Rates of entrepreneurship in the US and Canada are among the highest in the developed world. At the same time, increasingly generous work from home policies promise to decentralize work environments for millions of professionals. This growth is contributing to an unprecedented increase in the need for alternative workspaces, collaborative spaces, and meeting spaces outside of the traditional office environment. That is great news for the thousands of coworking space operators throughout North America.
However, the question remains: What is coworking and what are coworking spaces? How can you determine which type of coworking environment is right for you? What is the future of coworking and how can you put its potential to work for you and your team? This deep dive will walk you through the coworking landscape and help you determine which flexible office space is the right fit for the unique needs of your company or team.
What Is Coworking?
While many people are familiar with the basic concept of coworking, the wide variety of ways in which people use coworking spaces is less well-known. Far from simply encompassing an extra desk and shared wi-fi, coworking can be individual or collaborative, full-time or part-time, and can include an almost unlimited variety of space types.
Though you may think of coworking as the province of solopreneurs and startups, more and more corporations are putting the potential of coworking to use when making staffing and space utilization decisions. As large campuses fall out of favor and remote workers are increasingly sought after, coworking environments offer added flexibility without compromising on infrastructure and amenities.
Is It “Coworking” Or “Co-working”?
In common parlance, many people use coworking and co-working interchangeably. However, from a grammatical perspective, there is a subtle difference. Coworking refers to people from many companies working together in the same space, while co-working generally refers to people from the same office or group working together.
Of course, coworking spaces serve both of these audiences and many others. In many writing and editorial style guides, coworking is the preferred, all-encompassing term for those who work on their own in a coworking space alongside people from other companies as well as those groups who use coworking spaces for collaborative projects.
Coworking Space definition
The old-fashioned vision of a coworking space is a cavernous hall full of desks with a couple of seating areas and a common kitchen, at most. That outmoded concept has little to do with the way that startups, teams, and companies use coworking spaces today.
Now, you’ll find coworking spaces that cater to an endless assortment of businesses and coworkers, offering amenities that you would normally find in a sophisticated corporate headquarters. You’ll find an array of space types as well, from private offices to common workspaces, and from conference rooms to expansive event spaces.
In addition, some coworking spaces are geared toward niche interests and industries, offering the opportunity to work alongside potential mentors and collaborators. That’s why you’ll find spaces specially designed for creative types, tech companies, women entrepreneurs, and more.
Many city centers boast workspaces primarily used by attorneys, advocacy groups, and others due to proximity to courthouses and government offices. Alternatively, tech hubs may feature workspaces with advanced technology integrations and upscale amenities to woo top talent.
The Concept of a Coworking Space
Coworking originated in 2005 in the Mission District of San Francisco in a small collective that was open just two days each week. Over time, that first group began to expand exponentially and resulted in the booming growth that coworking is currently experiencing. While the space and practice of coworking may be relatively new, the concept is an old one.
For as long as people have been coming together in teams and partnerships, they have been taking advantage of some of the benefits inherent in coworking. By working with like-minded professionals you are privy to the energy that comes from group endeavor. In addition, for startups or small corporate teams, coworking offers a way to obtain dedicated office space in pricey urban and exurban markets at a fraction of the cost of traditional commercial real estate options.
What Is the Idea Behind Coworking Spaces?
While the idea behind coworking spaces first took shape in San Francisco, coworking spaces are not limited to big cities or tech companies. In fact, the concept has been applied to a grab-bag of professions and company structures, from real estate brokerages to artist collectives.
More than anything, coworking spaces are designed to provide a secure, convenient space from which to operate without the frustrations and distractions of working from home or at the local coffee shop. They offer the best of both professional services and setups and total flexibility and accessibility.
Advantages of Coworking Spaces
You may be unsure whether a coworking space is right for you and your team or you may have some misconceptions about the way coworking spaces are designed. Far from being simply a work home for freelancers and solopreneurs, coworking can work successfully for practically any type of team or small business.
What are the advantages of working with others at a coworking space rather than in isolation? They include:
Collaboration
Whether you are working with your own small group or are part of a larger team or company, collaboration is key to maximum efficiency and effective communications. By creating both space and opportunity for regular face time with colleagues, coworking spaces ensure top-notch performance from the whole team or company.
Cooperation
Similarly, coworking colleagues are better able to delegate tasks, check in on workflow, and exercise greater oversight on long-term projects. The cooperation fostered by the shared work environment is an essential part of maximizing operational efficiency and project momentum.
Mentoring
Coworking spaces offer many opportunities to participate in advanced training, workshopping, and collaborative work with leaders in the geographic area or the professional field. This can allow coworking colleagues to get to know potential mentors and make connections that pay dividends throughout their professional life.
Affordability
Rather than trying to acquire and maintain a commercial real estate space — which often requires long-term contracts and exorbitant prices — small teams and businesses can take advantage of the opportunity to rightsize their space and watch it grow as they do. In addition, coworking spaces offer many options for short-term rental of larger spaces, like those needed for training, meetings, client pitches, and events. Instead of maintaining those specialty spaces full time, members of a coworking community have on-demand, affordable access.
Flexibility
Whatever you are looking for — bright open-concept space, an exceptional location, upscale amenities, a dedicated support staff — you can find it in a coworking space. Some spaces can create custom build-outs designed to your unique specifications. Others offer dedicated, individual offices along with collaborative workspace so that your company can work in any number of different ways.
Accountability
Your coworking colleagues become an informal community, providing connections that keep you on track. As you discuss your goals and learn from each other, you build a support network that will help keep you accountable and focused.
Networking
Similarly, the connections you’ll make in your workspace help create exponential growth in your professional network. You’ll find this invaluable for building referrals, getting to know leaders in your field, and staying abreast of the latest trends and developments throughout your market.
Support
Many coworking spaces include support staff and services that you would normally expect to find only in larger companies. These may include administrative support, mail and package delivery, front desk reception, and office management. In addition, coworking spaces with event facilities may include event planning, catering, and a host of other services along with tech support to facilitate remote conferencing and presentation capabilities.
Amenities
Many coworking spaces offer amenities normally found in luxury office towers or campuses. These may include fitness studios, shower rooms, relaxation rooms, and other wellness facilities. In addition, you may be able to take advantage of onsite dining, coffee shops, or social spaces offering regular opportunities to connect with colleagues or host clients.
Location
Coworking spaces aren’t only found in big cities; many suburban and exurban areas have them as well. These may be somewhat smaller and offer fewer amenities than many of their urban counterparts. However, these coworking spaces offer big convenience and time savings, with reduced commutes and locations close to home.
Growth And Statistics Related to Coworking
During the latter part of 2020, companies like LexisNexis, Boeing, and REI began to put into operation plans to sell off their major corporate campuses, leaning into remote work policies and divesting themselves of many of their corporate real estate holdings. In many cases, these suddenly rootless employees and teams will turn to coworking for dedicated office and collaboration spaces.
After a temporary dip in the second quarter of 2020, many coworking spaces began to see a return to Q1 levels during the second half of the year. Current trends in commercial real estate, work-from-home policies, and geographic distribution favor the overwhelming growth of coworking for everyone from small businesses to large enterprise-level companies.
As commercial real estate continues to decline, in many markets it will be replaced by new and existing coworking spaces. In addition, the large-scale population shift from in-town areas to suburban enclaves favors the growth of coworking spaces in those newly in-demand residential areas.
Whether you are a team leader or startup founder, coworking spaces offer options that work from home and commercial real estate can’t match.
Source: What Is Coworking And What Are Coworking Spaces? – Upsuite Coworking
