Video killed the radio star, Netflix put the nail in Blockbuster’s coffin, Uber axed the taxi and now coworking spaces are on the brink of revolutionizing corporate office space as we know it. We’ve seen what happens to old-school industries once they’re ripe for disruption. Now it’s safe to say there’s no stopping the rise of shared office space and fall of traditional offices. The reason why is simple: demand. But what’s caused the demand for coworking spaces to roughly double every year since 2012? Keep reading and you’ll wonder why you’re not sitting in one right now.
COWORKING SPACES ARE THE FUTURE
Coworking spaces, flexible offices, community office space, shared work space – call it what you will, they’re a rare win-win for both employers and employees and they’re here to stay. The latest models project over 15,000 shared office spaces to be open by 2018 with membership in the seven figure range, according to Desk Mag. That equates to over 27 million square feet of shared office space in the US alone. By 2020 we’re expecting upwards of 26,000 locations.
Employers around the globe are doubling down on shared office space because the flexibility and cost savings compared to traditional leased office space simply cannot be beat. There’s no better way for an employer to stay agile. This is especially true in industries where revenue fluctuates throughout the year and in this economy that pretty much applies to all of us.
HAPPY & PRODUCTIVE EMPLOYEES IS A WIN FOR EMPLOYERS
Have you heard that sitting is the new smoking? Yeah, that cube is slowly killing both your physical and mental health, not to mention stifling creativity and productivity. Humans weren’t meant to slouch over a keyboard from sunrise to sunset. Physical space impacts employee performance. It’s no wonder walking meetings are now a thing. Coworking spaces cater to health-savvy members with a wide range of ergonomic furniture, standing desks, treadmill desks, healthy snacks, and outdoor space.
The New York Times went as far as to call community office spaces “…an office utopia designed for millennials.” The best community office spaces also offer bike rentals and surfboard storage so feel free to proudly rock your FitBit here. We don’t judge and you’ll be in good company – 70% of members reported feeling healthier and 89% are happier overall in a coworking space rather than an outdated office.
AGILITY & FLEXIBILITY IS ESSENTIAL
Renting flexible shared office space as opposed to long term leases seems to be good for all those who take advantage. The best part however isn’t the unlimited free coffee or fast Wi-Fi. That’s far from it. We’ve seen employee engagement skyrocket thanks to the limitless networking and referral opportunities – all while building a sense of community. We know many of our best ideas are thought up over casual conversations in the hallway or café and coworking spaces foster this naturally. The hard facts support this too. Studies show 71% of members reported collaborating with other members in their most recent year of membership.
Today’s economy isn’t what it was a decade ago. One size doesn’t fit all and this doesn’t apply solely to the “little guys”. KPMG, Pepsi, Heineken, Microsoft and numerous other Fortune 500 companies are utilizing coworking spaces. Change is coming and the trend is clear: there’s a demand for more flexibility, agility, and short term rentals of shared office spaces.