Co-Working Spaces – A unique concept of shifting traditional offices to more evolved and flexible office setups
In today's urban landscape, co-working spaces have gained remarkable popularity, especially among major cities and corporations, due to their affordable pricing and flexibility. Co-working space is an arrangement in which several companies with different businesses share an office space that allows companies to take cost-saving measures and convenience through the same infrastructure, shared facilities, etc.
Co-Working Space Market Overview
As per our analysis, the global co-working space market will witness a CAGR of 17% during 2023-2028, reaching USD37 billion by 2028 from USD17 billion in 2023.
Notably, the popularity of co-working space has risen due to its flexible work environment, low operational costs, less logistic hassles, and access to various facilities or amenities offered by the providers, such as high-speed internet, conference rooms, workstations, private offices, cafés, lounges, etc.
Moreover, providers offer personalized services to their customers, including childcare facilities, on-site fitness centres, laundry facilities, and various other amenities. These services are pivotal in attracting potential clients and driving market expansion.
Co-working spaces have primarily appealed to startups. But, in light of the uncertainties surrounding the pandemic-related challenges, larger organizations around the globe are also considering a shift from long-term leases and owned facilities to flexible workspaces.
Furthermore, to develop more diversified teams far away from the headquarters and to manage their team expansion more flexibly, many big companies like Microsoft, Facebook, and Apple have embraced the concept of co-working spaces. This has contributed to a substantial market expansion, making it a favorable choice in numerous countries. The co-working space sector has observed remarkable growth across various regions, including North America, Asia Pacific, Europe, the United States, and China.
Co-Working Space Business Model
Membership Plans and Services Provided by Co-Working Spaces
- Hot Desk Membership Plan: This plan provides co-working space during business hours without a fixed workstation along with all necessary office equipment. This is convenient for people who are working from different locations and who need it for a short time period
- Dedicated Desk Membership Plan: This reserves a dedicated workspace within a shared office environment. This is ideal for remote workers or freelancers needing a dedicated workspace. It also provides access to meeting rooms and other common areas
- Private Office Membership Plan: This offers a private and independent workspace for teams to collaborate, making it a convenient choice for startups, small to medium-sized teams, and remote & hybrid employees
- Virtual Office Membership Plan: This plan provides an office environment to WFH (Work from home) employees and offers facilities such as a co-working service provider address for official mail and packages, meeting rooms and common areas, etc.
- Community Membership Plan: This offers excellent value at minimal costs. It also provides access to the digital community, event tickets, and discounts on meeting room rentals, etc.
Drivers
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With the rise in the number of startups, small businesses concentrate more on lowering renting expenses |