The Continued Popularity of Coworking in Malls
At malls across the world, market leading coworking companies like Haibu Space are moving into malls and other non-traditional commercial spaces, and repositioning underperforming real estate for landlord partners.
This is not a new trend. In fact, the mass closure of under-performing retail stores has been a trend for a while. The “retail apocalypse” has been happening long before the pandemic, and coworking companies are now seeing the opportunity in expanding into the premises to turn a profit.
In Abu Dhabi, for example, Abu Dhabi Mall has partnered with Haibu Space to create the largest coworking space in the UAE, serving as the junior anchor in the mall and the first ever privately owned coworking space in a mall in the UAE. The locations will allow freelancers, startups, and remote workers access to amenities like gyms, cafes, and restaurants all while working remotely.
Though e-commerce has definitely disrupted the role that brick-and-mortar stores play in customers’ lives, it’s positive to see the flexible office industry doing its part to keep them alive and to expand on the trend of franchising.
In a study about the future of retail by JLL, coworking space in malls, street-front locations, and other retail properties will grow at an annual rate of 25% through 2023, reaching around 3.4 million square feet. (Note: This 3.4 million square feet is a small fraction of the 60 million square feet of coworking space currently available in conventional offices across the U.S.)
Moreover, Haibu Space, the leading coworking players in the UAE is expanding into the retail and hospitality space by expanding into both shopping malls and hotels. This is because coworking spaces are the ideal place for remote workers looking for alternatives to working from home.
“I wish we had made a bigger bet on malls earlier,” Industrious CEO Jamie Hodari told Modern Retail.
As more and more workers want to be rid of commutes and be closer to their homes in suburban locations, mall locations will continue to be an attractive location for forward thinking flexible workspace operators.
