Coworking Spaces for Multifamily Properties
In 2020, more people work remotely than ever before. Since 2005, the number of professionals in the United States who work remotely more than 50% of the time has grown 159% to 4.7 million people. These numbers increase significantly when free lance workers and professionals who work remotely less than 50% of time are included. As a result, the way people view an apartment building is changing.
Gone are the days when an apartment is just a place to live. In general, apartment residents are looking for a multifamily property to provide a place to live, work, exercise and socialize. With the significant growth of remote work, coworking spaces for multifamily properties are becoming more popular.
What Are Coworking Spaces for Multifamily Properties?
According to Wikipedia, co-working is an arrangement in which several workers from different companies or independent contractors share an office space, allowing cost savings and convenience through the use of common infrastructure, such as equipment, utilities, and receptionist and custodial services.
Co-working spaces for multifamily properties refer to the creation of spaces dedicated to co-working at a specific property. In most cases, coworking spaces offer private offices ranging from 64 to 230+ square feet. In addition to private offices, most will have a common conference that can be reserved.
4 Examples of Coworking Spaces for Multifamily Properties
Recognizing demand for this apartment amenity, many of the biggest apartment owners have begun offering co-working spaces. Wood Partners, for example, is currently building co-working spaces into 13 of 26 communities currently underdevelopment.
One approach to creating coworking spaces for multifamily properties, is building a small number of spaces and making them available for lease. AMLI Residential’s AMLI 3464 in the Buckhead neighborhood of Atlanta, for example offers eight office suites that are available for $200 to $250 per month.
Since properties can’t go back and build coworking spaces, they must be creative and look at converting existing spaces. While the Optima Camel View Village in Scottsdale, AZ started with 12 co-working spaces, they had to find ways to offer more due to high demand. The solution was converting vacant ground floor retail space into co-working space. The property now offers 46 co-working spaces.
Another example of coworking spaces for multifamily properties is The Apollo, a Bozzuto Group property in Washington, D.C. While they developed the property with 550 co-working spaces, they leased the entire space to WeWork. As a result, WeWork is responsible for managing and leasing the space to residents and non-residents.
Lastly, Camden developed CoWork by Camden in Charlotte, N.C. out of a warehouse next an existing property. While the space is not directly inside the building, it offers 21 offices, 20 dedicated desks and 35 flex memberships. Similar to other coworking spaces highlighted, the space is available to residents and non-residents.
Benefits of Coworking Spaces for Multifamily Properties
Since creating a coworking space at an existing property is expensive, most properties build them as part of a capital expenditure project. This raises the question, is it worth it? In most cases the answer is yes, because coworking spaces for multifamily properties, offer two major benefits.
The first major benefit is increasing the appeal of a property to prospective renters by offering a place to live and work. While this appeals to many different demographics, it is big with Millennials, who truly look for a property to offer a lifestyle. As remote work continues to grow, a coworking space will only make a property more and more appealing.
The second major benefit is additional revenue. The 46 office suites at the Optima Camel View Village were created out of vacant retail space and are almost 100% leased. An available 238 square foot suite is listed for $800 per month with a 1 year minimum lease. Assuming all the suites are around the same size and monthly rent, the office suites have the potential to generate over $440,000 in annual revenue.
Find Contractors Using BidSource
Property managers can use BidSource to have the Property Manager Insider team locate a qualified general contractor who can help property improvements to create a coworking space. Just fill out the form with your project details and a member of our team will be in touch.