More than a mere buzzword, coworking is an alternate to the conventional workspace setup that is increasingly gaining popularity on account of striking the perfect balance of tangible and intangible benefits for both the parties i.e. the space users and the space owners.
The primary users of the coworking space are the location-independent professionals such as freelancers, entrepreneurs, remote workers, and digital nomads yet the coworking model is equally popular with a broad range of professionals and businesses of varying scales.
Nothing is more valuable to the location-independent professionals than the freedom and flexibility to work on their own terms. Coworking allows such users to subscribe for the coworking variant (such as a hot desk or a dedicated desk or a private room) of choice such that it is in line with their requirements along with a time slot and days of the choice. The absence of a lease agreement allows the users to completely capitalize on the transient nature of such workspaces. Flexible workspaces lead to substantial cost-savings on account of the absence of upfront lease payments, pre-loaded amenities, and shared overheads, which enable the users to utilize the limited funds elsewhere.
This is particularly favorable for small-scale businesses and professionals who can save the cost of owning, setting up, and maintaining the space albeit working in a professional setting.
Coworking counters the loneliness of working from home in seclusion and offers a distraction-free environment to concentrate on work-related projects. Furthermore, it provides a communal platform to network, socialize, and collaborate with like-minded professionals. These interactions amongst the users from various walks of life result in the cross-pollination of ideas, information, and work (such as referrals).
Moreover, the non-traditional setup and a host of varied interactions also provoke creativity and stimulate productivity.
The increase in demand for coworking spaces has led to an increase in the opportunities for the space owners. For the space owners, coworking optimizes space efficiency as it converts the unused or vacant space into a successful and running business investment as the model offers an attractive value proposition. It offers flexible lease agreements and pre-loaded amenities that are sure to lure professionals and businesses alike. Hence, the model brings about efficient utilization of space and resources with immense upside potential for growth.
Coworking results in higher revenue as indicated in the net operating income as compared to the conventional lease arrangements, keeping the size of space constant. The rental income per square foot has the potential to be much higher as the users are willing to pay more against the value they drive out of the space.
When properly developed and presented, coworking spaces that are nicely designed and well-equipped tend to stimulate productivity and creativity. Given they fill the needs of the users, coworking spaces tend to retain users for longer, resulting in improved occupancy. Coworking also increases the footfall to a vacant building or retail space leading to enhanced exposure and better commercial prospects.
The model of coworking also shifts the load of day to day logistical operations from the domain of the space owner to the space operator. The space operator usually has a dedicated manager who manages the logistical and technical aspects of the shared workspace. The model is also seen to be linked with an increase in property value and better building credibility.
