Co-working: One reason office real estate demand is shrinking

We have highlighted in several recent posts on this blog that, as a matter of fact, the size of the American office work space is shrinking.  Some say to as much as 100 square feet per office worker.  And still Fairfax County, its planning staff,  and the Reston Task Force are insisting that office workers will occupy 300 square feet of space.  The potential result:  Up to three times as many workers in an office building as we are planning for--if market demand permits.

In an article in the National Real Estate Investor magazine, writer  Beth Mattson-Teig attributes this largely to "co-working," a relative new approach to team working in office environments.  Here is some of what her article says:

Co-working—the latest trend in workplace strategies—could be the catalyst that shakes up the staid office market.

“I think there is going to be a dramatic shift in how we use space,” says Chris Zlocki, managing director of strategy and innovation for corporate solutions at Colliers International in Denver. . .

Morphing office space

The shrinking office footprint supports two key trends. First, companies are striving to use real estate more efficiently to get an immediate bottom line impact. Second, it also reflects the shift in how companies are utilizing space differently to accommodate changing work patterns.

Certainly, companies have been testing alternative workplace strategies for years. Concepts such as hoteling, hot desks and home-based workers have been used for more than two decades.  . .

Shifting demographics also are accelerating change as companies work to accommodate a younger generation of workers. Gen Y, or the new Millennials as this group of teens, 20- and 30-somethings is often called, is a more tech-savvy, socially-centered workforce that has grown up with the concept of using technology to solve problems. Gen Y is not just driving the co-working trend, but they are also fueling a shift to a distributed work day.  . .

Staying connected

Co-working is creating demand for alternative workplaces―both in corporate settings and at third-party facilities. . .

In addition, co-working is impacting how office space is configured. . .

For the rest of this good look at "co-working", click here.