Propmodo Daily

By Franco Faraudo · Apr. 26, 2024

Greetings!

Office occupancy remains below pre-pandemic levels as millions of Americans opt to work remotely, often from locations like coffee shops. But, this influx of office workers hasn't been universally welcomed. In today's email, we explore the growing trend of coffee shops and restaurants pushing back against people who treat them as their new workspace.

Downtowns continue to grapple with the pandemic's impact, particularly within the retail sector. To address this, cities are shifting away from temporary fixes and exploring conversions of vacant spaces. In a new article, we delve into retail conversions, which—while potentially costly and subject to regulations—hold the potential to breathe new life into struggling downtowns.

Cut through the doom and gloom about the office market. Discover the cities defying expectations and thriving amidst change. Join our Propmodo Live webinar on May 7th for "Which Cities Are Still Thriving Even With Low Office Occupancy?" and find the strategies that work. Register now.

This week in Propmodo Technology, sponsored by investment management platform InvestNext, we focus on asset and investment management trends. We'll discuss AI's role in investor relations, the emergence of real estate DAOs, and how tech platforms empower investor growth.

Now, let's dig in!

The Return to Office Has a New Ally: Coffee Shops

Office attendance across the nation is on the rise, yet it remains significantly lower than pre-pandemic levels. Many employees have become accustomed to the convenience and flexibility of working from home, and attempts to bring them back to traditional office settings have had mixed success. Instead of boardrooms and cubicles, many now work from bedrooms or local coffee shops, adapting any available table into a makeshift office.

This shift has been beneficial for employees who enjoy the flexibility, but it has posed challenges for the venues they frequent. Coffee shops, in particular, have become central hubs for this work-from-anywhere trend. As their popularity as workspaces has surged, some have started to implement measures to manage the influx of customers who use their tables as full-time offices. Online platforms like Reddit are filled with discussions on how these establishments can and should manage these "campers."

To manage the issue, coffee shops have developed a range of strategies. Some have implemented minimum order requirements, while others enforce seating time limits. A few have gone so far as to limit laptop use, either entirely or during busy periods, to free up space for other customers. Additionally, new technologies are being created to aid these establishments in maintaining control over their spaces. For instance, internet hotspot providers are developing tools that can impose time limits on users' access.

Innovations include integration with Point of Sale (POS) systems, allowing coffee shops and restaurants to sell internet access by the hour when needed. These measures are transforming coffee shops into the new offices of today, although not all are welcoming this shift. Especially in bustling locales or those aiming to foster a social vibe, many are resisting the transformation into a workplace for hybrid workers seeking a third space between home and office.

This evolving landscape could potentially revive the office market. Co-working spaces stand to gain the most, as they are a natural alternative for individuals who currently work from coffee shops but do not have access to a formal office through their employer. These flexible spaces could capture a significant portion of this growing demographic.

While some coffee shops enjoy the increased business from daytime patrons, others prefer traditional customer turnover. These establishments are less enthusiastic about hosting prolonged work sessions and virtual meetings, reflecting a divide in how these community spaces view their role in the new work-from-anywhere culture.

Adaptive Reuse

Insider Insights

Overheard

Propmodo Technology: Asset & Investment Management

Reach over 70,000 commercial real estate professionals when you collaborate with Propmodo. For info, email [email protected].

Popular Articles

Are You Enjoying This Newsletter?

Propmodo Daily is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

📧 Forward it to a friend and suggest they check it out.

🔗 Share a link to this post on social media.

🗣 Have ideas for future topics (or just want to say hello)? Share your feedback and tips at [email protected] or connect with us on X through @propmodo.

✅ Not subscribed yet? Sign up for this newsletter here.

📫️ Please add our newsletter email, [email protected], to your contacts to make sure you don’t miss any updates.

Explore Propmodo

• Read exclusive articles about a variety of topics, including Real Estate, Workplace, Buildings, and Development.

• Browse our collection of interactive Propmodo Research e-books.

• Sign up for upcoming Propmodo Live Webinars or watch past Propmodo Live videos on-demand.

• Dive into Propmodo Technology articles, podcasts, and short videos about the future of commercial real estate.

Enjoy reading about trends and innovation in commercial real estate? Subscribe to Propmodo.com for unrestricted access to reliable, data-driven journalism and exclusive insights available only to subscribers.

Interested in sponsoring this newsletter? Email [email protected]