As spring 2017 is just around the corner, we’re taking a fresh look at the landscape. As we examine the first quarter under a new president, we see bushels of opportunity to take advantage of innovative office workspace trends, for both property managers and companies alike. We also see commercial venues blossoming in second tier markets such as Fort Lauderdale offices.
Office Workspace Opportunities for Spring 2017
For Property Managers Seeking Office Workspace
As the economic boom continued this quarter under President Trump with no signs of slowing down, the proliferation of new coworking spaces abounded. Our advice to property managers seeking to monetize unutilized office workspace by adding coworking facilities is to hone in on who’s going to serve you best, and then once you find where you feel most comfortable then you need to do your due diligence on the operator. Ask yourself, “Is this somebody who has experience?” There’s a lot of new coworking space providers to the marketplace now who won’t be around in two or three years. Many of them lack well vetted business plans. That’s a huge factor you should consider in terms of who you choose to partner with in terms of office workspace.
We advise property managers to seek operators who have survived multiple market cycles as Trump era geopolitical uncertainty is the wild card. As the Trump’s foreign policy falls on the side of protectionist, it’s not unlikely we’ll see some type of a pullback if exports decline. A track record of overcoming the obstacles of a prior market crash or two are wise to look for in the Trump economy.
For Companies Seeking Office Workspace
The momentum in the Trump economy has promoted the development of office workspace of all shapes and sizes, from coworking spaces in downtown Anchorage to Fort Lauderdale offices. If you’re looking for that very casual and informal place to go and meet, you can find that. If you’re looking for something more high end, as in a members only club, you’ll be able to find that. If you’re looking for something that’s more industry specific, whether it relates to the stage of your company or the industry that you are serving, you can also find that.
Economic growth may persist, or it may not. As interest rates have recently seen an uptick, it’s clear that policymakers favor a slow growth environment. It will be wise for companies to consider the possible decline in commercial real estate supply due to tighter lending. This may drive up rents and stall progress, presenting obstacles to companies operating in highly cyclical industries. For growing companies, the flexibility that shared office space can provide may be ideal. Established companies may be poised to weather economic turbulence a bit better and perhaps may benefit from higher risk taking, specifically if they are doing business with the Eurozone and UK which have shown positive economic signals so far this year.
With economic performance so strong over the last few years, rents have risen with no sign of correction in major markets such as New York, Miami, and San Francisco. The March interest rate hike, which is not the first one since the market crash in 2008, may just signify the end of the economic malaise and recovery. As the trend of rental prices skyrocking is not showing any sign of a reversal, those with geographic versatility may wish to relocate to lesser known markets and consider Boca Raton, Plantation, or Fort Lauderdale offices. Trump’s infrastructure plan may serve to enrich such developing real estate communities, but just as so many other aspects of his regime are unclear this too is murky.
An Office Workspace Name You Can Trust
With decades of office workspace industry, Laura Kozelouzek is Quest Workspace’s leader with experience that spans multiple market cycles and presidential regimes. Whether it’s our virtual offices, coworking, private office, or Fort Lauderdale offices, Quest can give you the freedom to work the way you want. Please email info@questworkspaces.com to arrange your personal tour.
