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What’s next for co-working?

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Co-working space has been the buzz word lately. From Fortune 500 to budding entrepreneurs, we can see businesses inching to a co-working space. And why shouldn’t they? A co-working space offers stability, customizability, flexibility, visibility and luxury at an unbeaten premium.

In this current COVID-19 scenario where businesses are constantly searching for ways to diminish the operational cost, a co-working space seems to be a picture-perfect companion. But even with such great perks a co-working space offers, it’s an industry that’s awaiting exploration by every business.

Let’s see what does the future holds for co-working space, and how can you leverage the benefits of a co-working space?

Statistics

Number of institutes

In the year 2018, there were only 16,599 co-working spaces in the entire world, but since then, to now, the figures have progressed to 19,421. Analysts predict that by the year 2021, there would be 23,548 co-working spaces, and by the year 2024, the figures would have surpassed 41,000. From these figures, it’s easy to conclude the growth rate to be 21.3%.

Number of people operating

Surprisingly COVID-19 hasn’t affected the industry much, but in fact, it has only uplifted. This is because every business is looking to lessen the operational cost and a co-working space offers all the benefits at a lower premium. In the year 2018, only 1,650,000 people were availing the benefits of a co-working space. Now in the year 2020, a whopping 1,933,331 people are operating from a co-working space. And by the year 2024, there would be 4,993,910 people housed a co-working space. And this would be a 158% gain since the year 2020.

Suggested Read: Experience success and comfort with our managed office spaces

 Landlords Overview

When there’s an increased volume of love exhibited by businesses, the landlords are in no mood to stagnate. Even with the pandemic, 77% of landlords are positive about ballooning. This only assures us one thing, and that is co-working is here to stay and dominate.

Regional Demographics

With the US being at the top of the list to house 3762 co-working offices, India is at the second spot with 2,197 co-working offices. Then there is the UK, Spain and Germany with a total market share of 13.5%. India currently holds a 10.69% market share lagging behind the US with only 7.6%. Due to the start-up India movement, it has seen the fastest-growing rate in the entire co-working market. With every business looking to have a share of the Indian market, there would certainly be more co-working space coming in the future.

Cost per head

With an increased supply by the competition and the will to sustain & dominate, the prices keep dropping. The global average price in the year 2018 was $204, and since then to now, the prices have dropped to $183. And this trend is expected to prolong for the next 5-8 years in the curve.

Also Read: How to get maximum buy in for your office move?

So, why does the above statistics concern you?

When you’re searching for office space for your business and decide to go for a co-working style office rather than a conventional office, then you must know what you’re stepping into.

Making a decision based on statistics is always informed and the right decision.

Now, that you know, the future of doing business lies in co-working space, and even then if you go for conventional office space, then it wouldn’t be aptly correct.

Why?

  1. A co-working space offers you customizability, flexibility and agility which conventional office space is reluctant about.
  2. The conventional office space comes on per square basis while a co-working space is accessible at per employee basis.
  3. The branding opportunity is limited in a conventional office.
  4. A co-working space offers you a creative space and a large community that you can leverage to network.
  5. A co-working space costs you much lesser than conventional space.

But this also doesn’t mean that a conventional space is inferior. When you’re looking for a headquarter for your office space, then you would never opt for co-working space because you want the complete authority of your workspace.

So, it depends on what operational goals are you seeking to achieve with the leased space.

Also Read: Reimagining the workspace after Covid-19

When you must leverage co-working space?

For this, let’s assume you have a team of size ranging from 30-400 employees, and you’re certain about the fact that you will be growing shortly. Now you have two options, one is, either get a conventional office space or go for a co-working style. Opting for a co-working style can help you customize your office space, ands save exponentially great on leasing charges.

But if your business has scaled to multiple nations, and you’re looking for a headquarter, then you must not go a co-working style as this will not be authoritative. But you can certainly look for a co-working style office in the nation you’ve scaled to because not every time you will be getting yourself a headquarter, right? Moreover getting a co-working space in that nation will help you save a huge sum.

Epilogue

Now that you know what the future of co-working space holds and when you must get a co-working office. You can make an informed decision. Let us know what type of office space you’re getting for your business in the comment section.

 


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