Co working space is a space in which individuals of different companies independently or collaboratively share a workspace, allowing cost savings and convenience through the use of common infrastructures such as equipment, utilities, receptionist and custodial services, refreshment and parcel acceptance services.
‘Coworking’ was first used by Bernie DeKoven in 1999 to describe collaborative work supported by computers and new technologies of the day.
‘Coworking’ as we know today involves physical space that was first used in 2005 by Brad Neuberg. He described it as a physical space where independent and mobile workers came together to work in a free environment. He wanted to combine a sense of freedom and independence to work by himself with a sense of community and a structure to working with others. Neuberg worked with a life coach named Audrey Seymour and created a three-part plan to start the first coworking space, known as “San Francisco Co working Space“.
Growth of Co working Space
As new-age work culture began to offer flexibility, the growth of coworking spaces increases effectively around the world. Soon the concept of coworking space sparked throughout the Nation. The first co working space in New York City, Brooklyn Coworking, opened in 2006. Jelly, which encouraged remote workers to meet in one place, was also established in 2006 and expanded to cities such as Austin and Phoenix in 2007. The year 2007 was the major breakout year for the growth of Co working space. Many co working spaces began to open around the world and major media outlets started to spread awareness about the workspace.
As per statistics gathered from reports published in 2019 by allwork.space:
- There are currently 14,411 Coworking spaces around the world today, and the global market value is estimated to be $26 billion.
- Between 2014 – 2018, the number of coworking space locations expanded by +205% while the number of operators expanded by +138%.
- The average coworking space requirement continues to increase year after year, with the average client taking 7 desks.
- Up until 2022, the number of coworking spaces is expected to grow by more than 30,432 and over 5.1 million coworking members.
In India, the number of coworking spaces is also rising. According to a 2017 report by real estate firm CBRE, there are 350 shared office operators spread across more than 800 locations in India. Coworking business in India is becoming very popular in the metro city as Tier 2 and Tier 3 cities of India. If considered the top seven cities, the co-working office lease share increased 5% in 2017 to 8% in 2018 and in 2019, it increased further to 12%.
Why Co working Space became so popular?
There are a whole lot of benefits of coworking spaces provide that won’t be available if you lease an office in the corporate workspace. One doesn’t have to think about paying for the internet, coffee machines, cleaning administration and other facilities as the management of the coworking space will take care of it. Working in a community-oriented office space means that you get a lot of opportunities to grow your network, which is very significant in the growth of your business.
If you think co working space is only for startups and entrepreneurs then you are wrong. In fact, members of coworking spaces are incredibly diverse. A study shows that the demand for 40% of spaces is expected to come from large and corporate companies.
Coworking for Small Businesses
For small businesses, coworking spaces don’t come with the high cost and no long-term leases to commit to and everything is generally available to run the business, from meeting rooms to kitchens. These spaces can also help entrepreneurs find a co-founder for their start-up by connecting the right people, where you can pitch your ideas to grow your business.
Coworking for Freelancers
For freelancers, coworking spaces provide the best of both the worlds: flexibility when & where to work and being part of the community otherwise they are forced to work alone in isolation at home, or a coffee shop.
Coworking for Corporates
Due to the benefits to the employees, an increase in productivity from happiness and opportunities for networking with people outside their domains large companies are looking for coworking spaces.
Types of Co working Space
The types of coworking spaces are endless from a hot desk to a dedicated desk, to private cabins/offices for those who prefer separate space but still want to be connected with the community.
Big Companies that started at a Coworking Space
- Uber– Travis Kalanick and Garrett Camp started off in a coworking space to eliminate the terrible taxi problems of San Francisco and later expanded to Uber Eats, Uber Freight and Uber Help offering various transport-related services around the world.
- Indiegogo- one of the largest crowdfunding website started in 2008 supporting every type of startup or possible idea.
- Spotify- one of the amazing tech startups began there journey in coworking space named RocketSpace.
- Instagram- Despite some challenges in the way of Mike Krieger and Kevin Systrom managed to develop the Instagram app in a co working space in 8 weeks.
With so many benefits that a coworking space provides for different sets of people, it is no surprise that the co-working culture is growing rapidly. The shared space industry is growing rapidly and looks like it is here to stay with fast adoption by major startups and freelancers alike. Are you planning to move your team to a co working space too? Let’s talk!