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