{"id":1004257355,"date":"2018-08-14T08:26:28","date_gmt":"2018-08-14T16:26:28","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004257355"},"modified":"2022-12-08T10:07:30","modified_gmt":"2022-12-08T18:07:30","slug":"a-coworking-pioneers-prediction-exponential-growth","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/a-coworking-pioneers-prediction-exponential-growth\/","title":{"rendered":"A Coworking Pioneer\u2019s Prediction: Exponential Growth"},"content":{"rendered":"<p>By Alexandra Pacurar<\/p>\n<div id=\"attachment_1004257532\" style=\"width: 310px\" class=\"wp-caption alignright\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/08\/Marcus-Moufarrige.jpg\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1004257532\" data-attachment-id=\"1004257532\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/a-coworking-pioneers-prediction-exponential-growth\/marcus-moufarrige\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/08\/Marcus-Moufarrige.jpg\" data-orig-size=\"800,620\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}\" data-image-title=\"Marcus Moufarrige\" data-image-description=\"&lt;p&gt;Marcus Moufarrige, COO, Servcorp&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;Marcus Moufarrige, COO, Servcorp&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/08\/Marcus-Moufarrige.jpg?w=800\" class=\"wp-image-1004257532 size-medium\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/08\/Marcus-Moufarrige.jpg\" alt=\"Marcus Moufarrige, COO, Servcorp\" width=\"300\" height=\"233\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/08\/Marcus-Moufarrige.jpg 800w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/08\/Marcus-Moufarrige.jpg?resize=300,233 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/08\/Marcus-Moufarrige.jpg?resize=768,595 768w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><p id=\"caption-attachment-1004257532\" class=\"wp-caption-text\">Marcus Moufarrige, COO, Servcorp<\/p><\/div>\n<p>Flexibility is still a buzzword in the office sector, and the coworking market is far from peaking as more operators are <a href=\"https:\/\/www.commercialsearch.com\/news\/breaking-up-with-cubicles-a-guide-for-investing-in-coworking-spaces\/\">entering the space<\/a>. Servcorp, founded 40 years ago in Australia, is a pioneer in the shared office space business. The company has grown into a global provider with 160 locations around the world, including 22 in the U.S. With decades of experience in what was once a niche segment, Servcorp plans to stay ahead of the game. Marcus Moufarrige, COO of Servcorp, outlined a few challenges and future workspace trends in an interview with <em>Commercial Property Executive<\/em>.&nbsp;<\/p>\n<p><strong>Servcorp was one of the first players to enter the coworking space. How has the business changed since then?<\/strong><\/p>\n<p><strong>Moufarrige:<\/strong> Surprisingly, the key principles of coworking have not changed in 40 years. Servcorp was a pioneer of the shared office space economy and fundamentally has provided companies and employees with flexibility in the spaces they work in, which typically are very inflexible. More so, the biggest change I\u2019ve seen is the mentality of tenants, and what they expect from an office space.<\/p>\n<p>At its inception, Servcorp was just a rent arbitrage business, as many coworking operators still are. Today, we are driving a much larger change by supplying companies with flexible workspaces and sophisticated technology, enabling them to lean on us and ultimately expand their businesses globally. In 1990, 97 percent of Servcorp\u2019s income came from rent arbitrage. Today, that (figure) has dropped to less than 40 percent.&nbsp;<\/p>\n<p><strong>Could you name a few emerging coworking markets in the U.S.?<\/strong><\/p>\n<p><strong>Moufarrige:<\/strong> This is a little bit like asking me to name emerging markets in Asia. Despite the fact that New York is quite saturated with coworking operators, coworking is emerging in several regional markets across the country. Currently, <a href=\"https:\/\/www.commercialsearch.com\/news\/shared-space-coworkings-rising-star\/\">flexible workspaces<\/a> occupy less than 5 percent of all commercial office space. I predict that in 5-10 years, this percent will jump to 20-25 percent.&nbsp;<\/p>\n<p><strong>As an active player in the coworking office sector, what challenges are you dealing with at the moment, and how do you plan to overcome them?<\/strong><\/p>\n<p><strong>Moufarrige:<\/strong> Servcorp has always been a premium player in a niche market. The flexible workspace market was a niche at our inception, but today it is mainstream. Our biggest challenge comes from this industry shift. We\u2019ve been forced to reevaluate how to channel our unique advantages into our premier locations, service employees and our global technology platform.<\/p>\n<p><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/08\/Interview-quote-CPE-Marcus-Moufarrige.jpg\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"1004257535\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/a-coworking-pioneers-prediction-exponential-growth\/interview-quote-cpe-marcus-moufarrige\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/08\/Interview-quote-CPE-Marcus-Moufarrige.jpg\" data-orig-size=\"827,221\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;Patricia Todoran&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1497549143&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}\" data-image-title=\"Interview quote CPE Marcus Moufarrige\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/08\/Interview-quote-CPE-Marcus-Moufarrige.jpg?w=827\" class=\"aligncenter wp-image-1004257535 size-full\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/08\/Interview-quote-CPE-Marcus-Moufarrige.jpg\" alt=\"\" width=\"827\" height=\"221\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/08\/Interview-quote-CPE-Marcus-Moufarrige.jpg 827w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/08\/Interview-quote-CPE-Marcus-Moufarrige.jpg?resize=300,80 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/08\/Interview-quote-CPE-Marcus-Moufarrige.jpg?resize=768,205 768w\" sizes=\"auto, (max-width: 827px) 100vw, 827px\" \/><\/a><\/p>\n<p><strong>Could you please outline three trends in the office sector?<\/strong><\/p>\n<p><strong>Moufarrige:<\/strong> The first is that the number of flexible office spaces is growing rapidly and will continue to rise throughout the office space industry.&nbsp;The second is that landlords are acting less superior to their tenants. Today, tenants are treated as legitimate customers whose concerns and options matter.<\/p>\n<p>The third and final relates to PropTech. Tenants will continue taking back much more control over office space amenities and productivity. Additionally, landlords are beginning to work toward creating a strong sense of community in workplaces.<\/p>\n<p><strong>What are Servcorp\u2019s goals going forward?<\/strong><\/p>\n<p><strong>Moufarrige:<\/strong> Servcorp\u2019s goal is to continue serving as the world\u2019s premier flexible operator. Currently, Servcorp is the only global operator with a seamless workspace platform, which is what attracts progressive landlords who understand our technology and the benefits it yields.<\/p>\n<p><em>Image courtesy of Servcorp<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Servcorp has been in the coworking business since the sector&#8217;s inception. These days, the company\u2019s COO, Marcus Moufarrige, is examining the changing landlord-tenant relationship and its potential to fuel the segment&#8217;s continued expansion.<\/p>\n","protected":false},"author":236,"featured_media":1004257532,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21784,21808,23891,21742,21747,21744],"tags":[40476,42461,41564,34479],"class_list":["post-1004257355","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-brokerage","category-featured","category-national","category-latest","category-office","category-people","tag-cpetalks","tag-coworking","tag-marcus-moufarrige","tag-servcorp"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>A Coworking Pioneer\u2019s Prediction: Exponential Growth - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/a-coworking-pioneers-prediction-exponential-growth\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Coworking Pioneer\u2019s Prediction: Exponential Growth\" \/>\n<meta property=\"og:description\" content=\"Servcorp has been in the coworking business since the sector&#039;s inception. 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