South Boston is hailed as the latest example of co-working space in
a new NAIOP report
There is an immense amount of positivity flowing
throughout Greater Boston with regards to the real estate industry.
From residential sales, to the leasing of property, to the
construction industry improving the inventory levels and more, the
commercial market is also thriving. A unique and innovative
approach in the commercial industry in particular is now gaining
steam in the Hub, known as co-working centers.
These more open working areas are on the up in terms
of popularity, especially in Boston, according to a new report from
NAIOP. Essentially, workers share the same roof but not the same
boss nor company. The survey highlights these creative and
functionally brilliant spaces as those, …combining an array of
freelancers, entrepreneurs, programmers, app developers, startups,
and anyone else who wants WIFI and a chance to socialize and
exchange ideas with other professionals. The centers are different
from a traditional office environment, featuring large, central
open spaces filled with couches, coffee tables, and casual
furniture, with private phone booths and a handful of traditional
offices around the perimeter.
These commercial spaces not only save individuals and
small businesses money, but they are born out of many generations
of public and private sector-sponsored business stimulation
movements. While incubators began these efforts, they have led to
the development of innovation centers (such as in the Seaport
District), accelerators, and these co-working centers.
The latest example of these properties comes to us
from a newly opened 500,000 square foot building on A Street.
Located at the Channel Center in Bostons Seaport District, this
building is owned by the State Street Corp. It is here where they
have implemented a built-to-suit space with co-working
interdepartmental common spaces and multifunctional areas, thus
trying to get away from private, individual spaces.
Rents run per seat here at State Streets building, and
have been reduced by 35% to $5,500 from $8,500 per month. Each seat
is now entitled to 108 square feet from the previously designed 170
square feet, a decrease of 36%. As a result and given the demand to
utilize such forward-thinking space, occupancy increase from 65% to
90% most recently, and the annual cost per employee fell by an
impressive 53% from $13,000 to $6,500, hence saving $2.6 Million
annually.
As these co-working centers continue to be developed,
there are more worth mentioning. Workbar on Atlantic Avenue in
Boston has 8,000 square feet of space, while Central Square
Cambridge has 13,000 square feet, and there is also the
praiseworthy Cambridge Innovation Center.
Some facts from the NAIOP report regarding co-working
commercial spaces are the following:
-
U.S. co-working centers have grown from just 1 in 2005
to 781 in 2013. -
The U.S. leads the world in the number of co-working
spaces. -
Co-working membership increased 117% from
2012-2013. -
Co-working spaces increased 83% from 2012-2013.
Thomas Bisacquino, the President and CEO of NAIOP,
came forward to conclude on these findings that, Co-working centers
will never replace conventional office settings, but our industry
is responding to the growing demand for a different kind of
workplace, and were excited about what that means for future
development and investment.
More Information: Boston Business
Journal