The expansion of coworking has gone hand in hand with the growth of the global tech sector, Savills said.
“Coworking providers accounted for 13% and 13.5% of office market take-up in London and Dublin respectively in the first nine months of 2018. The sector is rising fast globally, but there is room for growth. Even in US markets such as Manhattan, total coworking space is estimated at just 2% of total office stock.”
Private offices, offering the benefits of coworking (flexible leases, amenity provision), but with individual space for the occupier, is the coworking subsector rising fastest.
Costs are highest in San Francisco where the supply/ demand imbalance is most acute. Some markets appear good value by comparison, notably Amsterdam, at $380 per month.
Savills noted that mainstream residential rents matter because they are a factor in where young talent decides to settle.
In San Francisco residential rents have grown faster than capital values in the last decade, in spite of rent controls, and are the highest of our Tech Cities at $720 per week. New York is more expensive for real estate costs overall, but renters have more affordable, but still commutable, options in the outer boroughs.
Several European centres compare favourably. Barcelona ($250 per week) and Berlin ($200 per week) offer relatively affordable rental accommodation. Cape Town ranks favourably, at $280 per week.