The Sharing Economy and Corporate Real Estate

CoreNet Global Report: Corporate Real Estate Needs to Become Flexible and Immediate – As the “shared economy” — one that is based on collaboratively leveraging underused assets — begins to take root, corporate real estate executives should be prepared for dramatic changes in the way space is viewed, acquired and used, according to a new report from CoreNet Global, “Too Much Information: The Sharing Economy and Its Influence on Corporate Real Estate.”

“While elements of the shared economy are certainly not new,” said Craig Van Pelt, Director of Knowledge Community Research at CoreNet Global, “what has changed is that direct contact between the supplier and customer via an online platform is becoming increasingly frictionless. The core of the sharing economy is embodied by a paradigm shift from one that is driven by ownership to one that is driven by access.”

Since a key tenet of the shared economy is maximizing under-utilized resources, the implications are dramatic for corporate real estate, which is one of the most underutilized physical assets. This will have ramifications in all areas of the profession, including workspace, finance, and peer-to-peer property rental, Van Pelt said.

Evidence of the sharing economy is being revealed across different economic sectors:

  • Agriculture – community gardens, farm equipment sharing
  • Finance – crowdfunding, virtual currencies
  • Transportation – ride sharing
  • Real estate – collaborative workplaces, hoteling
  • Media – streaming media and shared wireless plans

The report concludes “as CRE professionals plan for future space requirements, understanding the needs of the people that will occupy those spaces and the different options available to house those people will help to inform those decisions. Not only delivering the right amount of space, but it will be imperative to deliver the right type of space that encourages interaction and aligns with how and where people want to work… The real-time information and access that the sharing economy is enabling allows for flexibility and immediacy, which is something real estate has not historically offered.”

To view the full report, click here.