Co-working spaces were all the hype running up to the pandemic. With an increase in startups, solo entrepreneurs, people were on the lookout for spaces that would provide the resources yet help them save a penny as well!
However when covid started many business owners had to choose between either having their employees work at the office or opt for the possibility of remote work. It is pertinent to balance the pros and cons of both options. This notion is particularly relevant in this day and age. Keeping in mind how Covid has heavily impacted the way businesses operate now. Let’s see if these co-working spaces are really “dead.”
There are multiple factors that will determine the future of co-working spaces. let’s take a look at some of the emerging trends in the co-working space
It must be borne in mind that working remotely saves up a lot of time. We could relate this to the well-known concept of opportunity cost. There is no need to go to the office nor waste your time with the hectic commute. The amount of time being used to travel to and from the office can be invested in productive things. Secondly, expenses like the office’s rent, utility bills, etc., become redundant, which is quite favorable for the business. The money that is usually spent on these expenses can now be utilized in other ways. This makes everything less burdensome. But not all businesses can afford to or will prefer to go completely remote. Most businesses as we have seen are looking for more hybrid solutions especially as teams expand over different time zones and locations. This is where co-working spaces will come in.
However, co-working spaces will have to amp up their game if they want to stay relevant. As remote work has picked up pace, office rentals have gone down with more and more businesses looking for hybrid options or places where their teams can and go as they please. This has meant an increase in investments in converting existing properties into flexible workspaces.
Co-working spaces will also grow in their ability to provide mental health services to locals. Many co-working spaces now still include free meditation, mindfulness, and counselling sessions to assist members improve their mental health. It is envisaged that, in the future, practically all co-working spaces would provide similar lessons for free to their employees on weekends. Let’s see where co-working culture goes in the future as a result of this breakthrough says Jessica Robinson, Content & Human Resource Manager at The Speaking Polymath.
Studies have also shown us that employees prefer to work at home, which leads to higher levels of productivity too. Therefore this shows the workers’ inclination for working remotely. However, we cannot blindly believe that all employees would prefer working from home. Everybody has different preferences when it comes to working. Also, the environment at home may not be the best place for the employee to get things done. Distractions definitely pose a hurdle that eventually affects overall productivity. Connectivity issues will prevent the workers from getting their work done timely. Thus, the business organization doesn’t have too many controls over the employee’s working space. For all we know, their kids might be running around not letting the employee fully concentrate! The quality of the work is also going to be affected by this.
Moving on, it is essential to note that some workers find it difficult to strike a balance between their day-to-day lives and work. Consequently, working from home puts the worker at much more convenience and ease. It’s a pushover for employees facing problems like not giving their family sufficient time or not having a social life at all!
In a co-working space, the workers bond and interact on a daily basis! This is an integral part of their social lives. Taking that away from the employees can strain their relationships, be it a mild strain. This matters specifically for the workers that are outgoing and extroverted.
When you invest in community development and provide educational and well-being activities, it’s a whole different ballgame. Members enjoy being in the company of others who share their interests, networking, forming friendships, partnerships, and collaborations. Because of the emotional relationships they formed with your assistance, they will never easily quit your co-working space.
As the number of accessible places expand, more people are looking for something special to set them apart. Many companies try to differentiate themselves by offering services, however this seldom succeeds because they all offer the same services. The new co-working space distinguishes out since it was created with a certain set of individuals in mind. Women make up a tiny percentage of colleagues, but this isn’t due to a lack of want or need; rather, women are frequently talked over and downplayed in co-working spaces, as they are in many businesses. Women’s spaces and places for women have sprouted up all over the world, and they look to be thriving.
Some examples of specialized co-working spaces are:
Corporate co-working is also another genre that has picked up hype ever since the pandemic due to a number of reasons including Long-term and short-term rentals are available, Shared workplaces that may be customized, Offices that are adaptable to the company’s needs and Offices that are extremely adaptable for firms with a blended staff.
Advanced co-working spaces require specialist management tools to operate. Every facility operator must maintain things organized, expand their operations and community, and simplify and streamline the facility’s everyday operations for their clients. If you evaluate the top companies on the market and make an informed decision, the software will save you and your managers time, increase productivity, and improve the experience of your members says Ryan Jeffords, the Founder of BHPH.
Artificial intelligence streamlines operations, improves member experience, and aids in the analysis and prediction of financial results in the co-working space. AI is being implemented at a quicker rate, and operators are anticipating with better precision. AI will also play a key role in ensuring a safe and effective return to work following the epidemic.
Looking at the numerous pros and cons, it is evident that co-working spaces are not dead. Remote working is a necessity for now, but that doesn’t render co-working as a non-feasible way of working. The Covid-19 epidemic has hampered the recent tremendous expansion in the co-working space business. In 2019, the worldwide co-working space market was valued $9.27 billion, but by 2020, it had dropped to $8.24 billion. The major cause of the drop is the economic downturn brought by by the Covid-19 outbreak. However, now that things are returning to normal, the market is likely to rebound in 2022. Experts predict that by 2023, the market would have grown to a value of roughly $11.52 billion.
The above assertion is backed up by Ron Wysocarski, Broker and CEO of Wyse Home Team Realty, who believes that 2022 will be a watershed moment for growing co-working spaces. He estimates that the number of co-working spaces would reach 750 million by 2025. The estimate is that co-working space would see a 20 percent to 30 percent increase in seat absorption, up from 15 percent in 2021.
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