Coworking - Will the model survive in the long run?
France's most senior office developers and asset owners met to discuss the evolution of coworking across the country.
June 6, 2018Real Estate
GRI Club France members gathered along with a selection of France's most senior office developers and asset owners for a closed door discussion on how the office/coworking asset class is evolving and the investment opportunities available in Paris and across the country.
The club meeting was hosted at the iconic Second Desk in Paris, a co-working space owned by Gecina. The venue reflected the growing popularity and tenant demand for such spaces. Members were joined by Meka Brunel (CEO, Gecina), Aurelie Deudon (Director, Second Desk) and Valerie Britay (Head of Offices, Gecina), who shared insights into their strategies. Members were also treated to the opportunity to explore the building.
Comments centred around the tenant demand and benefits that coworking brings to the table that ultimately might add value to the general and traditional office model. Contrary to popular belief that coworking is the saviour of corporate office space, the pros and cons of where it is going as a core investment opportunity divided opinion amongst our members.
On one hand it has been said that coworking has been a great tool in the fight to attract, retain and engage top talent in cities; especially in a new world millennial and ‘global citizen’ economy where decisions on where to work are not simply about pay grades anymore but also about the community and the benefits of a dynamic environment. Most members agreed that classic corporate office spaces would benefit if they ‘borrowed’ from the coworking culture by integrating more opportunities to connect amongst workers and flexibility.
On the other hand, opinions about coworking as the future of all office spaces were certainly scrutinised:
- Will the model survive in the long run?
- Are building owners generating attractive margins?
- Can building owners trust co-workers in the long run when in comes to solvency?
- Will co-working spaces develop more solutions and tailor their offer to companies dealing with a larger number of confidential data ?
To conclude, our discussions about coworking as the future of offices didn’t offer much resolution as to whether it was a go or no go to savvy investors. However, the collegial GRI format allowed members to share insights and think through their strategies together about the current play for office investments in Paris and France. Co-working can be seen as a beneficial value add to office stock, especially in the competitive age of flexible office working, technology, and the undeniable shift from real estate as a financial asset to one that delivers a service. Asset Managers and Investors simply need to deliver more to the customer, and it seems that right now, customers want co-working. However does coworking offer any real long term safeguarding for investors or is it just another millennial fad that cannot survive a downturn?
The club meeting was hosted at the iconic Second Desk in Paris, a co-working space owned by Gecina. The venue reflected the growing popularity and tenant demand for such spaces. Members were joined by Meka Brunel (CEO, Gecina), Aurelie Deudon (Director, Second Desk) and Valerie Britay (Head of Offices, Gecina), who shared insights into their strategies. Members were also treated to the opportunity to explore the building.
Comments centred around the tenant demand and benefits that coworking brings to the table that ultimately might add value to the general and traditional office model. Contrary to popular belief that coworking is the saviour of corporate office space, the pros and cons of where it is going as a core investment opportunity divided opinion amongst our members.
On one hand it has been said that coworking has been a great tool in the fight to attract, retain and engage top talent in cities; especially in a new world millennial and ‘global citizen’ economy where decisions on where to work are not simply about pay grades anymore but also about the community and the benefits of a dynamic environment. Most members agreed that classic corporate office spaces would benefit if they ‘borrowed’ from the coworking culture by integrating more opportunities to connect amongst workers and flexibility.
On the other hand, opinions about coworking as the future of all office spaces were certainly scrutinised:
- Will the model survive in the long run?
- Are building owners generating attractive margins?
- Can building owners trust co-workers in the long run when in comes to solvency?
- Will co-working spaces develop more solutions and tailor their offer to companies dealing with a larger number of confidential data ?
To conclude, our discussions about coworking as the future of offices didn’t offer much resolution as to whether it was a go or no go to savvy investors. However, the collegial GRI format allowed members to share insights and think through their strategies together about the current play for office investments in Paris and France. Co-working can be seen as a beneficial value add to office stock, especially in the competitive age of flexible office working, technology, and the undeniable shift from real estate as a financial asset to one that delivers a service. Asset Managers and Investors simply need to deliver more to the customer, and it seems that right now, customers want co-working. However does coworking offer any real long term safeguarding for investors or is it just another millennial fad that cannot survive a downturn?