A new report of The Coworking Industry, "Shared Space: Coworking's Rising Star" by Yardi Matrix came out last month (you can download it here). It is full of interesting data, insights, and trends that we want to share with you.
You can access the full report on the link above, however, we wanted to highlight some points, that show why we believe the coworking industry only has one way forward: it is rapidly increasing in popularity and by percentage of square footage in relation to total office space.
Below are a couple of the main highlighted industry trends from the report, that make coworking an attractive alternative to traditional workspaces:
- Growth in the gig economy: The number of workers who are self-employed has risen dramatically in recent years, especially those who lost jobs during the last recession and now work as consultants.
- Entrepreneurial workers: This category includes founders and employees of startups or SMEs.
- Remote employees: An increasing number of people now work remotely, which is possible because of all the available tools and technology that enables people to be connected and be productive. This helps companies attract talent without having to look for more space.
- Less commuting: Nothing is more useless and less productive than commuting for long periods of time. This is one of the main reasons of the boost in demands for coworking spaces. Nowadays, workers look for ways to improve their quality-of-life while at the same time reducing the impact that commuting has on the environment.
- Relaxed environment: Millenials (and not only them) tend to seek a more social work environment. Community-oriented features provided by coworking spaces include amenities like local food and drink providers, exercise facilities and social and networking events, and fun activities such as ping-pong tournaments.
- Cutting costs: As office spaces continue to grow, especially in city centers, companies try to reduce their footprint. Office space costs have been reduced with increase in popularity and adoption of coworking spaces. Companies are now using fewer offices with open work plans, cubicles are getting smaller, and the need for paper storage has diminished as files are stored in the cloud.
- Leverage corporations: This is also a growing segment of coworking demand. Large corporations employees can enjoy the flexibility that comes with having coworking space (community features) and also, strategically, large corporations can benefit from working on a more flexible agile way, by mimicking start ups and SMEs.
- Tax laws: Federal Accounting Standards Board rules also may play a role as, starting in 2019, companies must treat lease obligations as debt on their balance sheets, which gives incentive to avoid long-term leases.
We understand that coworking is not for everyone, and that traditional office spaces will always exist. But as the world evolves, and the number of entrepreneurial and remote employees continues to grow, coworking, is the alternative that can help attract talent, while improving work satisfaction and also enabling companies to continue to reduce the long-term fixed costs associated with fix working spaces.
Now that you know more about coworking spaces, and why they could be a good alternative or solution for you, you are probably wondering where you can begin your new journey. Come and discover our new coworking space: OneCoWork Plaça Catalunya, we will be opening our doors at the end of May 2018. Get in touch to secure a space for you and your team!