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Coworking Spaces Revolution:
Innovation & Trends 2019
Carmelon Digital Marketing | December 2018
Introduction
The need for coworking spaces is growing rapidly worldwide. GCUC and Small Business labs predict that:
• The number of global coworking spaces will grow from 14,411 in 2017 to just over 30,000 in 2022.
• The number of coworking members will grow from 1.74 million in 2017 to 5.1 million in 2022 at an average annual growth
rate of 24.2%.
In the following slides we analyze the factors that drive the coworking revolution and the trends and innovations to note in 2019.
What Is Coworking?
According to Google, coworking is defined as “the use of an office or
other working environment by people who are self-employed or working
for different employers, typically so as to share equipment, ideas, and
knowledge.”
TechTarget offers a different definition: “coworking is a business
services provision model that involves individuals working
independently or collaboratively in shared office space.”
Coworking spaces, however, are harder to define, although Nina Pohler
came close in 2011: a coworking space is “every workspace with
flexible structures that is designed for and by people with atypical, new
types of work - that is not exclusively for people from one certain
company.”
Types of Coworking
Traditional Coworking
Traditional coworking spaces – such as provided by WeWork – focus
on building community. In such spaces, a variety of businesses and
freelancers can connect, support each other, and thrive. The spaces
are carved out with hot desks, permanent desks and private rooms to
cater to all types of businesses. This is the “Sharing without
Relationship” model and it involves two or more unrelated companies
sharing the same space – for example GRid70.
Lifestyle Coworking
These coworking spaces are focused on providing members with
lifestyle benefits like yoga classes, meditation, nap pods (Groundwork,
WorkingUp, CIC Rotterdam, The Farm, Journey Coworking, Spaces
Asia, and others), food and beverages, childcare, personal growth
events, and much more.
Niche Coworking
Niche coworking is one of the trends of 2019. These
spaces are industry-specific, catering to specialized
segments of the market: legal (Chisel), musicians
(Cohere Bandwidth), construction (Tradecraft
Industries), and so on.
Business Lounges
Similar to lifestyle coworking, business lounges offer a mix of enterprise
and recreation. As an example, the Hudson Business Lounge is “an
events space, a shared office space, a conference center, and a casual
dining café all rolled up into one.”
Friendly Corporations Model
Two or more corporations with partnership deals share the same
coworking space. For example, AT&T’s three innovation centers.
Startup Incubators
These coworking spaces specialize in growing new and early-stage
businesses. According to J.J. Colao, these are "startup hubs [which]
offer expert membership, resources like office space, legal counsel, and
even seed money - typically in exchange for a small amount of equity in
tiny (or theoretical) companies.”
Examples of incubators include Matter,Upwest Labs,Founders Space,
and YC, among others.
Google’s Campus is a global network of spaces operated by
Google for entrepreneurs. Google provides financial support
and the best of Google’s resources to startup communities
across 125 countries.
Startup Accelerators
Startup accelerators are designed to help companies grow
rapidly. Fernando Sepulveda defines this “a holistic business
advisory service.” They are similar with incubators, but their
purpose is different. They want they members to reach
profitability, to scale, and to find key industry connections.
Examples include ShinSheva, NewME, 500 Startups, Y
Combinator, MassChallenge, RocketSpace, and Plug and
Play.
Corporate Coworking
Corporations see value in coworking spaces too. The
Microsoft Switzerland coworking space is an example of
corporate coworking space. It is a meeting space for Microsoft
partners, customers, startups, and employees.
Types of Coworking Rentals
Coworking spaces offer a variety of office-rental options. The
main three choices are:
Dedicated Desk
A dedicated desk is exclusive to the worker renting it. It comes
with perks like 24/7 access, member-only benefits, lockable
filing cabinet, and more.
Hot Desk
A more affordable alternative to dedicated desk, the hot desk is
ideal for workers who don’t need 24/7 access. These spaces
can be rented as needed. As WeWork puts it, “just bring your
laptop, pick an open seat, and get to work.”
Private Offices
Private offices are ideal for teams. They are fully furnished work
spaces that come with 24/7 access, member-only benefits, and
more. They are ideal for teams of any size. Small businesses
and fFrtune 500 companies like GM, GE, IBM, and Microsoft
rent private offices from WeWork.
Why Coworking Spaces?
With over 17000 coworking spaces spread across the world
and growing every day, coworking is now a Global trend.
The first designated coworking space was opened by Brad
Neuberg in San Francisco in 2005. It was called Spiral Muse. It
had 8 desks, community lunches, and enjoyed meditation and
massages true to its San Francisco location roots.
In 2007, GCUC (Global Coworking Unconference Conference)
recorded only 14 coworking spaces worldwide followed by 436
in 2010, and an explosive 7805 in 2015. This is already a
billion-dollar industry, expected to grow at an average annual
growth rate of 16.1%.
GCUC predicts that by 2022 China will become the world’s largest coworking market. In 2017, Asia-Pacific was already the world’s
largest coworking market.
At the start of 2018, IWG surveyed over 18,000 professionals from a range of different industries in 96 countries to determine just how
coworking spaces benefit employers:
• 91% said that flexible workspace enables employees in
their company to be more productive while on the move
• 89% believe flexible working helps their business grow
• 87% believe flexible working helps their business stay
competitive
• 83% believe flexible working helps their business
maximize profits
• 80% stated coworking spaces helped them recruit and
retain top talent
• 82% stated fl exible working helps them create a
presence in new markets
• 76% said companies in their industry sector are opting for
more pay-as-you-go business services
• 88% said remote working locations help reduce
commuting time for employees
• 81% said remote working locations help employees
achieve a better work/life balance.
Coworking spaces address the needs of modern employers and their employees, by offering them significant benefits.
Employees thrive in coworking spaces. Studies have shown that people working in coworking spaces have more purpose as
they have control and flexibility in their work environment. As a result, they are happier, motivated, and see their work as more
meaningful.
As most coworking spaces are normally accessible 24/7, employees have more job control as they can decide:
• When to put in a long day when they have a deadline or want to show progress
• When to take a break (to go to the gym or for other activities)
• Choose whether they want to work in a quiet space or in collaborative space where interaction is encouraged.
• Work from home, without repercussion, and much more.
