Kyiv – June 22, 2023 – CBRE Ukraine, in collaboration with the Ukrainian Coworking Association and andcards company, is pleased to announce the release of the results from the Second Ukrainian Coworking and Flexible Office Market Survey. This comprehensive research, conducted amidst the challenges of a full-scale invasion, provides a detailed assessment of the market’s current state, and examines the emerging trends shaping the industry’s landscape.
The project involved surveying 40 operators and owners of flexible offices, as well as 630 users of coworking spaces from 12 business sectors overall. Research covered 12 regional and smaller cities in Ukraine, making it the most extensive project in terms of market coverage since the beginning of the military aggression on Ukrainian territory.
The presentation of the results was held in both online and offline formats, hosted by representatives of the Ukrainian Coworking Association, CBRE Ukraine, and andcards at the NAT Coworking location in Lviv. Participants included members of the Coworking Association of Ukraine, partners, coworking space owners and market players.
According to the survey, only 16% of respondents view the war’s end as a crucial factor influencing their future business expansion. In contrast, a substantial 60% of participants highlighted the significance of stable occupancy rates (38%) and favorable landlord cooperation terms (22%) as the predominant drivers of their strategic decisions. Undoubtedly, the war influences all long-term decisions; however, this trend demonstrates the presence of companies in Ukraine that are willing to adapt to the new reality, sustain and grow their businesses, focusing on commercial indicators. This observation applies not only to coworking spaces but also to any Ukrainian business, including traditional offices. Landlords strive to retain tenants by offering flexible discounts and payment methods, and they are open to considering specific renovation requests to attract new clients.
This survey has been one of the most significant studies for us in terms of understanding the functioning of the commercial real estate market during the ongoing war in Ukraine. It is an unprecedented case, as it is the first time a project has been conducted under such circumstances. This provides us with unique insights and perspectives on how coworking spaces and the real estate market, in general, are adapting to challenging conditions and providing vital support to businesses and the community.
Despite the difficulties faced throughout the past year, coworking spaces have shown impressive resilience and steadfastness. Especially during the autumn of 2022, they played a crucial role in helping many individuals continue their work and activities. This underscores the importance of coworking spaces as modern work environments that can adapt to challenges and offer necessary support to their users.
Diana Kvitchuk, Head of Marketing and Research CBRE Ukraine
The survey results reveal a remarkable level of engagement from both coworking operators/owners and users, underscoring a profound interest in the research. As we extended our geographic reach to encompass 12 major and smaller cities in Ukraine, the market showcased its readiness to embrace transparency and collaboration, which have become increasingly important considering the pandemic and ongoing war. This is further supported by the research results among coworking users, with 35.7% of residents prioritizing collaboration and a sense of community when opting for a flexible work arrangement. This emerging trend is partly driven by a decline in social interactions over recent years.
However, it is important to note that the sense of community holds greater significance for small teams and individual entrepreneurs, while corporate entities remain focused on risk reduction associated with long-term lease agreements, capital expenditure reduction, and minimizing administrative costs related to office maintenance. Furthermore, it is worth highlighting that prior to 2020, the coworking format primarily appealed to individual entrepreneurs and small companies. However, during the COVID-19 pandemic, medium and large corporations also began recognizing the benefits of flexible work. In the context of the ongoing war and the need for heightened flexibility, this trend has further gained traction. Nevertheless, following a period of decreased situational demand for flexible spaces observed from October 2022 to January 2023, the occupancy rate in coworking spaces has stabilized at 50% to 60%, accompanied by a shift in the customer profile. In addition to IT and creative industries, we have witnessed growing interest from clients in traditional corporate sectors. This indicates an increasing number of companies acknowledging the advantages offered by flexible work environments provided by coworking spaces and expressing a desire to leverage their services.
Anastasiia Kachan, Senior Real Estate Advisor CBRE Ukraine, member of The Supervisory Board of UCA
CBRE Ukraine, as a partner and member of the Ukrainian Coworking Association, participated in the research for the second time. The company previously had the opportunity to collaborate with the UCA on the first Ukrainian Coworking and Flexible Office Market Survey in 2021, analyzing the state of the market during COVID-19 lockdowns.
