5/8/2019

Is the Coworking Market Saturated?

With the rapid growth of coworking spaces, people have begun to wonder if the market has reached its peak demand, and whether it has become too saturated. While experts believe that “coworking’s growth in the U.S. and Europe will slow over the next five years,” it has become apparent that there is still plenty of room for the coworking market to grow and continue to be profitable. Here is a coworking space industry analysis of what the future might hold for the industry.

Coworking Market Size

In 2019, the number of global coworking spaces available was at 18,900. That number is expected to reach over 30,000 in 2022, which means the market will grow by an impressive 16.1% per year for the next couple of years. The market may seem saturated, but the number of global members is expected to grow even faster, jumping up to 5.1 million in 2022 from just 1.74 million in 2017. The coworking market size, even though it is growing quickly, is still struggling to keep up with the demand.

Shift in Demand

The needs of coworkers are beginning to change and shift away from what it was in years past. Jonathan Puleio from Humanscale believes that large companies are the cause of this change. “There’s a shift to larger companies, they are now engaging with flexible workspaces and they have a different set of needs than smaller companies. They also have higher expectations.”

WeWork is one example of a company that has been growing to meet that demand and has even launched a brokerage service this year address it. The company stated that it will offer workspace to both small and mid-sized companies, regardless of their requirements.

Space Efficiency

Another way demand is shifting is in the popularity of private offices. More than 75% of all coworking spaces have members renting private offices. Interestingly, the desks are not used by just one member, but instead interchangeably between multiple members.

A survey of coworking spaces has found that the bigger the coworking space, the more likely space is going to be used by private offices. For coworking businesses, the private offices do generate more income than a desk workspace, which has dropped in price recently. Because more space is taken up by private offices, that means there needs to be a growth of coworking spaces to meet the demand of coworkers, which may be the reason for thenotion that the coworking market is saturated.  

WeWork Going Public

Launching back in 2010, WeWork quickly became one of the most valuable and popular startups in America. It used outside investments to stay profitable in New York, despite expensive real estate costs. While WeWork posted a profit of $1.8 billion in 2018, it also had losses of $1.93 billion. It can be argued that this lack of profit is normal and healthy during a period of growth, and we should expect that WeWork will soon shift to a more sustainable business model.

Industrious Acquires TechSpace

Another New York-based company, Industrious, has acquired TechSpace, a coworking business. Industrious, which works with landlords to manage office space in revenue sharing agreements, is expanding rapidly. This acquisition seems to indicate that fewer people are looking for traditional commercial office space. This acquisition fits the shift in demand that coworking spaces are seeing across the country, as more companies aren’t abandon traditional commercial spaces.

These major acquisitions of fast-growing spaces are reminiscent of the aggressive takeovers commonly seen in the tech startup scene. Coworking spaces are shifting and expanding their business models faster than the industry as a whole can keep up with. However these acquisitions mean that these companies are doing something right and are attracting enough attention (and members) to be valuable to the major players. Overall this falls in line with the positive trajectory of the industry.

A survey in 2019 that found that “in the U.S., 18% of coworking operators say there are too many coworking spaces; 69% say the amount is just right, and 13% say there are too few coworking spaces.” These findings and more show that the growth of coworking spaces is likely to continue over the next couple of years, as more businesses are formed to meet the growing demands of remote workers.

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3. Benefits of Tagging Others

Social data also describes the interaction between social media users. While comments, likes, and shares are the most obvious forms of interaction on social media, tags are another form of communication between social media users. 

Tagging is one of the most effective tips for coworking on social media. When it comes to promoting your coworking space, tags do an amazing job at increasing your visibility. On Facebook, for instance, your post will have more reaches if you tag others:

Image credit: CENTRL Office

If you often organize events at your coworking space, you can tag the participants. If you have some special offers, tag someone who helps you promote them. Any tag conveys social data, as it transfers information from one user to another. It’s a great way to become more visible online and attract potential clients. 

In Conclusion

Like any other big data, social data has limitations, as not every social media user shares information. Nevertheless, social data is still very effective for marketing purposes, as it can help your coworking space become more recognizable. 

Using the above-mentioned social data techniques together will help you increase visibility, as they will help others find your coworking space more easily. In general, these techniques are aimed at targeting large numbers of people and help them easily navigate the space of social media to find the best coworking spaces. 

Platform

Location

Croissant

International

Included.co

International

Hubble

London

Coworker

International

Instant Offices

International

Pickspace

International

Share Desk

International

Happy Desk

International

DesksNear.me

International

DeskTime

International

Coworking London

London

Desk Pass

International

Copass

International

Coworking Wiki

International

Desk Surfing

International

Near Desk

US

Liquid Space

International

GoCoWo

International

Find Workspaces

US

Sneed

India

Ofixu

International

Meetings Booker

International

Qdesq

India

eWorky

International

Share your office

US

Spacelist

US and Canada

42 Floors

US

Office List

US and Canada

Coffices

International

Breather

US, Canada, Europe

Setting

Berlin

Key to Office

International

Peerspace

US and Europe

Bizly

US

Spacewhiz

India

Beewake

US and Europe

Awfis

India

Allofficecenters

Germany

Splacer

US

Lexc

International

Desk Camping

International

Worksnug

International

Seats 2 Meet

US

Coworking.Coffee

International

Commercial Cafe

US

Preferred Office Network

US

Heydesk

International

Office Freedom

International

Flexas

International

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