Benefits of Coworking Spaces
Source: IWG
Coworking reduces isolation and loneliness, improves
mental health. Working alone is isolating, while
interactions with people can provide emotional support,
collaborations, learning, and better productivity.
According to the Global coworking manifesto, the coworking
community values:
• collaboration over competition
• community over agendas
• participation over observation
• doing over saying
• friendship over formality
• boldness over assurance
• learning over expertise
• people over personalities
• "value ecosystem" over "value chain“
A 2015 survey by Small Business Labs and GCUC found
that coworking spaces are human spaces, creating
communities of happier, healthier, more productive
professionals. Here are some of the findings of the survey:
• 84% people in coworking spaces feel more engaged
and motivated
• 82% said coworking has expanded their professional
networks
• 80% said they turn to other coworking members for
help or guidance
• 69% reported they learned new or improved existing
skills
• 87% report they meet other members for social
reasons
• 89% reported they are happier
• 83% reported they are less lonely
• 78% reported that coworking helps keep them sane
Employees see their work as more meaningful. With
more job control and a better mindset, employees working
in coworking spaces are more confident and more creative
and find more joy in their work.
Deskmag found that:
• 90% of coworkers report an increase in self-
confidence since joining a coworking space
• Compared to a traditional office, the majority of
coworkers (71%) report a boost in creativity since
joining a coworking space.
• 50% of all coworkers access their work space around
the clock
• 64% claim they are better able to meet deadlines
• 68% said they have better focus
• 62% said the standard of their work had improved
Better income. For many freelancers and employees
working in coworking places one of the main benefits is an
increase in income – 32% more. (Deskmag)
According to Desmag’s 2017 Global Coworking Survey,
coworking members see their own income as high (30%) or
very high (5%) and only 16% view their income as low or
very low. The same survey revealed that men are more
than twice as likely as women to earn a high to very high
income – 46% to 24%.
A fifth of all female members rated their income as low to
very low. This number is only a tenth for men.
As members get older, their incomes grow in comparison to
their living costs.
Employees make more than freelancers in coworking
spaces and their ratio of well-paid jobs is at 41%.
Coworking spaces benefit businesses too. Large companies, entrepreneurs, startups, and freelancers alike choose this kind of
spaces for flexibility, affordability, better networking, and other significant advantages. Businesses grow, stay competitive, create a
presence in new markets or manage volatile markets, attract more talent, and maximize profits, all while improving relationships with
other businesses and colleagues.
Coworking spaces are more affordable than traditional office spaces. A business can save a lot by choosing flexible space over
a conventional lease in a major city. Cushman & Wakefield’s research, cited by New Yorker Magazine, revealed just how much, in
average, businesses can save with coworking spaces (desk per year) in some of the major cities around the world:
City Coworking spaces Conventional spaces % Difference
London $11,931 $22,665 47%
Paris $9,724 $11,756 17%
New York $13,440 $15,931 16%
Munich $8,519 $9,784 13%
Sydney $6,921 $11,997 44%
Tokyo $10,409 $18,111 43%
Hong Kong $7,607 $27,432 72%
Reduce long-term leases. Corporations and other
businesses are turning to coworking spaces not only to cut
rental costs, but also to reduce long-term leases. This
affords them freedom to downsize their team or hire new
employees on a need-to basis.
Employment flexibility. Coworking spaces enable
companies to hire talent (including freelancers) at locations
independent of their headquarters. Coworking spaces
eliminate barriers like time and distance inherent for staff
commuting to a traditional office. This leads to happier
employees and increased productivity.
Broaden outsourcing prospects. Since coworking spaces
host all kinds of talent, from marketing to coding, from
design to engineering, companies can broaden their
outsourcing prospect at little or no cost.
Savings on office amenities. Coworking spaces often
offer all kinds of office facilities coffee, lunches, WiFi,
electricity, water, A/V gear, printer, office supplies, and
other utilities.
Coworking spaces are mostly occupied by small
businesses (47%), freelancers (20%), and
employees of large companies who work from
remote locations (12%). (Global Coworking Survey
2017 – Deskmag)
Small businesses Freelancers
Large companies Others
Expansion and scalability. Coworking spaces allow
companies to hire talent in different locations without
worrying about having to spend on setting up offices there.
This facilitates business growth and profits.
Community events. Besides office space, many coworking
spaces offer meeting and lounge areas where you can meet
your team and brainstorm, hold team-building events or
conferences. Coworking spaces often host networking
events, seminars, and workshops that foster personal
growth and encourage community building and cooperation.
Affordable support staff. Coworking spaces have
dedicated support staff on site performing some jobs for
free, others on pay-per-task basis.
Overhead costs savings. Furniture, paint, carpeting,
décor, water, electricity, and other overhead costs including
upkeep are shared in coworking spaces and are included in
the rental price.
WeWork has more than 5,000 employees in over 280
locations, spread across 90 cities around the world. It offers
beautiful, collaborative, coworking spaces for teams of any size.
Companies like Salesforce, Microsoft, Dell, Spotify, Pinterest,
Sprint, and many others rent serviced offices from WeWork.
Plans start at as low as $220 for a “hot desk” with included
amenities like super-fast internet, micro-roasted coffee, daily
cleaning, 24/7 building access, business-class printers, beer on
draft, fresh fruit water, mail and package handling, bike storage,
office supplies, private phone booths, unique common areas,
networking events, and front desk service.
Top Coworking Spaces Companies
Serendipity Labs was founded in 2011, a year after the launch
of WeWork. In 2017, the company secured $11.3 million from
investors for 125 USA locations in its development pipeline.
Serendipity Labs offers workplace memberships that include
full-time and part-time coworking; private offices, workstations,
and team rooms, all with enterprise class technology and a
secure infrastructure.
Serendipity Labs also offers an enterprise-cloud solution.
OASIS is a technology platform for Operations, Administration,
Sales, Interactivity, and Support specifically for managing
remote work facilities and related programs.
IWG was founded in Brussels, in 1989, as Regus (IWG –
International Workspace Group - since 2016). Today, the
group’s head office is in Switzerland. It is one of the pioneers of
the serviced workplace providers.
It offers serviced offices, virtual offices, meeting rooms, and
videoconferencing and operates in 3300 business centers in
over 1000 towns and cities across more than 110 countries.
