Real estate demand in city suburbs has grown as people look to escape from the population density of the city. Consumers aren’t necessarily buying in these areas — brokers show that short-term rental demand is growing outside of major city centers.
This new suburban population needs places to work, creating a higher demand for co-working spaces in city suburbs.
Covid-19 Accelerating a Shift to the Suburbs
Some co-working and flex space companies were already starting to build out a suburban presence in response to millennials fleeing expensive, cramped urban spaces for cheaper suburban living.
According to a report from Crushman & Wakefield, about 40% of companies who relocated their headquarters between 2014-2018 moved to the suburbs. This was before the coronavirus gripped the country.
The virus thrives in dense, urban environments. As people look to protect themselves and their families, they’re renting in areas with lower population density. This compounds the existing trend toward suburban living, driving more people to the suburbs than ever before in recent history.
Flex-Work Companies Cater to New Suburbanites
Some co-working companies with a suburban presence are looking to expand further, while others are seeing rising demand for suburban co-working spaces.
Most of co-working company Industrious’ presence has been within New York City’s limits, but the company said that much of their new business is coming from existing clients wanting new suburban locations.
Industrious’ newest location in Short Hills, New Jersey filled up more quickly than any of their previous locations.
Similarly, Serendipity Labs is a co-working company with a presence in New York City and surrounding areas. The company claimed that the majority of their new business comes from companies looking to provide a safer, less dense work environment for their employees.
Co-working companies are also looking to provide more flexible lease terms, as the industry does not yet know if suburban growth will be a permanent change or a temporary shift in response to the pandemic.