Co-working would seem like a corporate real estate executive’s best friend: it provides flexibility, lower costs, and employee (read, millennial) – friendly environments.

Is there a downside?

Gartner recently published a report, “Integrating Coworking Into Real Estate Portfolio Strategy” that discusses the other side of the coin.

Among the top three concerns that corporate real estate executives have with co-working: security, culture and cost. Yes, cost.

Physical security and data security are obvious issues in the co-working environment.

“Companies need secure networks that are difficult to hack and that can prevent data leak…Though people might not intentionally do it, open layouts and glass windows can lead to data and information leaks.”

It is similarly easy to imagine how a corporate culture may get lost in the culture of the co-working environment. One solution has been to create separate entrances and brand a defined area of the co-working space for the company that is using it.

But cost?

“Co-working is an attractive option for small and new businesses that do not have the necessary cash flow to lease an entire office floor. For large corporates, however, the situation isn’t the same,” according to Gartner.

“These companies tend to have the necessary cash flow to lease out a big space in a coveted location, and when they do the long-term math, this is a cheaper option than the one offered by co-working spaces, especially when they are looking beyond the hot desking membership.”