For the first time in recent years, the estimated growth of new coworking spaces is expected to be less than it was the previous year. However, even though overall growth has slowed, with 1,688 worldwide, it is clear that the industry is still flourishing... This may be a reflection of the fact that a large percentage of coworking spaces are focusing on expanding their existing brands, while the majority of the industry is shifting focus to increasing occupancy rate and profitability of existing spaces.
According to a comprehensive review of coworking trends, nearly 35% of the businesses that opened are expansion or chain. The majority of the businesses opening are still firms, business owners, or entrepreneurs who are entering the market for the first time. These new spaces are fighting for a bit of the market share and are trying to establish a brand and niche for themselves. We’ve uncovered a few major reasons why the industry seems to be shifting away from the more straightforward growth of last year.
According to a study, coworking spaces are getting bigger each year and serving more members. While this coworking trend is nothing new, the study did reveal that the average occupancy increased to 1.2 members per desk, meaning coworking spaces are trying to fit more people into the same amount of space, with a 25% rise of private offices beginning to take over event spaces or common areas. Coworking spaces are squeezing more value out of the existing desks available while trying to listen to what the consumers want.
Changing Demands Of Consumers
When coworking spaces first became popular, people saw it is a great way to escape from the traditional office or their home office. Now, it has become so much more. Coworking spaces give their members the chance to interact with people from different companies and backgrounds.
Quality Over Quantity
One of the coworking trends the industry focuses on is the quality of the members over quantity. Coworking space that focuses on innovation, puts its members through a vetting process before they can become members. This unique system ensures that they are an excellent fit for space, and helps to retain their members for longer stretches of time.
When a coworking space first opens up, the main source of revenue stems from membership fees and packages, as well as renting out equipment. However, coworking spaces have quickly realized that the market demand is wide-open for them and that by maximizing the profitability per square foot, the coworking space can increase its profits.