IWG employs approximately 10,000 team members globally.
With companies like Regus, Spaces, No18, Basepoint,
Openoffice, and Signature, IWG is today the world’s largest
provider of flexible working spaces, servicing more than 2.5
million people and their businesses.
Talent Garden was founded in Brescia in 2011. It currently
boasts 23 campuses in 8 countries – Albania, Austria,
Denmark, Ireland, Italy, Lithuania, Romania, and Spain –
hosting thousands of people, including startups, freelancers,
companies and large corporations.
It is one of the fastest growing companies in Europe, and
collaborates with major partners such as Google, Cisco, and
BMW.
Its mission is to create local, vibrant, globally connected
campuses that empower digital & tech communities.
UrWork is China's largest co-working space provider. It offers
offers co-working space solutions to small-to-medium
enterprises.
UrWork operates in 160 locations in 36 cities around the world,
servicing over 7000 enterprises, and over 120,000 individual
members. It is a strong contender to WeWork. It formed a joint
venture partnership with New York’s Serendipity Labs in July
2017; it acquired Woo Space in March 2018; and Workingdom
in July 2018.
It operates Ucommune, the largest and most recognized
coworking space brand in mainland China.
Industrious boasts 53 coworking spaces across 30 cities in the
USA. It is the country’s third coworking network behind
WeWork and IWG. It will continue to grow, as in 2018 it raised
$142 million after the Series C, or third round of fundraising.
Its corporate clients include Chipotle Mexican Grill, Lyft,
Fullscreen, Hyatt, Instacart, Pandora, Pinterest, and Square
among others.
Impact Hub boasts more than 100 coworking spaces in over
50 countries worldwide, servicing 16000+ members.
Part innovation lab, part business incubator, and part
community center, Impact Hub was founded in 2005 in Vienna,
to support social impact projects and enterprises. It delivers
more than 200 programs annually. Its mission is to host a
global movement that builds locally-rooted, globally-connected
social innovation ecosystems.
Knotel was founded in 2016 and it is already a serious
WeWork contender. It has has over 60+ locations across over 1
million square feet in New York, San Francisco, London and
Berlin.
Knotel’s 2,000+ member network include companies like
Cheddar, Stash, The Body Shop, Starbucks, and Teachable.
With a $70 million Series B financing closed in April 2018,
Knotel will continue to grow.
Mydream+ is a successful Chinese coworking space startup,
which completed its $120 million Series C funding round led by
Hillhouse Capital and General Atlantic in August 2018. It
currently boasts 25+ coworking spaces and the investment will
help the company expand in the very near future.
Mydream+ has an engineering team of more than 100 in
Chengdu busy developing automated solutions like the
WeChat-based booking system that reduces labor costs.
The company offers desks in open areas or private offices, as
well as fully equipped conference rooms, printer, free WiFi,
electricity, and drinking water with all membership plans.
Instaoffice was founded in 2015 and is currently regarded as
the coworking spaces rising startup of India. It has 100+
strategic partners like Uber, Hardrock Cafe, AWS, and Nearbuy
to better serve its clients.
Instaoffice currently has coworking spaces in Bangalore,
Gurgaon, Delhi, Noida, and Gandhinagar but it has strong
potential for growth.
The company also organizes regular events for startups, SMEs,
industry leaders, and changemakers across Delhi, Gurgaon
and Bangalore.
Expansion: the Deskmag 2018 Global Coworking Survey
supported by Nexudus, Essensys & WUN Systems, found that
expansion is one of the major trends in the industry for the year.
There is a strong need for more and/or bigger coworking
spaces: on average, every coworking space is planning to
expand their area by 70%.
Of the coworking space companies surveyed
• 27% plan to expand adding more space and more desks
at the same location
• 8% plan to move to a larger location
• 37% plan to open extra locations
• 33% have no expansion plans
Coworking Spaces Trends 2019
With expansion, coworking spaces anticipate:
• 86% more members
• 81% more income
• 81% more sense of community
• 71% more events
More niche-focused coworking spaces: 2019 will see a
growth in sector-specific flexible, serviced working spaces.
According to GCUC, the number of spaces that appeal to
members with specialized needs – like shared biolabs, writers’
spaces, women-oriented spaces, commercial kitchens, etc. –
will continue to grow.
Examples of niche-specific coworking spaces include:
• Chisel – coworking space for attorneys
• Hera Hub – coworking space for women
• Tradecraft Industries – a construction-focused coworking
space
• The Food Loft – coworking space dedicated to the
success of food and foodtech startups.
• Extraslice – a hybrid tech campus with high-tech
workspace
• Avenue Business Center – for financial service
professionals, consultants, and lawyers
• RocketSpace – for tech startups
Advantages of niche-focused coworking spaces:
• A like-minded community of professionals from the same
or similar fields of activity.
• Tailored resources designed for your specific industry and
business needs.
• More business opportunities like collaborations and
corporate partnerships.
Corporate coworking will grow: Microsoft moved 30% of its
New York staff to WeWork offices in 2016. Microsoft also has
its own coworking space and smart building in Switzerland.
IBM rented coworking spaces from Galvanize long before
Microsoft. Verizon transformed four of its urban “telco” buildings
in the USA into coworking spaces. These are just some
examples of large corporations that choose coworking spaces
to create opportunities for community engagement, to have
better access to innovators and talent, and to reduce real estate
costs.
These examples prove that corporate coworking is a fast-
growing global trend. According to GCUC, “this trend will
accelerate over the next 5 years due to corporations looking to
reduce their exposure to long term leases and employees
insisting on more workplace options.”
Better technology: per the EMEA Occupier Survey, CBRE,
2017, 50% of the flexible workings spaces occupiers see
technology as a key success factor for flexible working strategy.
Coworking spaces will integrate smart tech to keep up with the
demands of the modern working force. Technology in
coworking spaces will go beyond performant computers, and
traditional office utilities like printers, copiers, fax, and so on.
Apps: many coworking space providers around the world have
partnered with Raaly, and app which lets any company offer
access to coworking spaces around the world. Raaly users can
search and find coworking spaces at a discount.
Blockchain: In March 2918, WeWork competitor Knotel
launched KnotelKoin, a platform based on blockchain
technology where users are rewarded with digital tokens,
whose value can increase over time and which can be used to
pay for transactions on the platform.
