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The retail scene in the Middle East is known for its vibrancy and dynamism, boasting a diverse array of shopping malls and commercial spaces. Although, shifting consumer preferences and the surge of e-commerce, retail property operators now confront novel challenges. However, the emergence of shared workspace and coworking in the Middle East represents a unique opportunity for retail. With a fresh perspective and new services, both businesses and consumers can benefit and meet the changing demands in workplace culture.
Shared workspace and coworking, has gained popularity worldwide for its flexibility, cost-effectiveness and creating a collaborative atmosphere. The UAE is in its growth stage within coworking and is expected to reach $13.03bn in 2025 at a CAGR of 12 percent.
When we look at future real estate development, it’s often seen as combining every asset class under one roof. By bringing the dynamic environment of coworking into the heart of retail spaces, you create a unique synergy where shoppers and workers coexist, fostering a vibrant ecosystem that benefits all parties involved.
Coworking in the Middle East
Coworking spaces are increasingly being set up in vacant mall areas, frequently integrating retail components into the coworking experience. In Dubai, an area within Emirates Towers has been successfully repurposed from retail space to accommodate the Youth x Hub, as reported by Deloitte. Following its successful launch in Abu Dhabi in 2020, it expanded to Circle Mall with its first branch in Dubai.
Cloud Spaces is another example of one of the first coworking spaces in the Middle East located within a shopping mall. It opened its doors at Yas Mall in Abu Dhabi, establishing Yas Mall as the first shopping centre in the area to embrace this innovative concept within its premises, as featured in Arabian Business.
Diversification of Revenue Streams
One of the primary advantages of integrating coworking spaces within retail properties is the diversification of revenue streams. Coworking spaces offer flexible lease terms, allowing businesses to adapt quickly to changing market conditions. Retail property operators can leverage vacant units or underutilised spaces and convert them into flexible workspaces that cater to remote workers, startups and even established businesses looking for satellite offices. This agility can lead to a higher occupancy rate and reduced vacancy periods. Furthermore, this influx of foot traffic not only increases the potential customer base but also enhances customer engagement.
Enhanced Customer Experience
The integration of shared workspace can elevate the overall customer experience within retail properties. Modern coworking spaces often prioritise aesthetics, comfort and functionality. This means that visitors not only have access to a productive work environment but also benefit from the ambiance and services offered. Retail property operators can curate a seamless experience where visitors can transition from shopping to working to socialising, all within the same location.
Community Building
Creating a sense of community is crucial for the success of any commercial property. Shared workspace and coworking foster a unique sense of belonging among coworkers who share the same location. Retail property operators can capitalise on this by organising networking events, workshops and seminars that facilitate interaction between retail businesses, coworkers and customers. This sense of community can lead to increased customer loyalty and word-of-mouth promotion.
Data Insights for Targeted Strategies
Adding coworking spaces to your shopping mall can provide valuable data insights property operators can leverage to refine their strategies. By analysing foot traffic patterns, peak usage hours and preferred amenities, operators can make informed decisions about tenant mix, marketing campaigns and facility improvements. This data-driven approach ensures that retail properties stay aligned with the evolving needs of their customers.
Economic Efficiency
Coworking spaces can also contribute to economic efficiency for property operators. With the additional rental income, you can outweigh the operational costs of maintaining coworking spaces. Additionally, you can optimise the shared infrastructure, such as reception services, security and utilities for retail and coworking spaces, resulting in further cost savings. This efficiency translates to better financial stability for the property.
Incorporating Technology for Seamless Integration
The success of integrating coworking spaces into retail environments hinges on the seamless incorporation of technology. Retailers can leverage cloud-based solutions, such as Yardi’s, to optimise operations and enhance the customer experience. Technology can help manage the shared workspace more efficiently. From booking systems for workspaces and Wi-Fi management to asset management and accounting. Retail operators can also evaluate current and future occupancy with visual floor plan graphics, utilise automation and gain better analytical insights.
Expand into Coworking in the Middle East & Streamline Operations with Yardi
Yardi develops and supports industry-leading investment, asset and property management software for all types and sizes of real estate companies. Our technology helps you meet the challenges of tomorrow, today. Our unified solutions optimise property and asset management and investment performance with in-depth data and predictive insight.
With Yardi’s solutions, you can efficiently manage and optimise both coworking spaces and retail revenue through one platform. Our cloud-based software allows you to centralise your data and automate workflows to help property managers work more efficiently. Furthermore, you can reduce costs, improve your ROI and maintain successful retail centre operations.
