Why Coworking Spaces Are Here to Stay: 9 Reasons
Coworking spaces are the talk of the town due to their exponential growth—and one that encompasses workers from all types of businesses. Until the past few years, gig economy workers were the primary users of coworking office spaces. But this is no longer the case. According to a study by the Global Workspace Association, nearly half of users are small businesses, with only 20 percent categorized as freelancers. Surprisingly, the fastest growing demographic segment today are large enterprise businesses and companies. With mobile corporate users representing only 12 percent today, experts believe they will overtake the other two demographics in a few short years.
In just the past four years, the growth rates for coworking spaces have been exponential. The number of coworking spaces worldwide will more than double by the end of the year—from 8,900 in 2015 to almost 20,000 in 2020. The number of workers relying on coworking spaces is growing even faster—from a little more than half a million in 2015 to nearly 2 million in 2020—a 300 percent increase. A more granular look at the data reveals even greater growth factors—70 percent of existing coworking space operators plan to expand their areas.
This rapid expansion and adoption of coworking office spaces isn’t going to stop. A study by the Global Coworking Unconference Conference (GCUC) predicts the number of coworking spaces will nearly double to almost 31,000 and the number of workers using them will triple to 5.1 million in three years.
What is it that makes coworking spaces so attractive to workers, solopreneurs, small businesses, and even enterprises? Let’s take a quick look at some of the key reasons.
1. Lower Coworking Space
In addition to getting locked into long-term leases, the cost of permanent office space can be a huge financial drain for small businesses, with many spending upwards of 10 percent of their revenue on them. With coworking spaces being 331 percent cheaper than permanent office space, the low cost of a coworking space is a definitive driver behind the dramatic growth.
2. Social-Business Interactions
Coworking spaces offer businesses and workers an opportunity to interact with other businesses and professionals in the area. Working from a home office day after day can become professionally and socially stilting. For small businesses, working from a cramped office space without the opportunity to interact with other businesses and professionals can have the same effect.
3. Greater Workspace Flexibility
Getting locked into one location with a long-term lease can inhibit business growth. In some cases, it doesn’t make sense for a business or freelancer to work from the same location every day; customer and partner meetings take them to different locations, while others may not have a permanent home base and work from different cities—Los Angeles one week, Seattle the next week. Instead, with tens of thousands of office locations around the globe, coworking spaces provide the flexibility these businesses and solopreneurs need. In addition to the above, users of coworking spaces only pay for the space they need and use; those with permanent offices pay for the entire space—whether it is fully used or not. And when the full capacity of the office space is reached, further expansion of the workforce becomes a real problem.
4. Recruiting and Retaining Quality Workers
Workspace flexibility, which includes the use of coworking space, is something that workers increasingly cite as a critical factor they consider when evaluating employers; they want the ability to work remotely and from locations that shorten their commutes. This makes it easier to recruit and retain top-quality workers—something that is particularly difficult during a time of low employment.
5. Business Opportunities
Coworking spaces are full of businesses that are potential customers and partners. The relationships coworking space users form offer everything from new revenue possibilities to collaboration. Just as you may refer prospects to other coworking space partners, they likewise can steer customers in your direction. In other instances, collaborative relationships may result in reciprocal knowledge-sharing or even services delivery.
6. Lobby Greeters
For many small businesses with permanent office space, lobby greeters or receptionists are a fanciful dream. Visitors have no point of contact when they arrive, while workers are frequently disrupted when visitors arrive at the office. This isn’t the case with coworking spaces, where lobby greeters welcome guests and ensure they know the location of restrooms, parking logistics, among other questions they might have.
7. Professional Business Addresses
Coworking office spaces like those on Davinci Virtual typically come with virtual office addresses. With first impressions playing a critical role for any business, the ability to secure professional business addresses in locations that are the envy of other small businesses is pivotal.
8. Meeting Rooms
Meeting rooms in permanent offices often aren’t the right size—too small in some cases and too large in other instances. Meeting rooms, which are also part of the larger office space where a coworking space is located, can be used for internal employee meetings or those with customers or partners. Rented meeting rooms also come with the presentation and communications tools needed to facilitate successful business outcomes.
9. Day Offices for rent
Coworking spaces afford collaboration between workers. But sometimes the open confines of a coworking space are too distracting, and a day office is needed. Day offices are private and quiet, enabling workers to focus on projects that require their undivided attention.
With all these benefits and advantages, coworking spaces will be here to stay for many years to come for businesses of all kinds across all areas. Contact us to learn more about our coworking space offerings or browse our listings of coworking spaces.