Chatbots and voice assistants are slowly finding their way in
the workplace. A Spiceworks study showed that by 2019, at
least 40% of businesses will implement one or more intelligent
assistants or AI chatbots on company-owned devices,
compared to 25 % of mid-size companies and 27 % of small
businesses. Of the respondents of the survey,
• 46% use AI chatbots and assistants for voice to text
dictation
• 26% use them to support team collaboration
• 24% for employee calendar management
• 14% for customer service
• 13% for IT help desk management.
In addition, 76% IT professionals believe AI will help automate
mundane tasks and enable more time to focus on strategic IT
initiatives.
24%
15%
16%
AI assistant/ Chatbot adoption by company
size
Large businesses Midsize businesses
Small businesses
Real estate industry joins the revolution: per the 2018 Global Coworking Forecast by GCUC, large real estate firms and other
landlords are starting to offer coworking spaces to tenants too.
In its 2016 report Shared workspaces: The market perspective, JLL predicted that by 2030 30% of corporate real estate portfolios will
be dedicated to co-working or flexible space solutions. The same study concluded that coworking spaces at retail properties are
predicted to grow at an annual rate of 25% through 2023.
JLL also suggests coworking may help landlords fill empty spaces and revitalize malls hit by the decline of department stores.
According to GPP, lenders see coworking environments as safe investments because of the diversification of office space.
Coworking spaces in hotels: experts predict that the hybrid
of hotel/coworking space is the future of hospitality. Coworking
hotels are already popping up all over the world. A term to
define the trend could be “cotels” as coined by Prodigy
Networks with their project 17John – “a hotel created through
crowd contributions in an effort to design “a space to call
home for the modern day business traveler looking to rest,
work and network in NYC.”
• YOTEL New York is a futuristic hotel with a coworking
lounge and designated meeting and coworking spaces.
• Zoku Amsterdam – offers a relaxed place to live, work
and socialize with like-minded people while getting wired
into the city.
• Roam Tokyo offers coworking spaces, Zen-like rooms,
and a circus-themed workout and yoga room
• Tryp by Wyndham, Dubai, has the “Nest” coworking
space – one of the world’s first fully integrated co-
working spaces within a major internationally branded
hotel.
Wellness at the workplace: coworking spaces providers will
enhance their offering with all kinds of amenities designed to
attract more members but also to promote a healthy working
environment: yoga and fitness classes, climbing walls,
relaxation areas.
For example, the WhiteHouse San Francisco offers yoga and
meditation, and has a fully functional kitchen and supplies
herbal teas, coffees and healthy snacks. This coworking
destination also has a hiking trail around the perimeter as well
as breathtaking views of San Francisco.
Programs that improve mental health, like CheckYoMate, are
already making coworking spaces increasingly attractive.
Focus on environmental sustainability: green coworking is a
thing since 2013 and it’s becoming quickly an industry norm. In
coworking spaces like HiVE Vancouver, Our Space, Spark
Labs, Impact Hub, and many others, members are encouraged
to help reduce carbon emissions and air pollution by eliminating
the use of harmful chemicals in household products, by riding a
bike to work (some have bike-share programs), by recycling,
using less resources, and more. Many coworking spaces are
furnished with environmentally-friendly furniture and use local
and drought-resistant plants, bamboo flooring, low energy LEDs
lights, and non-toxic paints.
Living and working green is just a normal part of life
Membership incentives: freebies like coffee, fruit-flavored
water, and coworking spaces-sponsored community events are
mainstream. To attract new members, companies offering
flexible working services will diversify their offers to include
healthcare – like COHIP (the Coworking Health Insurance
Plan), daycare, lunches, dance or fitness lessons, free or
discounted passes to local cultural events, or discounted deals
at local stores through partnerships with businesses in the area.
Pet-friendly coworking spaces: pets are family. A pet-friendly
environment is one of the most desired work-perks among the
Millennials. Employees are happier, less stressed, and more
productive, as they don’t constantly have to worry about their
furry friends while at work. The trend is strong enough to
generate media momentum, and companies with pet-friendly
offices have a better public image and generate good will,
attracting more talent.
Coworking spaces use a variety of tools to manage operations and to satisfy technology savvy customers and employees.
Tech and Tools for Coworking Spaces
Optix
Optix is a mobile-first coworking software for coworking
spaces and smart offices. It connects coworking members
with the community, resources, and services offered by the
coworking space using the platform.
ShareDesk
ShareDesk works with Optix, offering access to 4500 venues
in 440 cities across 70 countries, and counting. Users can
book a coworking space, business center, or shared office
space nearby or discover spaces to rent by the hour, day, or
month.
Microsoft Switzerland Co-Working App
The Microsoft Switzerland Co-Working App uses face
detection technology based on Microsoft Cognitive Services
Face API to allow users to check in at the front desk 24/7.
With the app, users can also select available time slots to
make reservations, and network with Microsoft Switzerland
Co-Working Space members.
Kisi
Kisi is a cloud-based access control system. It allows
coworking spaces to connect their doors to their member-
management system to generate additional revenue streams,
keep operations lean, and scale faster.
Croissant
Croissant helps users find workspaces on the go. It has 300+
spaces in its network.
Workfrom
Workfrom has a large database of crowdsourced local
workspaces. It offers a lot of useful information: Wi-Fi speeds,
access to power outlets, available seating and spaces such as
coffee shops and restaurants, and more.
LiquidSpace
LiquidSpace is a real-time network for office space. It
connects more than 72,000 growing teams and professionals
looking for space, with over 5,700 verified venue partners,
space providers, real estate professionals and service
providers with discovery tools, referral capability and direct
messaging.
Millennials are transforming the workplace and coworking
spaces are a result of companies making the shift to satisfy
their needs. The 2016 Deloitte Millennial Survey showed that
Millennials value businesses that put employees first (26%),
trust and integrity (25%), and a commitment to customer
satisfaction (14%). Personal values have the greatest influence
on Millennials’ decision making (64%).
Companies that adapt and attract Millennial talent are more
likely to thrive in the near future. Offering flexible working
spaces is just one of the many steps in achieving this goal.
Millennials have purpose beyond profit, they want opportunities
to grow and become leaders, and they value a good life and
work balance as well as opportunities for international travel.
