Every once in a while, a new concept hits the marketplace that is so innovative, companies both big and small can't help but sit up and take notice. Coworking space, as simple and straightforward as it is in thought, is just such an innovation as it continues to leave its mark across a variety of different industries and organizations.
This isn’t the first time TenantBase explored coworking, already discussing its ability to meet the evolving demands of the modern workforce which are less about financial metrics and more about people by the day. That isn't to say, however, that an emphasis on both numbers and team members can't coexist.
From the smallest of startups to the largest of global corporations, the numbers behind the ever-growing success of coworking space in the modern workplace only validates what TenantBase has been saying – workspace that is flexible by nature is a good fit for today's people-centric workforce, only growing in relevance and importance with each new day. Organizations striving to attract and retain talent, flex to the demands of a constantly shifting marketplace, and establish a critical team-oriented perspective are well-served embracing the many benefits afforded by coworking office space.
A quick snapshot of the significant impact coworking space is having on the market should be all the convincing needed to recognize its immense power to leverage human capital in the most robust of environments. By the end of 2018, an estimated 1.7 million people will be working from 19,000 different co-working spaces spread throughout the world. For the second consecutive year, the number of new coworking spaces is projected to grow by nearly 30%.
Several different factors account for such astronomical growth. The average employee prefers to work within a comfortable, flexible, and highly innovative atmosphere that lacks many of the restrictions of traditional office environments. The average coworking space currently serves 82 members, and 11% year-over-year rise. The larger facilities, accounting for nearly a quarter of the total coworking space available, average more than 150 members. Today's employees, particularly Millennials and Gen Z, find inspiration and insight in coworking spaces that directly correlates with innovation and insight.
Not Just for Startups
Coworking space may seem like it’s the exclusive domain of startups and small think-tanks, looks can be deceiving. Large businesses are buying into the coworking space concept in droves, recognizing that future success will be driven by a people-oriented approach that is exceptionally well-served by shared working spaces.
Innovation will always be an essential accelerant for growth, a thought that is fostered through networking and cross-functional, multidisciplinary teams that inspire nonlinear ideas and, to borrow a popular but pertinent cliché, thinking outside of the box. Companies as varied as Facebook, IBM, Ernst & Young, and Cisco all entered the coworking world in 2017, a trend that continues to blossom as time passes. The appealing combination of cost efficiency and innovation that stems from the unique dynamics found in co-working spaces will continue to attract even the largest of corporations, a critical tool in the fight for market share and competitive advantage.
Ideal Space for Small Innovator
Of course, the very same qualities that are attracting so many large corporations to coworking spaces have always held a special place with many startups and smaller companies. Coworking space is still synonymous with the startup community, two entities linked to one another by a group of remarkably consistent philosophies and ideals.
Innovative thought will always be a newer, smaller company's greatest asset, the fertile soil that world-changing inspiration rises from. The shared mindset and open, collaborative atmosphere found in coworking space is often that fertile soil where human talent and technology converge to create new perspectives and groundbreaking thought that drive today's digital economy. Although coworking space now appeals to even the largest of today's corporations it will always be an important component to the success of a driven, ambitious startup community.
What the Near Future Holds for Coworking Space
Given its astronomical growth in recent years, it's hard to imagine the significance coworking space will wield in the marketplace decades from now. Going by current trends and estimates, its near future will be formidable in its own right. Roughly 2/3 of existing coworking spaces will be expanding within the year by an average area of 70%.
A third of those expansions will include opening at least one additional location as well, propelled by the roughly 75% of employers expecting to increase their workforce within the year. With nearly 80% of coworking space owners projecting increases in both member numbers and profits, the next few years are likely to cement the absolute importance of coworking space permanently into industry's collective psyche.
As coworking space continues to establish its hold on the modern workplace, it will inevitably evolve to feature certain characteristics and functions that are best-suited to specific needs. Whether you’re a large corporation or a small team, well-established or the freshest of startups, TenantBase has the expertise to find the coworking space most appropriate for your particular needs and expectations. Let our invaluable experience and exceptional knowledge unlock the many benefits coworking space can provide your organization, both now and well into the future.