Businesses Take Novel Approach to Office Needs

office needs

New international research shows that shared workspace has increased by 45% over the course of the last year. The United States leads the world with a total of 781 co working spaces, as opposed to just 537 recorded in February 2012, as trends show a shift to more collaborative work spaces and solutions that are more cost-effective for different sized businesses, like serviced offices or sharing office space with other companies.

The increase could have something to do with the fact that 33% of the American workforce has taken it upon themselves to become “self-made”. Now, 42 million Americans are either freelancing, involved in a small start-up business, or self-employed. And, in line with this, the demand for shared work environment is also increasing. Australia found itself in fourth place, following Germany and the United Kingdom, which occupied second and third places respectively.

According to a global survey there are now 2,498 operating across the world, an increase of over 300% since 2010. The first shared space opened up in 2006 and every year since then has been seen the prevalence double.

And, while there might be an overwhelming number of people working from home, behavioural psychologists remind us that human beings are sociable in nature. Getting interaction with others is an essential component of our emotional health.

In support of those figures, one of the country’s leading architectural firms claims that as organisations need to make their workspaces function more effectively collaborative workplaces look set to become more popular down under.

As hot-desking or activity-based working becomes more prevalent in many corporations architects say collaborative workspaces are more conducive to innovation and employee retention. This is because they can generate or develop communities of workers who pay significantly lower rentals to lease their portion of an office. They also benefit from inter-personal communication that allows for more creativity and better problem solving capability.

It is also becoming an important cost consideration in light of the expense of leasing office space in prime business locations. A new property price index has found that the West End of London is the world’s priciest place to do business, trumping Hong Kong’s central business district which dominated first place for five years. Rio de Janeiro’s Zona Sul moved up to third place after ranking in eighth position in 2011, followed by Connaught Place in New Delhi, India and then Tokyo’s central business district, Moscow in Russia and Beijing in China. Mid Town in New York came in eighth position and Sydney’s CBD ranked in ninth. Paris finished off the top ten. The report also found that Indian cities saw the biggest growth rates.

The total amount of investment in real estate in Thailand increased by an impressive 81%, between 2011 and 2012, according to other news sources. As a number of major property funds and acquisitions flooded Thailand’s real estate markets, its investment increased to US $2 billion. In 2011 listed property find transactions amounted to US$1-billion, which made up 55% of the country’s total investment value. Just one property fund listing, worth US $594 million made up more than half of that figure in one transaction.

In Southeast Asia real estate investment increase to a total of $26.7 million for 2012, an increase from the $25.5 billion recorded for 2011. Office sectors in Malaysia, Singapore and Thailand dropped to $4.1 billion, a decrease of 32%, and comprising 15.5% of its total investment value. Residential property continued to thrive however, amounting to $8.5 billion, with hotel investments also doubling in value. Office sector investment in Thailand has struggled in the last few years, suffering because of restricted product offerings and a disparity between the prices expected by sellers and buyers.