Coworking spaces are just the right hubs to satisfy these
demands. In other words, Millennials drive the coworking
spaces revolution.
Instead of Conclusion: Focus on Millennials
Thank You!
The research was conducted by: Mihaela Lica Butler
for Carmelon Digital Marketing
More articles and researches on Carmelon Digital
Marketing website:
https://www.carmelon-digital.com

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Coworking Spaces Revolution: Innovation & Trends 2019

  • 1. Coworking Spaces Revolution: Innovation & Trends 2019 Carmelon Digital Marketing | December 2018
  • 2. Introduction The need for coworking spaces is growing rapidly worldwide. GCUC and Small Business labs predict that: • The number of global coworking spaces will grow from 14,411 in 2017 to just over 30,000 in 2022. • The number of coworking members will grow from 1.74 million in 2017 to 5.1 million in 2022 at an average annual growth rate of 24.2%. In the following slides we analyze the factors that drive the coworking revolution and the trends and innovations to note in 2019.
  • 3.
  • 4. What Is Coworking? According to Google, coworking is defined as “the use of an office or other working environment by people who are self-employed or working for different employers, typically so as to share equipment, ideas, and knowledge.” TechTarget offers a different definition: “coworking is a business services provision model that involves individuals working independently or collaboratively in shared office space.” Coworking spaces, however, are harder to define, although Nina Pohler came close in 2011: a coworking space is “every workspace with flexible structures that is designed for and by people with atypical, new types of work - that is not exclusively for people from one certain company.”
  • 5. Types of Coworking Traditional Coworking Traditional coworking spaces – such as provided by WeWork – focus on building community. In such spaces, a variety of businesses and freelancers can connect, support each other, and thrive. The spaces are carved out with hot desks, permanent desks and private rooms to cater to all types of businesses. This is the “Sharing without Relationship” model and it involves two or more unrelated companies sharing the same space – for example GRid70. Lifestyle Coworking These coworking spaces are focused on providing members with lifestyle benefits like yoga classes, meditation, nap pods (Groundwork, WorkingUp, CIC Rotterdam, The Farm, Journey Coworking, Spaces Asia, and others), food and beverages, childcare, personal growth events, and much more. Niche Coworking Niche coworking is one of the trends of 2019. These spaces are industry-specific, catering to specialized segments of the market: legal (Chisel), musicians (Cohere Bandwidth), construction (Tradecraft Industries), and so on.
  • 6. Business Lounges Similar to lifestyle coworking, business lounges offer a mix of enterprise and recreation. As an example, the Hudson Business Lounge is “an events space, a shared office space, a conference center, and a casual dining café all rolled up into one.” Friendly Corporations Model Two or more corporations with partnership deals share the same coworking space. For example, AT&T’s three innovation centers. Startup Incubators These coworking spaces specialize in growing new and early-stage businesses. According to J.J. Colao, these are "startup hubs [which] offer expert membership, resources like office space, legal counsel, and even seed money - typically in exchange for a small amount of equity in tiny (or theoretical) companies.” Examples of incubators include Matter,Upwest Labs,Founders Space, and YC, among others.
  • 7. Google’s Campus is a global network of spaces operated by Google for entrepreneurs. Google provides financial support and the best of Google’s resources to startup communities across 125 countries. Startup Accelerators Startup accelerators are designed to help companies grow rapidly. Fernando Sepulveda defines this “a holistic business advisory service.” They are similar with incubators, but their purpose is different. They want they members to reach profitability, to scale, and to find key industry connections. Examples include ShinSheva, NewME, 500 Startups, Y Combinator, MassChallenge, RocketSpace, and Plug and Play. Corporate Coworking Corporations see value in coworking spaces too. The Microsoft Switzerland coworking space is an example of corporate coworking space. It is a meeting space for Microsoft partners, customers, startups, and employees.
  • 8. Types of Coworking Rentals Coworking spaces offer a variety of office-rental options. The main three choices are: Dedicated Desk A dedicated desk is exclusive to the worker renting it. It comes with perks like 24/7 access, member-only benefits, lockable filing cabinet, and more. Hot Desk A more affordable alternative to dedicated desk, the hot desk is ideal for workers who don’t need 24/7 access. These spaces can be rented as needed. As WeWork puts it, “just bring your laptop, pick an open seat, and get to work.” Private Offices Private offices are ideal for teams. They are fully furnished work spaces that come with 24/7 access, member-only benefits, and more. They are ideal for teams of any size. Small businesses and fFrtune 500 companies like GM, GE, IBM, and Microsoft rent private offices from WeWork.
  • 9. Why Coworking Spaces? With over 17000 coworking spaces spread across the world and growing every day, coworking is now a Global trend. The first designated coworking space was opened by Brad Neuberg in San Francisco in 2005. It was called Spiral Muse. It had 8 desks, community lunches, and enjoyed meditation and massages true to its San Francisco location roots. In 2007, GCUC (Global Coworking Unconference Conference) recorded only 14 coworking spaces worldwide followed by 436 in 2010, and an explosive 7805 in 2015. This is already a billion-dollar industry, expected to grow at an average annual growth rate of 16.1%.
  • 10. GCUC predicts that by 2022 China will become the world’s largest coworking market. In 2017, Asia-Pacific was already the world’s largest coworking market.
  • 11. At the start of 2018, IWG surveyed over 18,000 professionals from a range of different industries in 96 countries to determine just how coworking spaces benefit employers: • 91% said that flexible workspace enables employees in their company to be more productive while on the move • 89% believe flexible working helps their business grow • 87% believe flexible working helps their business stay competitive • 83% believe flexible working helps their business maximize profits • 80% stated coworking spaces helped them recruit and retain top talent • 82% stated fl exible working helps them create a presence in new markets • 76% said companies in their industry sector are opting for more pay-as-you-go business services • 88% said remote working locations help reduce commuting time for employees • 81% said remote working locations help employees achieve a better work/life balance.
