Fast forward to 2020 & coworking is full-blown industry that has disrupted the real estate industry and the way people work. And while we can’t accurately predict whether the term coworking will still be used 10 years from now, “as language evolves, industry terminology moves with it”, there is no denying that coworking is today’s normal.
Coworking, as well as other flexible workspaces, are known for offering environments that are conducive to innovation, collaboration, and productivity. These type of workplaces were pioneers in implementing a human approach to design, a trend which is catching up among real estate developers, landlords, and companies.
From trend to mainstreamThe Oxford English Dictionary defines normal as: “the usual, typical, or expected state or condition.” As Sara King notes in this article, coworking could arguably be classed as a ‘new normal’ for workplace requirements. And we think that’s spot on.
Coworking has become the new normal in that it has become the expected and preferred workplace of today’s workforce. This is evidenced in the fact that large companies are increasingly seeking to enhance the workplace experience as a means to attract and retain talent, and that a significant percentage of workers who have the option to work from home or a coffee shop prefer to work from a coworking space.
Coworking has come a long way since 2005, when the first modern day coworking space opened; and while there is no sweet formula to getting the ‘perfect’ space, operators of all shapes and sizes have enhanced their service offering to meet the demands of their market. Consequently, in the past few years we’ve seen operators adopt hybrid workplace models, we’ve seen operators open niche spaces, and we’ve seen billions of dollars invested in the industry.
Numbers that back up the growth and potential of coworking (updated, May 2019)Statistics gathered from reports published in 2019
- There are approximately over 35,000 flexible workspaces in the entire world, which represents 521 million square feet of flexible space.
- The global market value of flexible workspaces is estimated at an approximate $26 billion.
- Up until 2022, the number of coworking spaces is expected to grow at an annual rate of 6% in the U.S. and 13% elsewhere.
- The amount of coworking space leased and its share of total office space rose by almost half in only 18 months, from the end of 2016 through mid-2018.
- In 2018, the number of coworking spaces rose 16% in the U.S. and 36% outside the U.S.
- Between 2014 and end of 2018, the number of flexible workspace locations expanded by +205% while the number of operators expanded by +138%.
- 40% of flexible workspace demand is forecast to come from large and corporate companies.
- 14% of employees at large companies use coworking spaces.
- The average coworking space requirement continues to increase year after year, with the average client taking 7 desks.
- 72% of coworking operators say they expect to see further industry consolidation, with 58% believing consolidation is a great opportunity.
- In 2018, flexible workspaces accounted for more than two-thirds of the U.S.office market occupancy gains.
- By 2030, the flexible workspace market is expected to represent 30% of U.S. office stock.
- Coworking spaces accounted for almost 10% of space leased in Manhattan in the first half of 2018.
- Demand of flexible workspace solutions from corporate clients increased by 21% in 2018.
- Europe is forecast to see 255 million square feet of flexible space in 2019, which represents a 12% increase.
- Flexible workspaces are expected to make up 7% of the London Commercial Real Estate market in 2019.
- In 2018, active flexible workspace locations totaled 11.5 million square feet in London, with a further 3.0 million square feet expected to blaunched between now and 2020.
- Coworking in Asia-Pacific has the highest share of the overall office stock at 2.1%, comparatively in Europe and North America the share is around 1.0%.
- 15% and 5% Proportion of Grade A office space occupied by flexible workspace operators in prime office areas of Bangalore and Singapore.
- In 2018, flexible workspaces accounted for 16% of prime grade net absorption in Shanghai, 10% on Hong Kong Island, 8% in the five central wards of Tokyo, and 45% in Singapore.
Colliers International — U.S. Flexible Workspace Outlook Report, The Flexible Workspace Outlook Report 2019 EMEA, Occupier Profiles
Gensler — U.S. Workplace Survey 2019
JLL — Flexible Workspace Markets 2019
Instant Offices — Flexible Workspace Trends and Predictions, GCUC presentation
Cushman & Wakefield — European Coworking Hotspot Index
Read the full article HERE