CREJ

INSIDE W ith an estimated 43 per- cent of the U.S. labor force working remotely at least some of the time and the sharing economy in full swing, it seems that shared office space is the next major opportunity in real estate. In fact, according to estimates by JLL, flexible office space will grow to 30 percent of all office stock by the year 2030. This move comes as more and more millennials in the workforce are embracing shared products and services and, coincidentally, large retailers are reducing the size of their stores, which is causing property own- ers to seek new opportunities for their vacant retail space. The biggest question for prop- erty owners is can a coworking space fill a retail loca- tion with the same impact and profitability as the standard retail tenant? According to our recent report, coworking is a viable solu- tion for vacant retail properties as it increases foot traffic by provid- ing a guaranteed daytime popula- tion. The added foot traffic also helps to bring new life into shop- ping centers and can attract new retail tenants and shoppers. Coworking as an industry also is experiencing rapid growth. Coworking space in retail proper- ties will grow at a rate of 25 per- cent per year through 2023, with a majority of coworking spaces either located in malls, street- front or urban retail locations, according to our firm’s estimates. Coworking spaces currently are looking at retail properties in spe- cific areas and coworking tenants often seek out space in neighbor- hoods with high walkability. In fact, 33.3 percent of coworking locations are in areas that were ranked as a “walker’s paradise,” Private capital, multitenant retail offerings are experiencing a wide range of valuations Investment market PAGE 6 Tips to help contractors who are facing staff- ing challenges in this tight labor market Contractors’ dilemma PAGE 23 Colorado’s grocery market has strengths and weaknesses as well as areas to watch Grocery store update PAGE 21 Please see Page 25 November 2018 Coworking: Coming to a center near you? Spaceus A model that combines coworking space with retail showrooms engages the public and adds a stimulating, cultural experience to a shopping center. Pictured here is Spaceus, in Boston, which caters to local artists and provides workspace, business development events, classes and complimentary refreshments, as well as incorporating retail at the front of its space so that artists can sell their work. Keisha McDonnough Virtue Senior research analyst, retail, JLL