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FUTURE OF COWORKING SPACES
Future of Coworking Spaces
Future of Coworking Spaces
Future of Coworking Spaces
FUTURE COWORKING MODEL
The future of coworking spaces is based on their relevance and adaption to the needs of the modern workforce. Gen Z – a digitally native generation that highly values flexibility, wellbeing, and the ability to make choices – is now entering the global workforce. The preferences and needs of Gen Z will pave the way for new trends within the coworking industry.

Coworking spaces are a fast-growing reality in today’s world with promising future prospects. The global pandemic has had a tangible adverse impact on the demand for coworking spaces yet it also reinstated the significance of a critical aspect of work-life: human connection.

Coworking spaces are highly valuable for community building as they offer a thriving ecosystem for the cross-pollination of ideas, stimulation of inspiration, and networking. Therefore, despite the negative influence of the lockdowns, the statistics for the future of coworking are optimistic as it is expected that by 2025 the number of coworking spaces will increase to over 36,000 from 18,000 in 2019.

Moreover, according to real estate company JLL, by 2030, the flexible workspace market will constitute around 30% of the U.S. office space stock. The coworking segment can largely attribute its popularity to the rise of the gig economy. In the future, besides the gig-economy, substantial demand for flexible workspaces will be driven by corporate entities.

Corporations will incorporate coworking as a part of their core real-estate strategy while planning new facilities or expanding scale, as opposed to building real-estate complexes. Apart from the financial savings, this would allow organizations to capitalize on several advantages such as decentralizing their office space, reducing their long-term commitments, or extending support to employees who prefer working close to home.

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Factors shaping the future of coworking spaces.

Coworking spaces of the future will be drastically different than today as they will augment technology to evolve in terms of smart dynamic areas. Tech-enabled workspaces will reduce the physical touchpoints, boost the user’s experience, and attend to health and safety concerns. According to a report by CBInsights, the ‘office of the future’ will have autonomous cleaning solutions, contactless entry, and exit, sensors to count the users, along pre-entry biometric checks. At the other end of the spectrum, automation will also help the space managers improve productivity, foster a community, and simplify and streamline operations.

Coworking is a transformative force and an industry, but it’s also a movement that will fundamentally realign the tangible dynamics of office space. To survive a highly competitive landscape, coworking spaces of the future will be increasingly classified into niches. The specialization of office spaces would allow them to appeal to a particular target audience, create a strong community and differentiate the service. Field-centric coworking spaces will also become common for people from similar occupational fields to collaborate and share ideas.

The workspace of the future will be environment-friendly, livable, and green. A recent study led by Forbes revealed that Millenials and Generation Z consumers highly value sustainability. To that end, the design and development of the coworking spaces in the future will be governed by the principles of eco-friendliness and environmental protection. Coworking spaces will strive to adopt green practices that minimize energy consumption, set up recycling standards, save via reducing variable costs, and mitigate the impact on climate change via reduced CO2 emissions.

VALUE-ADDITIONS TO THE COWORKING MODEL
The future of coworking space will be highly competitive and thoroughly cut-throat. In order to differentiate, add value, and earn additional revenue, administering out-of-the-box services at affordable prices will attract and retain the desired footfall.
From Issue to Opportunity!

How has the COVID-19 changed the future outlook of coworking spaces?

The COVID-19 pandemic has fundamentally disrupted countless aspects of our work life; resetting major work trends for the future, redefining the physical dimension of workspace, and reshaping the realms of coworking. The onset of pandemic instigated remote and work-from-home (WFH) setup, which resulted in improved flexibility and increased freedom. With the unarguable benefits, WFH posed serious challenges given the potential compromise over the work-life balance, work schedules, and privacy; leading to “WFH fatigue” that manifested in the form of mental and physical stress.

Coworking spaces emerged as an intriguing alternate for pandemic-induced fatigue for WFH employees and helped solve the remote work dilemma. Such spaces thrive on the community, collaboration, and connection that effectively filled the void created by the pandemic. At the same time, the coworking model needed major transformation to maintain the health and safety protocols; ranging from floor plans to space design.

The COVID-19 has paved the demand for a new ecosystem and the coworking spaces of the future will respond with varied strategies. Flexible workspaces will employ the de-densification strategy, which essentially limits the number of people using one space. This could potentially be achieved by physical distancing, creating an efficient seating plan, or reducing attendance to alternating workdays. Furthermore, coworking spaces will invest in touch-free technology such as smart lighting, setting up sanitation stations, installing air purifiers, and arranging temperature sensors.

POST-PANDEMIC RECOVERY OF COWORKING
As the world underwent a lockdown heralded by the onset of COVID-19, the demand for coworking spaces fell quickly and flexibly. While some struggling operators winded up the business completely, the flexible workspaces became even more flexible to keep up with changing demands such as smaller size requirements, shorter agreements, etc. With a few tweaks to the model, coworking has stood the test of the pandemic as the default model of the future.
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Future trends in coworking

Coworking has evolved to become an integrated part of portfolio strategy; anticipated to grow in scale and scope in the future as the “new normal” of office space. Various trends within the coworking market will transform the landscape of the global office space. For instance, technological sophistication will transition coworking spaces into “virtual coworking”.

Virtual coworking is an online, simulated space that brings people together digitally with the bottom line of increasing productivity, accountability, and networking. The virtual coworking operators will provide an experience for coworkers to work together while operating from the comfort of home. The futuristic spaces will have robots carrying out customer service and administrative tasks. As automation gradually replaces the human workforce, bots will roam around, clean, deliver packages, conduct sales, and act as secretaries at the coworking premises.

Coworking spaces will become mobile, allowing coworkers to work while commuting. This will effectively remove the time spent on commute, inspire creative thinking, simultaneously increase employees' happiness and work productivity.

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