Texas expert: Coworking in Houston isn't going away — it's evolving
guest column
Before the pandemic, Houston coworking demand mirrored that of the rest of the country: shared space was booming, new operators were opening up. Demand was growing in Houston, as it was in other markets.
When the pandemic arrived in Houston last spring, the city was hit with a crisis on two fronts: local public health challenges due to the arrival of COVID-19 were further complicated by a downturn in the price of oil and gas industry — the literal fuel of this city's dominant industry.
But coworking hasn't faded away as office spaces closed or reduced capacity – it's evolved. In fact, the ongoing pandemic has accelerated this changing space and pushed operators to adapt their offerings to meet the market's needs. The result in Houston is the emergence of three major trends that we expect to see persist beyond 2021.
Increased demand for private offices
According to a recent report from JLL, up to 70 percent of all office spaces were primarily or partially open plan in design by the first quarter of 2020. But few of us want to sit in an open plan office with a dozen other masked professionals while fielding Zoom calls, but working from home isn't an option for those who lack the space and privacy they need to effectively work from home.
This combination of pandemic-related stressors has driven more Houstonians to seek out private office space for rent. The basic requirements in the pandemic era look slightly different than what we might have observed a year ago. Professionals want:
- Private office spaces with doors that close and lock
- Walls that provide privacy and noise insulation
- Secure IT infrastructure, chiefly high-speed internet access
- Enhanced cleaning protocols in common spaces and high-touch areas
- Closed ventilation loops and as much clean air piped in from the outdoors as possible
And coworking spaces are doing their best to deliver this calm, safe environment where busy professionals can come to do focused work.
More short-term arrangements
The future has never looked more uncertain to professionals and leadership in all sectors. Here at the end of 2020, many companies that have paid nearly nine months of rent on office space that they've been unable to safely use are weighing the benefits of breaking their years-long commercial leases.
Companies are not sure what the structure of their teams will be in three months, nevermind three years, and this is changing how leaders think about their real estate contracts. In this climate, many are turning to coworking spaces that offer six- and 12-month contracts with furnishes and IT infrastructure in place to lighten their financial commitments to physical spaces.
The other trend in short-term leasing that local coworking spaces have embraced is the day office. Given that many of us are planning to work at least part-time from our home offices for the near future, coworking spaces have spotted the opportunity to offer a pay-per-day model to engage professionals that only need a break from the home office one or two days a week.
A private office as a status symbol
The office used to be where we went to get away from home five days a week. For members of traditional coworking spaces in the startup and tech industries, the office often felt like an incubator where spontaneous connections happened.
But in light of the pandemic, private office space has become a refuge where professionals go to feel safe, achieve focused work, and execute sensitive tasks with assurance that they have a level of privacy that can't be achieved at home.
Whether you're looking to speak with clients or prospective employees remotely, private office space and polished meeting rooms have also come to be a status symbol. A video call with chic design elements visible in the background of their office space communicates something powerful – the people in those chairs are invested in the time they spend at work.
Moving into 2021, Houstonians are ready to return to work. Even before the pandemic arrived, commercial real estate was beginning to see that the future of work will be more flexible and more often remote than it was in the past. While we're not through this crisis yet, many professionals are already looking for a new kind of private office arrangement, and local coworking operators are working to deliver the space these Houstonians need.
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Anish Michael is the CEO of Austin-based Firmspace, which has a 32,000-square-foot space in BBVA Compass Plaza in Houston.
The Green Corridor initiative.Courtesy rendering