Michael H. Zaransky, the Founder of MZ Capital Partners, has played a significant role in transforming a 24-story office building in lower Manhattan’s Seaport District into Pearl House, a cutting-edge urban living space. With nearly 600 apartments, Pearl House offers amenities catered to modern professionals, including snazzy coworking spaces. These spaces cater to the evolving work-from-home trend, where more people are choosing to work remotely. According to the National Bureau of Economic Research, about half of U.S. workers worked remotely at least one day a week in December 2020, and the World Economic Forum projects that over 90 million global jobs will be remote by 2030.
Coworking spaces are becoming a crucial amenity in multifamily real estate, alongside fitness centers and pools. Renters are emphasizing community workspaces as their work habits evolve. Professionals are looking for functional workspaces outside of their homes that offer quiet and well-lit environments. As remote work becomes more prevalent, coworking spaces are drawing more attention from renters. The trend of converting office space into multifamily housing with coworking spaces is gaining popularity, with developers repurposing vacant offices into apartments. The conversion of office space to living space with coworking in mind is a growing trend in American downtowns, offering progress on multiple levels.
Multifamily operators are being encouraged to incorporate coworking spaces into their developments, whether new designs or renovations. With 85% of U.S. apartments located in suburbs, investment in retrofitting existing spaces or building new ones to meet coworking needs is essential. Standard amenities such as high-speed internet access, smart Wi-Fi options, and 24/7 access management are key for coworking spaces. Providing quiet spaces for video calls and open areas for collaboration and connection is crucial for catering to the needs of remote workers. Designers are also exploring the use of soundproof “pods” and privacy pods in multifamily developments to create dynamic and adjustable coworking spaces.
In multifamily real estate, rent growth and renewals are essential for the success of operators. Coworking spaces are increasingly becoming a fundamental aspect of attracting and retaining renters. Hartman Design Group President, Phyllis Hartman, emphasizes the importance of incorporating coworking aspects into all new developments and repositioning projects, regardless of whether they are in urban or suburban areas. As the work habits of professionals continue to evolve, multifamily operators must adapt by incorporating coworking spaces that meet the changing needs of their residents.