  • 12. Coworking spaces address the needs of modern employers and their employees, by offering them significant benefits. Employees thrive in coworking spaces. Studies have shown that people working in coworking spaces have more purpose as they have control and flexibility in their work environment. As a result, they are happier, motivated, and see their work as more meaningful. As most coworking spaces are normally accessible 24/7, employees have more job control as they can decide: • When to put in a long day when they have a deadline or want to show progress • When to take a break (to go to the gym or for other activities) • Choose whether they want to work in a quiet space or in collaborative space where interaction is encouraged. • Work from home, without repercussion, and much more. Benefits of Coworking Spaces Source: IWG
  • 13. Coworking reduces isolation and loneliness, improves mental health. Working alone is isolating, while interactions with people can provide emotional support, collaborations, learning, and better productivity. According to the Global coworking manifesto, the coworking community values: • collaboration over competition • community over agendas • participation over observation • doing over saying • friendship over formality • boldness over assurance • learning over expertise • people over personalities • "value ecosystem" over "value chain“ A 2015 survey by Small Business Labs and GCUC found that coworking spaces are human spaces, creating communities of happier, healthier, more productive professionals. Here are some of the findings of the survey: • 84% people in coworking spaces feel more engaged and motivated • 82% said coworking has expanded their professional networks • 80% said they turn to other coworking members for help or guidance • 69% reported they learned new or improved existing skills • 87% report they meet other members for social reasons • 89% reported they are happier • 83% reported they are less lonely • 78% reported that coworking helps keep them sane
  • 14. Employees see their work as more meaningful. With more job control and a better mindset, employees working in coworking spaces are more confident and more creative and find more joy in their work. Deskmag found that: • 90% of coworkers report an increase in self- confidence since joining a coworking space • Compared to a traditional office, the majority of coworkers (71%) report a boost in creativity since joining a coworking space. • 50% of all coworkers access their work space around the clock • 64% claim they are better able to meet deadlines • 68% said they have better focus • 62% said the standard of their work had improved
  • 15. Better income. For many freelancers and employees working in coworking places one of the main benefits is an increase in income – 32% more. (Deskmag) According to Desmag’s 2017 Global Coworking Survey, coworking members see their own income as high (30%) or very high (5%) and only 16% view their income as low or very low. The same survey revealed that men are more than twice as likely as women to earn a high to very high income – 46% to 24%. A fifth of all female members rated their income as low to very low. This number is only a tenth for men. As members get older, their incomes grow in comparison to their living costs. Employees make more than freelancers in coworking spaces and their ratio of well-paid jobs is at 41%.
  • 16. Coworking spaces benefit businesses too. Large companies, entrepreneurs, startups, and freelancers alike choose this kind of spaces for flexibility, affordability, better networking, and other significant advantages. Businesses grow, stay competitive, create a presence in new markets or manage volatile markets, attract more talent, and maximize profits, all while improving relationships with other businesses and colleagues. Coworking spaces are more affordable than traditional office spaces. A business can save a lot by choosing flexible space over a conventional lease in a major city. Cushman & Wakefield’s research, cited by New Yorker Magazine, revealed just how much, in average, businesses can save with coworking spaces (desk per year) in some of the major cities around the world: City Coworking spaces Conventional spaces % Difference London $11,931 $22,665 47% Paris $9,724 $11,756 17% New York $13,440 $15,931 16% Munich $8,519 $9,784 13% Sydney $6,921 $11,997 44% Tokyo $10,409 $18,111 43% Hong Kong $7,607 $27,432 72%
  • 17. Reduce long-term leases. Corporations and other businesses are turning to coworking spaces not only to cut rental costs, but also to reduce long-term leases. This affords them freedom to downsize their team or hire new employees on a need-to basis. Employment flexibility. Coworking spaces enable companies to hire talent (including freelancers) at locations independent of their headquarters. Coworking spaces eliminate barriers like time and distance inherent for staff commuting to a traditional office. This leads to happier employees and increased productivity. Broaden outsourcing prospects. Since coworking spaces host all kinds of talent, from marketing to coding, from design to engineering, companies can broaden their outsourcing prospect at little or no cost. Savings on office amenities. Coworking spaces often offer all kinds of office facilities coffee, lunches, WiFi, electricity, water, A/V gear, printer, office supplies, and other utilities. Coworking spaces are mostly occupied by small businesses (47%), freelancers (20%), and employees of large companies who work from remote locations (12%). (Global Coworking Survey 2017 – Deskmag) Small businesses Freelancers Large companies Others
  • 18. Expansion and scalability. Coworking spaces allow companies to hire talent in different locations without worrying about having to spend on setting up offices there. This facilitates business growth and profits. Community events. Besides office space, many coworking spaces offer meeting and lounge areas where you can meet your team and brainstorm, hold team-building events or conferences. Coworking spaces often host networking events, seminars, and workshops that foster personal growth and encourage community building and cooperation. Affordable support staff. Coworking spaces have dedicated support staff on site performing some jobs for free, others on pay-per-task basis. Overhead costs savings. Furniture, paint, carpeting, décor, water, electricity, and other overhead costs including upkeep are shared in coworking spaces and are included in the rental price.
  • 19. WeWork has more than 5,000 employees in over 280 locations, spread across 90 cities around the world. It offers beautiful, collaborative, coworking spaces for teams of any size. Companies like Salesforce, Microsoft, Dell, Spotify, Pinterest, Sprint, and many others rent serviced offices from WeWork. Plans start at as low as $220 for a “hot desk” with included amenities like super-fast internet, micro-roasted coffee, daily cleaning, 24/7 building access, business-class printers, beer on draft, fresh fruit water, mail and package handling, bike storage, office supplies, private phone booths, unique common areas, networking events, and front desk service. Top Coworking Spaces Companies
  • 20. Serendipity Labs was founded in 2011, a year after the launch of WeWork. In 2017, the company secured $11.3 million from investors for 125 USA locations in its development pipeline. Serendipity Labs offers workplace memberships that include full-time and part-time coworking; private offices, workstations, and team rooms, all with enterprise class technology and a secure infrastructure. Serendipity Labs also offers an enterprise-cloud solution. OASIS is a technology platform for Operations, Administration, Sales, Interactivity, and Support specifically for managing remote work facilities and related programs.
  • 21. IWG was founded in Brussels, in 1989, as Regus (IWG – International Workspace Group - since 2016). Today, the group’s head office is in Switzerland. It is one of the pioneers of the serviced workplace providers. It offers serviced offices, virtual offices, meeting rooms, and videoconferencing and operates in 3300 business centers in over 1000 towns and cities across more than 110 countries. IWG employs approximately 10,000 team members globally. With companies like Regus, Spaces, No18, Basepoint, Openoffice, and Signature, IWG is today the world’s largest provider of flexible working spaces, servicing more than 2.5 million people and their businesses.
