Another Sign Brick-And-Mortar Retail Hasn’t Lost Its Appeal: Coworking Spaces Are Eager To Get In

by MR Magazine Staff

The drumbeat of retail store closings and struggles has dominated news headlines, led by Toys “R” Us’ recent closing of its entire U.S. store fleet. While the closings of underperforming retailers are far from over, the brick-and-mortar retail sector can take some comfort in the fact that it still holds plenty of appeal: Just look at the crop of coworking spaces, housing retailers’ coveted millennial customers, that are eager to move in. Coworking space in malls, street fronts and other retail properties will grow at an annual rate of 25% through 2023 to reach about 3.4 million square feet, commercial real estate research firm JLL wrote in a study published Thursday. How significant is that? The average annual growth rate in occupied retail square footage between 2010 and 2017 was just 0.9%, JLL said. “Coworking presents a viable solution for vacant retail space by decreasing vacancy and driving additional foot traffic with a guaranteed daytime population,” the research firm said in its first-ever study looking at 75 U.S. coworking retail spaces, totaling one million square feet. “Added foot traffic may also help revitalize the center and attract new retail tenants.” Read more at Forbes.