"The Third Space" is a term used more and more frequently by real estate insiders. Sure we all know what a "home" or "apartment" is. We all understand "office", "store" or "warehouse". So what in the world does this magical and mystical "third space" term mean? After all, is being bantered around so much these days we really should recognize it for what it is. The easy way for most of us to understand the "third space" reference is to recognize that it refers to common gathering space that is not "home" or "work".

The third space is space where people carry on their lives in a location outside of their home or apartment and not at their working environment. This is space where people congregate for social, recreational, or entertainment reasons. In an office complex this may be the courtyard, break room, lounge, or gym. In an apartment complex it may be the club house, game room, or BBQ area.

As homes and apartments become smaller and more utilitarian, the third space becomes more and more vital to the overall success of a project. Likewise, commercial third spaces are becoming ever increasingly critical. The placement of a Starbucks in an office building, a boutique eatery in a PUD or condo development, or a game room in a hotel are all important third spaces.

The evolution of our population with younger more technology dependent individuals has placed a high demand on these spaces. It has also placed a critical need for these spaces to be user friendly for any and all technology. It is imperative that these spaces have WiFi capabilities, entertainment offerings like flat screen TVs and possibly personal amenities like iPod docking stations.

Third spaces are fast becoming a critical portion of any real estate development or operation. Sales of condominiums, rentals of apartments and leasing of commercial footage are all improved by functional third spaces made available for the users. It would be wise for anyone interested in building, buying or operating real estate to consider carefully the possibility and impact of a third space on their property.