The co-working revolution has already had a substantial impact on the office leasing process.

Adding date: 12.12.2018 | Albania

The co-working revolution that has been going on in Poland for more than two years has already had a substantial impact on the office leasing process. Real estate advisory firm Savills has identified recent key office market developments driven by the growth of the flexible workspace.

In 2018, providers of serviced offices and co-working spaces delivered a total of 50,000 sq m of flexible office space onto Poland’s five core markets comprising Warsaw, Krakow, Wrocław, Poznań and Łódź, says Savills. Newcomers included WeWork, New Work and BE Yourself, which joined those with an established presence such as Regus, Business Link and Mindspace. As a result, the five cities’ total flexible workspace stock now stands at 163,000 sq m, most of which is in Warsaw (114,000 sq m) and Krakow (25,000 sq m).

To say that co-working spaces and serviced offices have been expanding recently at a rapid pace would be an underestimation of the scale of the revolution going on. In the past 12 months, flexible workplace providers announced new locations almost only a few days apart. Some signed leases on projects which will not be completed until next year or even two years later. It will be a moment of truth for the new phenomenon. We will probably see operators consolidate on the market or rents for such space fall, but surely there will be no going back to the pre-coworking revolution era, - says Jarosław Pilch, Head of Tenant Representation, Office Agency, Savills.

According to real estate advisory firm Savills, office market developments caused by the growth of the flexible workplace segment have resulted in competition for tenants among serviced office and co-working space providers and landlords offering traditional office space. This, in turn, has led to more flexible lease terms on older office space and developers creating their own co-working brands.

Another notable trend is the rise of hybrid transactions, say Savills analysts, where companies lease both some traditional office space and some serviced office or co-working space to enjoy more business flexibility. In addition, tenants can use flexible spaces in the early months of their operation on the Polish market before relocating to target office destinations or use such space in the time between the expiry of their current leases and moving to new offices.

Office landlords, inspired by what co-working providers do, are increasingly considering hiring community managers with responsibility for building communities of building tenants and users, for example, through organisation of events. Modern design solutions incorporated in serviced offices and co-working spaces are likely to lead to increased spending on office fit-outs by traditional office tenants wanting to provide an equally high-quality work environment for their future staff. Changes resulting from the co-working revolution also pose new challenges in real estate valuation and investment potential assessment.

Given the growth momentum of flexible workplaces, we may easily overlook how quickly they have changed our approach to office space leasing. Driven by social transformations and technological advancements, companies today expect faster and more flexible solutions. The office leasing market is now completely different from that a few years ago. Each and every change - just like co-working - disrupts the traditional market model, giving rise to questions and doubts. As long as it is a response to real demand, there is no chance of having it reversed, - adds Jarosław Pilch, Savills.



Table 1. Key office market developments fuelled by the expansion of serviced office and co-working space providers.



 

Connected materials

Coty has renewed its lease agreement at the Ambassador Office Buildin
Coty has renewed its lease agreement at the Ambassador Office Buildin
28.11.2018
Warsaw office market sees record-breaking results
Warsaw office market sees record-breaking results
10.12.2018
The big three of Polish outsourcing
The big three of Polish outsourcing
19.02.2019
Previous
The eighth edition of its ConsumerLab trend report
The eighth edition of its ConsumerLab trend report
Next
CEE hotel sector continues to boom
CEE hotel sector continues to boom

Newsletter

Calendar of events

  • DLA Piper Conference "Legal challenges for the BPO / SSC sector in Poland"04.04.2019 Warsaw (Poland)
  • The Innotech Summit: Destination UK11.04.2019 London (UK)
  • 19th Annual Shared Services and Outsourcing Week Europe 201913.05.2019 Lisbon (Portugal)
See others

Experts

PolandMateusz  Chudzik
Mateusz ChudzikAlumnus of the University of Łódź Law and Administration Department, a legal counsel listed in the registry of legal counsels kept by the District Chamber of Legal Advisors in Łódź; a partner in the ̎Chudzik i Wspólnicy Radcowie Prawni” sp.p. Law Firm. He is also a member of the Pro Progressio Foundation’s Program Board, acting with a view to developing the outsourcing industry in Poland.
see others

Outsourcing&More

Newsroom

  • Meating Point to open in Moje MiejsceMeating Point to open in Moje Miejsce26.03.2019
  • New tenants at Morski Retail ParkNew tenants at Morski Retail Park26.03.2019
  • Even $2.5 trillion by 2020Even $2.5 trillion by 202026.03.2019
  • Twice as many offices went to tenants than got completedTwice as many offices went to tenants than got completed26.03.2019
  • Echo Investment records another great yearEcho Investment records another great year21.03.2019
See others

Blogs

  • Do you like to sell? Do you know how to sell?
    Do you like to sell? Do you know how to sell?Wiktor Doktór
  • Why is Digital Marketing more important than ever in 2017?
    Why is Digital Marketing more important than ever in 2017?Sean Patterson
  • 3 Trend Shifts that have Re-shaped the BPO Industry
    3 Trend Shifts that have Re-shaped the BPO Industry Catherine Park
  • BSS events calendar for September
    BSS events calendar for SeptemberWiktor Doktór
  • Where is CEE on the global map of locations for BPO
    Where is CEE on the global map of locations for BPOWiktor Doktór
See others
  • Jen Smith
    Jen SmithContent Writer at Brandpacks
  • Catherine Park
    Catherine ParkContent writer & Developer
  • Tom Quigley
    Tom QuigleyOwner & Chief Marketing Officer of QUIGLEYMEDIA
  • Karina Kreja
    Karina KrejaWorkplace Strategy expert, Licensed Valuer
  • Krzysztof Herdzik
    Krzysztof Herdzik
See others

List of companies

Reesco sp. z o.o.
Reesco sp. z o.o.
(Poland)
See others