Decades ago, no one has predicted the rising demand of co-working spaces. The concept of sharing a desk with people employed from other companies seemed odd back then. Choices are to rent an office space or work from home. Fast-forward ten years after and there are studies showing how effective it is working together with more people. This evolution in which people work has lead property developers into a new investment opportunity.
This phenomenon is not only happening in Western countries but globally. Small to medium businesses have a challenging time renting commercial office space. Fortunately, co-working spaces are available. Low-cost services can be rented on a flexible basis that best works on one’s schedule. It is far from the traditional commercial or office work space. Most people come and go, and it is not unusual to share a desk with two or three more individuals.
So, is it good to invest in co-working space property? Can you make money from running a shared workplace?
In many ways, there is a chance you will lose your investment in this venture. Yet with the right tactics, success can be guaranteed. It is true that co-working spaces are profitable, but not everywhere. Different factors affect the outcome of a co-working space investment. Depending on the location, space size, and services being offered, it can be determined whether your investment will flourish or fail.
The major target audience of co-working spaces is the freelancers. According to a data collected in Texas, there are nearly two million freelancers or about 6% of the state’s labor force. According to LocalOffice.com, the latest number of coworking spaces in Houston alone is 156. In the next five to ten years, the figure of freelancers might double and so will the need for more co-working spaces. Additionally, independent professionals, small-time entrepreneurs and self-employed individuals could also be found having their meetings and conferences there.
A strategic location is critical when investing in coworking spaces. Whether you are renting or buying a commercial property for the sole reason of putting up a coworking space business, it must be within reach of your target audience. There must be a demand or interest from the people in the community. A huge number of freelancers and mobile workers pick a space based on distance.
The necessities and a unique branding make a coworking space standout from the rest. Learn from the mistakes and successes of coworking spaces existing in the area. Aside from the typical services and offers, find out more what your audience wants. Add a fax machine and a photocopier. Offer a private workspace as some prefers a quiet working environment. Keep a humming internet connection, clean kitchen or pantry, and a solid interior design. Branding is one of the keys to succeed in this industry.
According to statistics, there are 15,500 co-working spaces all over the world. There were 1.27 million people who worked in coworking spaces in 2017. It may not be a huge number compared to the figures of employees working in commercial office spaces. You may be wondering if this trend will continue in the next decades and if your investment will flop. It is not too far off that the traditional office is dying, but businesses will continue to boom. There will still be office workers and even more mobile workers occupying co-working spaces. It will carry on operating as long as there are people who prefer to be with like-minded individuals in a less strict working environment.