The local effects of new workspaces: Analyzing the relations between coworking spaces and the real estate market in Shanghai

The ‘Third Space’ theory explains the unique appeal of coworking spaces (CWs) for freelancers and independent workers. This study analyzes the relations between CWs and the real estate market in Shanghai, illustrating their local impact. With a database of 861 CWs in Shanghai, this paper evaluates the spatial distribution and pricing of these spaces concerning residential and office real estate prices and rents. By employing spatial analysis and statistical methods, the study indicates a concentration of CWs in Shanghai's city center, where prices are higher, compared to a less concentrated distribution in the suburbs, where prices are lower. The study demonstrates a significant correlation and spatial autocorrelation between CWs and both residential and office real estate. The findings suggest that CWs located in or near high-end residential areas and high office rental areas in the city center are economically viable, promising a greater return on investment. Meanwhile, CWs offer a way to repurpose underutilized resources in corporate real estate strategies. In addition, the study hypothesizes that CWs can also be viewed as potential influencers of the real estate market. These insights hold value for urban planners, investors, businesses, and residents.