Retail’s Newest Tenant: Co-working—Work Where You Shop

By Dennis Kaiser

In today’s digitally connected world, we are seeing a growing trend of remote workers and empowered employees deciding where and how they want to work. This has created a valuable opportunity for developers to attract co-working companies to retail centers. Colliers International’s Anjee Solanki, National Director, Retail Services, shared insights behind this embrace of a more holistic approach by landlords to fill their vacancies and increase foot traffic, which provides remote workers greater access to a flexible and amenity-rich environment.

Q: What’s the big takeaway from this shift to co-working and retail environments?
A: The shopping center or retail space is the newest location for co-working space. Co-working space benefits the retail nearby, since it has the potential to drive foot traffic to shops and restaurants. We found more than 60% of millennials are enthusiastic about co-working and believe it is very useful. Co-working will no longer be a trend, yet it will be expected and preferred over a generic, tradition office space. Flexibility has become a work lifestyle and co-working spaces its beneficiary. This has created a valuable opportunity for developers to attract coworking companies to retail centers. Cohabitating with retail creates additional conveniences. At lunch, for example, you could pick up a friend’s birthday gift and check out the latest fashion trends, just steps away from your office.

Q: What were a few other headlines that showed up this year in Colliers’ Spring 2019 U.S. Retail Spotlight Report as this trend emerges? What is surprising or noteworthy to you?
A: Co-working environments are becoming a forum for many community organizations to discuss important issues – it’s a safe and welcoming place. It also creates new conversations amongst strangers, resulting in new collaborations. Lastly, people continue to seek a social setting rather than working from home – so why not have a co-working environment at a shopping center.

Q: What advice do you have for companies in the retail space about co-working space based on Colliers report?
A: It’s no longer a backfill to vacant boxes, but rather a lifestyle shift, offering flexibility and providing a nontraditional office environment. We are seeing companies such as Staples and Equinox see the appeal of including co-working space into their space. A new merging trend is co-working space being incorporated into store format, brick-and-mortar continues to evolve. The next generation of shoppers spending at your centers are most likely those utilizing co-working/flexible work space. Don’t let them go elsewhere.

For comments, questions or concerns, please contact Dennis Kaiser