Suburban Markets Are Seeing An Influx Of Co-Working Space
Co-working has been a huge hit in America’s largest cities, and the trend is making headway into suburbia.
Co-working startups are finding success in suburban New Jersey. Startup Vi Coworking opened a location in Fort Monmouth this June, while Hugo Neu launched a 5K SF Kearny Point last summer, the Wall Street Journal reports. Hugo Neu Director of Leasing Nick Shears told the WSJ leasing in suburbia is stronger than he thought, and said many tenants who were looking for traditional office space opted for co-working because they were not ready to sign a long lease.
The rise of suburban co-working space reflects a broader trend occurring in office real estate nationwide. Suburban office has seen positive absorption for several years, with vacancy rates hovering near pre-recession lows. Suburban markets accounted for 74% of total net absorption in Q1 — a testament to the health of the industry being stronger than the common perception.
As municipalities build more walkable, amenity-rich neighborhoods with strong live-work-play components that appeal to young professionals, it is blurring the line between urban metros and suburban markets.
Suburban co-working spaces in New Jersey tend to be under 15K SF and are geared toward older professionals and focus on networking, the WSJ reports. Experts said established companies are using co-working spaces in the suburbs to offer valued employees the chance to work close to home, and many landlords are embracing the trend.