Businesses that need to draw in and retail new talent to their organization’s workforce are looking at modern alternatives that focus in on housing as a way to foster corporate attraction. Co-living community projects are a growing sector in today’s corporate housing options that blur the lines between residential and commercial real estate. These investments are being adopted by many organizations across the world that are looking to build housing and residential incentives into their employee benefits as bonus “compensation.” Whether offering their employees the option to lease or buy-into the co-living properties, companies are eliminating much of the barriers that can stop new talent from relocating for career opportunities.
Although locations that are positioned in the heart of today’s industry are well saturated with talent pools and skilled workforce, many qualified job seekers that are not already employed are unable to afford living in locations such as New York, Los Angeles, or Boston where housing prices are sky-high and availability is limited. Companies face the growing issue of bringing talent inbound when living costs far exceed what average employees are able to incur when relocating for work.
This factor has pushed leading corporations to consider co-living development as a way to create and connect together an employee network that is sourced outside city limits. And professionals are taking advantage of these accommodations to live and work in the locations they desire but can not afford. Not only are they being provided with discounted housing, residents are having necessities provided such as furnishings, utilities and expansive on-site amenities with vibrant social scenes.
“The firms focused in building out these types of commercial investments are targeting areas throughout the US that have thriving industries, corporations and professional heartbeats while also being locations that are hard for employees to relocate to.” shares founder and CEO of Western Rim Properties, Marcus Hiles who has developed over 25,000 rental property units in top US cities throughout his 30 year career. Many firms see co-living as a gateway to expand and improve their talent base more easily and faster to ultimately be more competitive and diverse in their relative market. Much like organizations such as WeWork who have dominated and revolutionized office space designs with co-work buildings, co-living firms are banking on their properties reaching max capacity year after year as long as real estate markets remain high. Not only offering their tenants affordable housing options that often come in around 20-30% less than comparable properties in the area, co-living units will also earn developers higher income per square footage than they see with conventional spaces.
With these trends growing and the bottom line enticing professionals, organizations and developers to keep co-living expansion on the rise, it is predicted soon many US cities will be home to a growing base of co-living developments. “Much like the rental industry has evolved from offering standardized apartment options to now high-end community complexes, it is to be expected that cross-over from commercial investors would come into housing markets.” shares Marcus Hiles. As we watch these properties transition from test models to viable projects, it will prove if co-living really is a long-term solution to a growing issue felt across the country.