Coworking & The Shared Economy in Real Estate

In mature, dense real estate markets such as Manhattan, San Francisco, and Chicago, commercial lease rates are at an all time high. This has made it increasingly difficult for smaller start-ups and tech companies to acquire spaces, consequently limiting economic growth. Meanwhile, as people buy more and more of their products online, retail vacancy rate has skyrocketed while lease rates have not kept up with their commercial counterparts. Enter the shared economy. By converting abandoned/struggling retail spaces to co-working space, the entire market becomes more efficient and everyone involved stands to benefit. Tenants receive discounted rates and can use as much space as is required by the size of their company, landlords make use of unoccupied space and see a higher return, and cities receive a boost to economy. While traditional retail spaces (e.g. clothing, stores, etc) can be fully converted, retail with low occupancy during certain times (upper scale restaurants, coffee shops, gyms, etc) can offer their space during off peak hours. Overall, this increases efficiency in the real estate market.

https://www.nytimes.com/2018/07/08/technology/restaurants-co-working-areas.html