  • 22. Talent Garden was founded in Brescia in 2011. It currently boasts 23 campuses in 8 countries – Albania, Austria, Denmark, Ireland, Italy, Lithuania, Romania, and Spain – hosting thousands of people, including startups, freelancers, companies and large corporations. It is one of the fastest growing companies in Europe, and collaborates with major partners such as Google, Cisco, and BMW. Its mission is to create local, vibrant, globally connected campuses that empower digital & tech communities.
  • 23. UrWork is China's largest co-working space provider. It offers offers co-working space solutions to small-to-medium enterprises. UrWork operates in 160 locations in 36 cities around the world, servicing over 7000 enterprises, and over 120,000 individual members. It is a strong contender to WeWork. It formed a joint venture partnership with New York’s Serendipity Labs in July 2017; it acquired Woo Space in March 2018; and Workingdom in July 2018. It operates Ucommune, the largest and most recognized coworking space brand in mainland China.
  • 24. Industrious boasts 53 coworking spaces across 30 cities in the USA. It is the country’s third coworking network behind WeWork and IWG. It will continue to grow, as in 2018 it raised $142 million after the Series C, or third round of fundraising. Its corporate clients include Chipotle Mexican Grill, Lyft, Fullscreen, Hyatt, Instacart, Pandora, Pinterest, and Square among others.
  • 25. Impact Hub boasts more than 100 coworking spaces in over 50 countries worldwide, servicing 16000+ members. Part innovation lab, part business incubator, and part community center, Impact Hub was founded in 2005 in Vienna, to support social impact projects and enterprises. It delivers more than 200 programs annually. Its mission is to host a global movement that builds locally-rooted, globally-connected social innovation ecosystems.
  • 26. Knotel was founded in 2016 and it is already a serious WeWork contender. It has has over 60+ locations across over 1 million square feet in New York, San Francisco, London and Berlin. Knotel’s 2,000+ member network include companies like Cheddar, Stash, The Body Shop, Starbucks, and Teachable. With a $70 million Series B financing closed in April 2018, Knotel will continue to grow.
  • 27. Mydream+ is a successful Chinese coworking space startup, which completed its $120 million Series C funding round led by Hillhouse Capital and General Atlantic in August 2018. It currently boasts 25+ coworking spaces and the investment will help the company expand in the very near future. Mydream+ has an engineering team of more than 100 in Chengdu busy developing automated solutions like the WeChat-based booking system that reduces labor costs. The company offers desks in open areas or private offices, as well as fully equipped conference rooms, printer, free WiFi, electricity, and drinking water with all membership plans.
  • 28. Instaoffice was founded in 2015 and is currently regarded as the coworking spaces rising startup of India. It has 100+ strategic partners like Uber, Hardrock Cafe, AWS, and Nearbuy to better serve its clients. Instaoffice currently has coworking spaces in Bangalore, Gurgaon, Delhi, Noida, and Gandhinagar but it has strong potential for growth. The company also organizes regular events for startups, SMEs, industry leaders, and changemakers across Delhi, Gurgaon and Bangalore.
  • 29. Expansion: the Deskmag 2018 Global Coworking Survey supported by Nexudus, Essensys & WUN Systems, found that expansion is one of the major trends in the industry for the year. There is a strong need for more and/or bigger coworking spaces: on average, every coworking space is planning to expand their area by 70%. Of the coworking space companies surveyed • 27% plan to expand adding more space and more desks at the same location • 8% plan to move to a larger location • 37% plan to open extra locations • 33% have no expansion plans Coworking Spaces Trends 2019 With expansion, coworking spaces anticipate: • 86% more members • 81% more income • 81% more sense of community • 71% more events
  • 30. More niche-focused coworking spaces: 2019 will see a growth in sector-specific flexible, serviced working spaces. According to GCUC, the number of spaces that appeal to members with specialized needs – like shared biolabs, writers’ spaces, women-oriented spaces, commercial kitchens, etc. – will continue to grow. Examples of niche-specific coworking spaces include: • Chisel – coworking space for attorneys • Hera Hub – coworking space for women • Tradecraft Industries – a construction-focused coworking space • The Food Loft – coworking space dedicated to the success of food and foodtech startups. • Extraslice – a hybrid tech campus with high-tech workspace • Avenue Business Center – for financial service professionals, consultants, and lawyers • RocketSpace – for tech startups Advantages of niche-focused coworking spaces: • A like-minded community of professionals from the same or similar fields of activity. • Tailored resources designed for your specific industry and business needs. • More business opportunities like collaborations and corporate partnerships.
  • 31. Corporate coworking will grow: Microsoft moved 30% of its New York staff to WeWork offices in 2016. Microsoft also has its own coworking space and smart building in Switzerland. IBM rented coworking spaces from Galvanize long before Microsoft. Verizon transformed four of its urban “telco” buildings in the USA into coworking spaces. These are just some examples of large corporations that choose coworking spaces to create opportunities for community engagement, to have better access to innovators and talent, and to reduce real estate costs. These examples prove that corporate coworking is a fast- growing global trend. According to GCUC, “this trend will accelerate over the next 5 years due to corporations looking to reduce their exposure to long term leases and employees insisting on more workplace options.”
  • 32. Better technology: per the EMEA Occupier Survey, CBRE, 2017, 50% of the flexible workings spaces occupiers see technology as a key success factor for flexible working strategy. Coworking spaces will integrate smart tech to keep up with the demands of the modern working force. Technology in coworking spaces will go beyond performant computers, and traditional office utilities like printers, copiers, fax, and so on. Apps: many coworking space providers around the world have partnered with Raaly, and app which lets any company offer access to coworking spaces around the world. Raaly users can search and find coworking spaces at a discount. Blockchain: In March 2918, WeWork competitor Knotel launched KnotelKoin, a platform based on blockchain technology where users are rewarded with digital tokens, whose value can increase over time and which can be used to pay for transactions on the platform.
