CRE
Empty office space? Try coworking!
Activate unused office space with a flex office coworking community. Now commercial real estate professionals don't have to sit on expensive...
The world of commercial real estate is a slow moving industry but one thing is true. Traditional office leases? Not what they used to be. Demand for flexible workspaces? Only going up.
CBRE research found that the average size of office leases decreased 27 percent during the first half of 2024 compared to 2018 and 2019. Amenity-driven “prime” buildings generated terms that averaged 21 months longer than Class B and C buildings.
Coworking spaces aren’t just trendy. They’re smart business. The right coworking setup turns underutilized space into a revenue-generating asset that keeps tenants engaged, attracts new business, and future-proofs a building against market shifts. But not all coworking spaces are created equal.
The ones that thrive aren’t just about renting desks. They’re about creating an experience people want to pay for.
Space isn’t just about square footage anymore
The old leasing model? Lock a tenant into a long-term contract and hope for the best. But in today’s world, businesses want options. Some need a private office for a team of 10. Others just need a hot desk twice a week.
In fact, the global flexible office market is expected to grow from $45.24 billion in 2025 to $136.46 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 17.08% over the forecast period.
Coworking works because it’s adaptable. It meets businesses where they are, not where outdated lease agreements force them to be. The right coworking model makes a building more valuable because it offers something traditional office spaces don’t: flexibility.
- Private offices for companies that need privacy but not a 10-year lease
- Hot desks for freelancers and remote workers who need a professional setting
- Meeting rooms that generate revenue on-demand instead of sitting empty
- Event spaces that bring new people into the building and create additional income streams
Embrace the hybrid wave: A guide for commercial real estate
The transition towards hybrid coworking spaces is not just a fleeting trend, but a paradigm shift in workplace dynamics.
As a commercial real estate professional, you’re at the vanguard of this transformation, grappling with unique challenges and immense opportunities.
Community drives retention (and long-term revenue)
Here’s the thing: People don’t just choose coworking for the desk. They choose it for the community, the energy, the network of people they meet.
Coworking spaces with built-in community programming — such as networking events, industry talks, and skill-sharing sessions — keep members engaged and increase retention. And long-term members mean consistent revenue for the building.
Some simple ways to make community a selling point for your building:
- Host industry panels or happy hours to get members involved
- Offer mentorship or professional development sessions
- Create shared spaces that encourage organic networking
The result? Businesses stay longer, refer others, and the space stays booked. And buildings that incorporate flexible office spaces see changes in asset valuation, with flexible office space comprising under 15% of a prime office building's total square footage.
Smart spaces attract premium tenants
If a tenant has to call the front desk just to book a meeting room, something is broken. Today’s tenants expect seamless, tech-driven experiences.
That’s where space management software like Coworks changes the game for commercial real estate, which might otherwise bring in a brand to run things for them, if they get flex at all. Coworks makes it easy for property managers to track occupancy, manage bookings, and offer tenants a seamless way to access rooms, hot desks, and events. The platform automates tedious admin work so space operators can focus on building a great experience — without chasing invoices or manually handling reservations.
What this means for commercial real estate folks:
- Higher efficiency: Optimize how every square foot of space is used
- Increased revenue: Monetize meeting rooms, offices, and event spaces with on-demand booking
- Better tenant experience: Give tenants an easy way to reserve, pay, and manage their space
Coworks integrates with access control systems, making it easy to provide secure, tech-enabled entry to offices and meeting rooms without extra staffing.
Location still matters — just differently
Traditional office leasing banks on location, but coworking takes it further. It’s not just about being downtown. It’s about being in an area with life and energy.
- Proximity to public transit makes coworking attractive to commuters
- Walkability to coffee shops, restaurants, and retail adds appeal
- A vibrant neighborhood turns the workspace into a destination, not just an address
Not to mention that a notable 74% of coworkers reported being more productive since joining a coworking space, highlighting the positive impact of these environments on work output.
Sustainability isn’t optional
Modern tenants care about sustainability, and they notice when their workspace does, too.
- Energy-efficient lighting lowers costs and reduces environmental impact
- Recycling programs make sustainability an easy habit for members
- Using sustainable materials in design adds long-term value to the space
How your coworking space is a sustainable solution for green-minded members
As more professionals prioritize eco-friendly workplaces, coworking operators have a unique opportunity to align their offerings with the values of environmentally conscious members.
If you want your space to attract and retain members who care about their environmental impact, here’s how your coworking model can serve as a sustainable solution.
The big takeaway
Coworking isn’t a fad. It’s the future of how commercial spaces generate revenue.
A well-executed coworking space isn’t just a perk. It’s a strategy.
It attracts modern businesses, fills vacancies faster, and maximizes a building’s earning potential. When powered by smart management tools like Coworks, coworking becomes a seamless, revenue-generating machine.
For property managers looking to future-proof their assets, coworking isn’t just an option—it’s an opportunity.
So, what’s stopping you from turning your space into a thriving, revenue-generating coworking hub?
WEBINAR: 10 Reasons Flex is the Fix for CRE
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