Three Coworking Trends to Watch for in 2018 (+ infographic)
In 2005, a small group of unaffiliated, creative individuals came together to experiment what it would be like to work alongside each other in a shared environment called Spiral Muse. Today, the number of coworking spaces exceeds 10,000 worldwide. Found in over 150 countries across six continents, they cater to a mixed bag of small business owners, sole traders, and corporates.
The rise of coworking spaces in Australia
The concept has also taken off in Australia. By the end of 2017, more than 300 flexible workspaces were operating nationally (up from just 60 in 2013). And this number is on the rise with Sydney and Melbourne now home to over half (58%) of all Australian coworking spaces.
Interestingly, coworking spaces are not just an inner-city phenomenon. Though 53% are located in CBD or inner metro areas, an impressive 35% are found away from major economic hubs, suggesting they support specific lifestyle choices.
The benefits of coworking
Coworking comes with a list of features and benefits as long as your arm. Here are just a few:
- Boosted productivity – This is one of the most significant advantages of coworking. Approximately 74% of coworking members report being more productive when working in collaborative facilities. This is likely due to higher morale, a sense of community, the chance to work alongside like-minded individuals, and the ability to match environment and hours to the work being carried out.
- Networking opportunities – Coworking is like working in a little community; a place where all shapes and flavours come together with one common interest: to build a better business. It’s the perfect environment for networking with like-minded professionals, or for meeting new clients or investors. In fact, 71% of coworking space members collaborate with other members, 80% achieve business growth and 91% gain business insights from other members.
- Spaces come fully equipped – Coworking spaces are designed with flexibility and functionality in mind. They shed the need for expensive fit-outs, come with office furniture and equipment, rid the stress of property management and reduce overheads. Many coworking spaces also provide things like security, services, meeting rooms, break out areas, and information technology to help you run your business.
Three trends to watch for in 2018
1) Expect to see a rise of coworking spaces within office buildings
This year, we expect to see a rise of flexible workspaces within office buildings. For strata owners targeting the smaller occupier, this could mean more competition as potential tenants weigh up the pros and cons of coworking versus leasing a small suite.
2) Coworking providers will start targeting major corporates
This is one of the more interesting trends that we are seeing.
Until recently, providers have been marketing to freelancers and startup companies. However, over the coming years, we will see a growing number of companies embracing coworking as a business tool to:
- enhance the productivity of their increasingly mobile and flexible workforce
- remain innovative
- collaborate with top talent
- reduce commercial real estate costs
- stay on top of potential disruptions within their industry.
Large corporations, such as Google, and some Australian and US banks, have already made the shift, with some even investing in their own facilities. In the 16/17 financial year alone, WeWork cited a 360% increase in members from enterprise companies. Other reports show that, by 2020, 65% of companies expect to use coworking as part of their business portfolio and 40% of the workforce will be temps, independent contractors or freelancers.
3) Increase in subleasing to coworking providers
We also expect to see an increase in tenants subletting their vacant or unused space to coworking providers. Strategy-wise, this gives the sublessor/main occupier the option to keep additional space for future business growth. It also allows them to collaborate and network with the businesses the providers bring in.
Become a coworking member
If you are looking for a friendly and proactive coworking environment for yourself or your team, get in touch with the team at Tenant CS.
We will deliver up-to-date insights into collaborative spaces and provide you with the best market options according to your requirements. Don’t delay – contact us today to see how you can incorporate coworking facilities into your real estate portfolio.