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The Future of the Commercial Property Industry

Importance in understanding the current trends of the industry that will shape-up its future can never be overstated. This world is filled with book store owners and record store owners who thought that the new technology will not affect their business, unless they found themselves wiped out of the market space. Therefore understating the future market needs can help you in achieving a leadership status in the future of that industry or lead you to ruins if you ignore the writing on the wall. Like every other industry commercial property industry is also going through significant changes in its way of operations.

Impact of Collaborative Working on Commercial Property Industry

• Concept of Co-working Environment

With the number of small start-ups increasing with every passing day, there are many individual who want just a real-estate footprint for the purposes of address. With the use of technology, the amount of workforce required is decreasing and creating communication channels with customers are getting easier. These facts are resulting in the companies which have small work force and therefore which require less office space for managing their operations. This has given rise to the concept of Co-working, where several companies use the same commercial space to satisfy their office needs.

• Benefits of Co-working for Companies

Buying a commercial property involves in it certain amount of risk, which depends on many factors. What small start-ups understand is that by coworking they are reducing the amount of risk they create. They are not indulging in any activity that resulting in any asset creation which could be termed as a financial strain on their operations. Therefore they are able to achieve same working in their operations as they would have, if they would have rented a separate office space.

• The Growing Trend of Co-working

The idea of collaborative working was most prominently seen in the UK among all the European countries. Due to the large amount of space that London is offering for collaborative working of the companies, it is leading the change in this industry. For example, Google in the March 2012 opened in the heart of London a coworking space. This campus built by Google which is located in the Tech City is breeding ground for several start-ups and is allowing them to prosper by learning every day. This asset light solution for small and agile companies is adding strength to the growth of this trend.

• Future Impact of Collaborative Working on Commercial Property

As communication with potential customers is getting easier with the advent of internet, there are more and more start-ups who are taking shape every day from the ideas of individuals. As the start-up costs seeing a decline, it is not difficult to guess that number of start-ups would increase. So will the trend of collaborative working in the commercial real estate market.

Conclusion

People involved in the commercial real estate business, whether as a constructor of the property or as a broker. They must understand the importance collaborative working on the future of commercial real estate business.

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