific industry?

• Do you make a lot of phone calls and need a private area where your calls are not disruptive to others?

“Realtors® can help guide people in finding these spots because the thing we focus on most is our client—not the building itself,” Wolschina said. “We learn what people need and want—and we go find it for them.”

Setting the Bar Among the locations in New Jersey that have served as inspirational models, Bell Works in Holmdel tops the list. The Bell Labs complex functioned for 44 years as a research and development facility before being reimagined as a one-of-akind destination for both business and culture. Currently, 49 different companies call Bell Works home and there are 60 coworking tenants using office space within the building. There are also 154,000 square feet of retail space and 110,000 square feet of public space—demonstrating its truly multi-purpose functionality.

Sean Donohue oversees the strategic expansion and growth of coworking operations at Bell Works. He said that no matter who comes through the door, the narrative is almost always the same.

“It’s almost always a similar story—someone tried to work out of their home and it’s just not working for them,” Donohue said. “I did four tours yesterday and though they were coming from different careers, they all had that same common thread.”

By signing up for a coworking space, Donohue said clients are essentially taking on a “membership” to use office space.

“The benefits include things like a shared conference room, shared printer, and reliable internet with faster bandwidth. It’s also the help that is available. If you are having trouble with the computer, we can help you. You’re suddenly not on your own.”

Coworking can really work for anyone who needs an office and isn’t required to work in a specific location, adds Wolschina.

“It seems to be especially helpful for salespeople who travel a lot but need a part-time ‘home base,’” she said. “They can make appointments with clients and go on the road to visit them but still return to a coworking office to do their paperwork, make phone calls, or just have a space to work when they’re not on the road.”

Justin Korinis, principal of Sabre Real Estate Advisors, a full-service boutique real estate and advisory firm which has a Hasbrouck Heights location, agrees when businesses have folks on the road a lot, the coworking model can be particularly attractive.

“If you’re a 15-person business but you have half of those employees on the road most of the time, you’ve suddenly only got seven or eight people that need physical working space,” he said. “In a coworking model, those people can still have access to a kitchen or a conference room as well as other shared spaces where there is not only the feel, but also the benefits, of working for a larger company.”

A Growing Trend In general, Donohue said he sees coworking as a great trend for New Jersey as it’s an important way to keep talent here in our state.

“It’s keeping companies closer to home and keeping opportunities in our market,” he said. “I think as this industry continues to mature and evolve, coworking will only become more in sync with established real estate.”

Going forward, Donohue said he believes there will be more specialization within coworking spaces with different areas catering to different clients. He foresees more boutique pop-up locations and maybe some mergers.“I think you’ll also see more spaces creating ‘passport programs’ where they might not only have space in South Jersey but maybe North Jersey, too, and there will be be some collaboration between those spaces.”

Korinis said this model of sharing spaces and being in collective settings is growing in all facets of real estate—beyond just an office. Even on the medical side, there’s going to be a growing trend of shared space for multiple physicians and practices operating under one roof. On the retail side, Korinis said you will see retailers “curating brands within a shared space.”

“The overall trend is about usership over ownership,” he adds. “The connecting link is all about desired flexibility. People are willing to pay a premium in order to gain that benefit.”