Growing Interest Among Large Enterprises Drives Rapid Expansion of Coworking Offices
- The coworking office market in central Tokyo amounts to 346 sites totaling 66,000 tsubo (estimate as of September 2018). This represents 1.0% of the total floor area of the office leasing market in the Tokyo 23 wards.
- The space taken up for coworking space as a percentage of total take-up in the Tokyo 23 wards has grown steadily in recent years, reaching 7.9% in 2018.
- Previously, most coworking offices were small-scale offices targeting individuals or start-ups whose aim for using such offices was to keep down costs. Recent years, however, have seen the emergence of large-scale coworking offices, which has led to large companies also taking interest as a means of improving productivity and employee convenience.
Coworking Offices Also Influencing Conventional Offices
- There are number of reasons why the adoption of coworking will continue to increase, including the growing need for flexibility in workplace, working hours and lease contracts, as well as changes in accounting standards. If usage continues to spread among major corporations, it could also change the way in which conventional offices are operated.
- Given the anticipated expansion in the size of the coworking office market and the increasing presence of coworking within the office leasing market, CBRE believes that it is essential for investors, developers and occupiers to continue to monitor the trends in this market.