Sharing + Real Estate
Understanding if and why you should invest in shared real estate.
By Curiosity is Keys, Keys AM’s research & development arm, and Human City, a spatial strategy research & consultancy firm.
You dreamt of having a car, your own house and yard, a custom workplace for your company? Just like your parents and grand-parents. But then airbnb, car2go, co-working and the rest of the sharing economy have reshuffled the cards for you? Those fairly new services may have encouraged you to reconsider your ownership goals, as you realized that you could enjoy access to quality spaces and services without having to bear the burden of being an owner.
The sharing economy — by which individuals have been able to exchange resources by way of loan, rental, gift, barter, etc. — has indeed shifted a few things. In real estate, it allows
- for space to be used differently,
- for individuals to generate income from assets they own or rent such as a spare bedroom,
- and for businesses, to optimize space usage for example.
Those new consumption habits for space got us thinking about how we could design buildings to make sure we meet user expectations. That’s why Curiosity is Keys asked Human City to explore the importance of sharing for consumers, businesses and cities. To understand if and why we should invest in more shared forms of offices and homes, and in mixed-use developments.
So : what is the future of sharing?
If you weren’t convinced… Sharing space is not a new idea!
“Our oldest villages are based on the idea of sharing resources. And while modern cities have been to provide individual space for a lot of people, it has come at great expense.”
So around the time of the last financial crash, in 2008, entrepreneurs started creating digital platforms like airbnb to help people share their assets, being cars, homes, offices and other things. And those with extra space were able to find the people who needed to rent it. The sharing economy had really taken off!
For Bryce from Cutworks,
“the biggest shift is really coming around as space as a service. And within this umbrella, we’re seeing the rise of co-working, co-living, new forms of hospitality, that are really taking this idea into a whole new paradigm. This is defined by flexible rental models or pay per use models and deep integration of services and convenience, and just all kind of being packaged into a very streamlined offer.”
In 2015, sharing businesses received more venture capital funding than any other category, and since 2010, investors have dumped more than 23 billion euros into startups operating with a share-based model.
Users seem to be all in!
Most end-users are attracted to spaces that make them feel good, both physically and mentally.
“I like the idea of a small private co-working club. Perhaps it could be tailored towards a specific group of people”.
“I want a hybrid between a coworking space and a cafe, like at Crew Collective in Montreal”
“I really like the idea of a community space that you can regularly use, like the community house at Absalon in Copenhagen.”
Quotes from our research Sharing + Real Estate.
Users prefer mixed-use spaces that mix living, eating and working, or a combination of live, work, eat and play. They call for
- Affordability! Shared spaces reduce the cost of living, and give consumers access to nicer facilities.
- Community! Shared spaces provide a different experience because they facilitate meaningful interactions.
- Wellbeing! Shared spaces should be communal and airy, with plenty of light.
According to Bryce at Cutworks again :
“…the space [must be] integrated into its local, social and cultural fabric. Successful spaces typically have a public or open ground floor and or a rooftop. And between those spaces, some draw in the local community”; “the space that can really crack a really successful economic model, but in order to succeed it also has to cultivate community, and foster meaningful relationships, and not leave it up to chance.”
Who are we talking about?
Shared spaces are increasingly popular among older and younger generations, and the “loneliness epidemic” means more people will want to live and work in shared spaces in the future. There are also environmental and cost benefits to sharing!
Shared spaces provide citizens with access to vital common resources, and essential services like affordable housing and workspace — according to Co-Cities
Consumers often fall into four categories:
- highly mobile professionals who have a short-term need for shared spaces in different locations around the world;
- and people in transition who have a long-term need for shared spaces in their hometown;
- People wanting to gather around a common set of values, e.g. the protection of the environment.
- People in need to pool resources to be able to afford higher-quality goods and resources.
End-users are now focused on the richness of experience.
And they are attracted to places because it is where ‘things happen’. This means that both operators and asset owners must learn how to tailor their product and services to meet the needs of their niche audience.
In short : “it’s all about place & experience!”
In practical terms, it means building and reshaping assets to design experiences.
This type of development implies a holistic user-centric approach, agile and modular construction, reconfigurable buildings, responsive operations. And in that, every stakeholder of the real estate value chain has a role to play, from investor to operator.
“We can use the space in our buildings more efficiently, and we can offer a wider range of services to our customers”
“Shared space gives us flexibility and choice so that we can adapt to meet the changing needs of our customers.”
Quotes from our research Sharing + Real Estate.
You dream of having your own house, office and car? Sharing might actually be even better!
>> Full report available for download here. <<
