Coworking spaces have grown in popularity enormously in recent years.
They’ve gone from being a niche option for independent workers and small start-ups, to becoming one of the most desirable workspaces for a breadth of businesses and employees alike.
As more businesses are opting for cost-effective hybridisation solutions that meet the demands of the modern workforce, the need for new coworking spaces is on the rise. In the first quarter of 2021, it was revealed that the majority of companies utilising WeWork’s coworking spaces were corporate businesses.
Having initially appealed to solo entrepreneurs and small-scale start-ups, the idea of coworking is now a widespread solution that larger corporates are getting in on: as flex space to accommodate growing headcounts and new teams; as a way of breaking into new geographies with minimal set-up costs; as a way of connecting with the interesting ventures and talented individuals that occupy these spaces.
With pricing models ranging from designated spaces to individual memberships with globally flexible access, and even on-demand solutions, coworking spaces offer something for everyone, and can easily be tailored to the needs of different organisational profiles and use cases.
Understanding the opportunity for coworking providers
Now is a good time for businesses looking to break into the coworking spaces market. If you’re looking to develop your own coworking space, there’s a lot to consider in ensuring you get it right. Most spaces aren’t profitable in their first year, and so you need to plan an offering with enduring appeal and the ‘stickiness’ factor that will keep your clients coming back.
Designing a successful coworking space involves curating appealing workspaces for a range of situations and audiences, with careful consideration of the needs of the people and teams that use them.
Coworking spaces explained
Coworking spaces are dedicated areas that incorporate a range of workspaces which can be rented flexibly by individuals and teams, who only pay for the space and time they need. These are designed with a range of amenities that suit a variety of companies or individual workers, all in one building. Many coworking spaces provide monthly subscription services, while others can involve more long-term rental fees. Coworking subscription levels can include:
- Part-time hot desk use
- Dedicated desks
- Private individual offices
- Office suites
- On-demand workspaces
- Global access office spaces
The coworking concept offers a host of benefits, for both users and providers:
- Using coworking spaces
Businesses that provide their workforce with coworking memberships enable employees to filter in and out of on-demand spaces as they need. Coworking spaces offer shared amenities for their users, reducing business costs while providing flexibility and networking and collaboration opportunities.
- Developing coworking spaces
With demand on the rise, coworking space provision is a growth market, with existing providers expanding their portfolio, along with a growing number of developers looking to start up new coworking ventures to meet demand.
- Monetising extra office space
A business with surplus office space may choose to develop a coworking area themselves. They can then sublet the transformed coworking spaces out to businesses as required. This is an appealing solution for those looking to turn a profit on extra office space they no longer need, instead of giving it back to the landlord.
When thought through and planned properly, a coworking space can provide a host of benefits to both the provider and the user. In our next blog, we’ll go further into the detail of how your business can benefit from adopting the model, helping you to quantify and understand how the approach could work for you.
Office workspace can help you create an innovative coworking environment
At Office Workspace, we’re experts in developing modern office spaces that enhance productivity, creativity and collaboration while reducing costs.
As a multi-generational, family-owned business, we’ve refined our methodology over the years to provide our clients with best-in-class solutions, services and support. As attitudes to the workplace evolve, so do we, and this is reflected in our approach to the workspace. Fusing data-led practicality with our unwavering creative vision, our coworking developments are designed for success.
If you’d like to discuss how our coworking space solutions could work for you, please call our team on 020 8309 0000. Alternatively, you can get in touch via our online contact form.