  • 33. Chatbots and voice assistants are slowly finding their way in the workplace. A Spiceworks study showed that by 2019, at least 40% of businesses will implement one or more intelligent assistants or AI chatbots on company-owned devices, compared to 25 % of mid-size companies and 27 % of small businesses. Of the respondents of the survey, • 46% use AI chatbots and assistants for voice to text dictation • 26% use them to support team collaboration • 24% for employee calendar management • 14% for customer service • 13% for IT help desk management. In addition, 76% IT professionals believe AI will help automate mundane tasks and enable more time to focus on strategic IT initiatives. 24% 15% 16% AI assistant/ Chatbot adoption by company size Large businesses Midsize businesses Small businesses
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  • 35. Real estate industry joins the revolution: per the 2018 Global Coworking Forecast by GCUC, large real estate firms and other landlords are starting to offer coworking spaces to tenants too. In its 2016 report Shared workspaces: The market perspective, JLL predicted that by 2030 30% of corporate real estate portfolios will be dedicated to co-working or flexible space solutions. The same study concluded that coworking spaces at retail properties are predicted to grow at an annual rate of 25% through 2023. JLL also suggests coworking may help landlords fill empty spaces and revitalize malls hit by the decline of department stores. According to GPP, lenders see coworking environments as safe investments because of the diversification of office space.
  • 36. Coworking spaces in hotels: experts predict that the hybrid of hotel/coworking space is the future of hospitality. Coworking hotels are already popping up all over the world. A term to define the trend could be “cotels” as coined by Prodigy Networks with their project 17John – “a hotel created through crowd contributions in an effort to design “a space to call home for the modern day business traveler looking to rest, work and network in NYC.” • YOTEL New York is a futuristic hotel with a coworking lounge and designated meeting and coworking spaces. • Zoku Amsterdam – offers a relaxed place to live, work and socialize with like-minded people while getting wired into the city. • Roam Tokyo offers coworking spaces, Zen-like rooms, and a circus-themed workout and yoga room • Tryp by Wyndham, Dubai, has the “Nest” coworking space – one of the world’s first fully integrated co- working spaces within a major internationally branded hotel.
  • 37. Wellness at the workplace: coworking spaces providers will enhance their offering with all kinds of amenities designed to attract more members but also to promote a healthy working environment: yoga and fitness classes, climbing walls, relaxation areas. For example, the WhiteHouse San Francisco offers yoga and meditation, and has a fully functional kitchen and supplies herbal teas, coffees and healthy snacks. This coworking destination also has a hiking trail around the perimeter as well as breathtaking views of San Francisco. Programs that improve mental health, like CheckYoMate, are already making coworking spaces increasingly attractive.
  • 38. Focus on environmental sustainability: green coworking is a thing since 2013 and it’s becoming quickly an industry norm. In coworking spaces like HiVE Vancouver, Our Space, Spark Labs, Impact Hub, and many others, members are encouraged to help reduce carbon emissions and air pollution by eliminating the use of harmful chemicals in household products, by riding a bike to work (some have bike-share programs), by recycling, using less resources, and more. Many coworking spaces are furnished with environmentally-friendly furniture and use local and drought-resistant plants, bamboo flooring, low energy LEDs lights, and non-toxic paints. Living and working green is just a normal part of life
  • 39. Membership incentives: freebies like coffee, fruit-flavored water, and coworking spaces-sponsored community events are mainstream. To attract new members, companies offering flexible working services will diversify their offers to include healthcare – like COHIP (the Coworking Health Insurance Plan), daycare, lunches, dance or fitness lessons, free or discounted passes to local cultural events, or discounted deals at local stores through partnerships with businesses in the area. Pet-friendly coworking spaces: pets are family. A pet-friendly environment is one of the most desired work-perks among the Millennials. Employees are happier, less stressed, and more productive, as they don’t constantly have to worry about their furry friends while at work. The trend is strong enough to generate media momentum, and companies with pet-friendly offices have a better public image and generate good will, attracting more talent.
  • 40. Coworking spaces use a variety of tools to manage operations and to satisfy technology savvy customers and employees. Tech and Tools for Coworking Spaces Optix Optix is a mobile-first coworking software for coworking spaces and smart offices. It connects coworking members with the community, resources, and services offered by the coworking space using the platform. ShareDesk ShareDesk works with Optix, offering access to 4500 venues in 440 cities across 70 countries, and counting. Users can book a coworking space, business center, or shared office space nearby or discover spaces to rent by the hour, day, or month.
  • 41. Microsoft Switzerland Co-Working App The Microsoft Switzerland Co-Working App uses face detection technology based on Microsoft Cognitive Services Face API to allow users to check in at the front desk 24/7. With the app, users can also select available time slots to make reservations, and network with Microsoft Switzerland Co-Working Space members. Kisi Kisi is a cloud-based access control system. It allows coworking spaces to connect their doors to their member- management system to generate additional revenue streams, keep operations lean, and scale faster. Croissant Croissant helps users find workspaces on the go. It has 300+ spaces in its network.
  • 42. Workfrom Workfrom has a large database of crowdsourced local workspaces. It offers a lot of useful information: Wi-Fi speeds, access to power outlets, available seating and spaces such as coffee shops and restaurants, and more. LiquidSpace LiquidSpace is a real-time network for office space. It connects more than 72,000 growing teams and professionals looking for space, with over 5,700 verified venue partners, space providers, real estate professionals and service providers with discovery tools, referral capability and direct messaging.
  • 43. Millennials are transforming the workplace and coworking spaces are a result of companies making the shift to satisfy their needs. The 2016 Deloitte Millennial Survey showed that Millennials value businesses that put employees first (26%), trust and integrity (25%), and a commitment to customer satisfaction (14%). Personal values have the greatest influence on Millennials’ decision making (64%). Companies that adapt and attract Millennial talent are more likely to thrive in the near future. Offering flexible working spaces is just one of the many steps in achieving this goal. Millennials have purpose beyond profit, they want opportunities to grow and become leaders, and they value a good life and work balance as well as opportunities for international travel. Coworking spaces are just the right hubs to satisfy these demands. In other words, Millennials drive the coworking spaces revolution. Instead of Conclusion: Focus on Millennials
  • 44. Thank You! The research was conducted by: Mihaela Lica Butler for Carmelon Digital Marketing More articles and researches on Carmelon Digital Marketing website: https://www.carmelon-digital.com