The COVID-19 pandemic has caused a massive shift in the way people work. Many companies switched to a remote work business model out of necessity to keep employees safe. Some organizations embraced the change while others eagerly awaited a return to the office. Industry experts have since predicted that hybrid workplaces are likely to become the norm. What does this mean for the future? Office spaces aren’t going away, but their role is set to change.
At Beach City Capital, we believe co-working office spaces will provide an ideal environment for many businesses and their employees to work productively moving forward. This type of office environment appeals to companies that want to avoid committing to long-term leases and hybrid or remote employees who prefer to work in a separate space outside of their own household. Many entrepreneurs have even started or continue to run businesses out of these spaces.
We also believe that co-working spaces provide an exciting investment opportunity for those seeking to diversify their portfolios and build their yield with commercial real estate. Watch the video below or read the transcription to learn more about this fast emerging asset class.
Co-Working Video Transcription:
Clem Butler, VP of Investments, Beach City Capital: “Hi. Welcome to the Beach City Capital topic video on co-working. So as you know the office environment is going through a radical shift. Corporate headquarters and large downtown offices are not occupied the way they used to be. And they likely won’t be used in the same way as we go forward.
“Here at Beach City Capital, we believe in the future of co-working.”
Jason Muller, Founder & CEO, Beach City Capital: “Company culture is also changing. More businesses are embracing employees working from home and setting up the hub and spoke system. This is where people look for spaces to overlap and meet. While also still having satellite offices so people can focus on productivity.”
Clem: “The long-term office is about flexibility. It’s not all work from home. It’s about being flexible about working part-time at corporate, part-time at home, but a lot of time at your local craft co-working location. A place that you can walk to or that you can bike to. Where you can get that professional environment that you need and crave to continue growing in your career or in your small business. While also having the amenities and the services that you’ve grown to enjoy like professional printing, copying or just that craft beer or coffee.”
Jason: “If you’re unfamiliar with the co-working concept, I highly suggest you go visit your local co-working office. It’s an interesting atmosphere that also provides you with low-risk short-term leasing. So if you have a start-up company, for instance, and you don’t want the 5- or 10-year liability of a long-term lease, go and get a small flexible office to start your company.”
Clem: “Beach City Capital was actually founded at a co-working location. Us as employees and as workers here at Beach City Capital. We love that environment. As a small company of four to five employees where we could also interact with other professionals in our building — and have luxury high-end amenities — while not having to have the risk of paying for all of that. But being able to share in those common areas and share in the amenities with other professionals.”
Jason: “Right. And if you have any more questions on co-working, please contact us at Beach City Capital. Thank you so much for your time.”