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Tri Vo & Jeremiah McNair
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Eliza Martin & Langa Chinyoka
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2020 looked like coworking’s funeral. When offices shuttered and employees rapidly shifted to virus-free remote work, there were whispers that coworking, that rent-an-office model that became so popular among freelancers, agencies, and digital nomads, was on the outs—in spite of WeWork’s tremendous effort to carry the banner for the space.
But now, post-pandemic life is inching back toward in-person experiences. And while many companies see an opportunity to reduce their real estate overhead, they still value good, old-fashioned facetime. That might be coworking’s ticket back to paradise. The Wing reopened its doors in May, and WeWork is in the middle of an up-from-the-ashes rebrand.
for a while
5.
The future is flexible
Not just for
freelancers
anymore...
Boundaries
wanted
Call it a
comeback
Few are
itching to return
It’s Alive!
What does the future of coworking hold? Here are the reasons that you or someone you know might head into a coworking space sooner than you anticipated.
Select the first glowing dot to begin.
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the
work-life balance
genuine
trust
intentional
check-ins
protect
the deep
work
rethink the
commute
the
1-on-1
It’s Alive!
Yes
Next
Few are itching
to return
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Boundaries wanted
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Not just for freelancers anymore...
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The future is flexible
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The
Work-Life Balance
Yes
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the comeback kid
Alice Carleton
coworking:
Think COVID killed coworking? Not so fast. The hottest business craze of 2018 is back and poised to be a key component to getting back to an office.
W
O
K
R
1
2
3
4
5
6
Think COVID killed coworking? Not so fast.
The hottest craze of 2018 is back and poised to be a key component to getting back to an office.
The global coworking spaces market dipped in 2020—to $8.24 billion—but it’s expected to bounce back, reaching $11.52 billion by 2023, with a compound annual growth rate (CAGR) of 11.8%.
$11.52 billion
2020
2019
8.24B
11.52B
2023
9.27B
Central offices are gone, but coworkers still want to work together (at least sometimes). Bosses seem to care most about flexibility and reducing the overhead that comes with office upkeep. And as employees try to figure out what works best for their jobs, many are realizing that it isn’t a rigid eight-hour day at headquarters. Coworking spaces seem primed to fill the void.
What does it all mean
of workers want flexible work options to continue, while at the same time over 65% want more in-person time with their teams.
70%
of executives say they want to return to the office as it was pre-pandemic.
>20%
Commercial vacancy rates will rise from 17.1% in 2020 to 19.4% in 2021 (the previous high was 17.6% in 2010).
19.4%
of executives expect to change their real estate strategy over the next 12 months—including consolidating office space in primary locations and/or opening satellite locations. Over two-thirds of decision makers are considering redesigning physical spaces to accommodate hybrid work environments.
87%
The pandemic has blurred the lines between work hours and the rest of the day, leaving 54% of employees reporting that they’re overworked. 39% said they’re exhausted and 41% said they’re thinking about leaving their jobs.
54%
of employees say the office is important for collaborating with team members and building relationships—their top-rated needs for the office.
87%
The next phase of work will bring more established boundaries, but it’ll maintain
the self-determination and flexibility of the past year. Working together will mean accommodating different styles, schedules, and potentially locations.
What does it all mean?
“There's this feeling that all of a sudden the boundaries are gone—‘my boss somehow thinks he can wake me up at seven and keep pinging me at seven or eight or nine p.m. We think it's important for people to recognize (that) humans perform better on a schedule.” - Jared Spataro, CVP Microsoft 365 (Bloomberg)
Coworking spaces are in a prime position to be integrated into business decision makers’ plans for a flexible, partly-remote future. They could function as
a stop gap for remote workers transitioning away from the 9-5 schedule at the central office.
WHAT does it all mean?
of remote workers that have never used coworking spaces before will consider joining one as a remote work solution in the future. (all work)
54.9%
of the occupants of coworking spaces are actually remote workers, according to a study from the Harvard Business Review. 29% are contractors, part-time employees, and business owners.
71%
of workers that used coworking prior
to the pandemic plan to return to it. (all work)
71.5%
Exclusive, in a cool way? To address capacity concerns and put a premium on the space, some coworking spaces are limiting membership and adopting club-like models. While traditional member models for coworking spaces focused on renting desks and pods, some potential exclusive coworking spaces could offer members free reign in a unique space engineered to facilitate different types of work. This niche market existed before the pandemic, and Tassey thinks it’s likely that we’ll see more of them soon. “This time around, coworking spaces won’t conflate real estate and community. It doesn’t scale well,” says Tassey. Spaces will have to do more to prove their commitment to community than just say it. “Something like Soho House will do really well.”
Exclusive, in a cool way?
Coworking Communities: As traditional coworking spaces abandon renting models, coworking communities are emerging to offer more than just space. These communities—which also provide opportunities for networking, events, and mentorship—are on the rise in place of spaces which only purport to foster community.
These will be especially popular for underrepresented communities. According to research from Deskmag, coworking spaces have become increasingly popular among women, who make up about 40% of the coworking workforce. And spaces are also opening to support BIPOC communities. Ethel’s Club, which formed in late 2019 and survived 2020 as a virtual organization, has conducted online events to create community and is primed for its IRL opening. “I felt there needed to be a space that centered people of color in all the ways that they exist. Whether that’s through wellness or culture or just networking,” said founder Naj Austin to Well+Good. “And so we started up Ethel’s Club to become that space for people.”
Coworking Communities
No B.S.: The coworking boom was defined by the idea that the biggest players in the game claimed to be reinventing the future of work. Now, people just want to finish the job and go home. With many companies reviewing their internal ethics and inclusivity, promises of changing the world through coworking ring a little false.
According to Tassey, the fervor at the height of the coworking craze was unsustainable. “The market was very oversaturated with no substance. What we’re seeing now is a realignment of what coworking actually is,” she says. “There needs to be a simplified mission … a tighter definition.”
no b.s.
Home rooms: The open layout that many standard offices have been driving toward is being abandoned in favor of private spaces, “neighborhoods,” and team rooms—these spaces facilitate more focused work, but they could also reduce the spread of airborne viruses. Realtors and landlords will have to find ways to modify their spaces to be flexible for teams and companies of all sizes.“Hot seating,” a first-come, first-serve model of sharing monitors and desks in collaborative work environments, is more suited to the flexible work schedule and lets more people work in smaller spaces. Noelle Tassey is the CEO and founder of Alley, a community-driven company which once operated on a coworking model. “We’re not doing the traditional membership model, where people pay to rent desks,” she said. And no, the selling point won’t be kombucha on tap.
Home rooms
Flexible work week: In the future work week, many employees won’t have such a rigid schedule. Starting in September 2021, Google will adopt the “flexible work week,” balancing three “collaboration days” with two work-from-home days. Across companies and industries, you could see many different kinds of work arrangements, but all of them include time outside of a central office—and that’s good news for coworking spaces. Plus, some companies that support fully-remote work might open an account with a coworking space to give their employees a physical workspace.
Flexible work week
So what’s the future of work going to look like? Rented rooms and cubicles? Swanky membership clubs? Rows of unassigned, first-come-first-served desks? Regardless, coworking spaces are especially flexible and can be reconfigured any way they need to be. Here are a few ideas that companies, designers, and employees are considering for future office spaces:
Business Wire, Coworking Spaces Global Market
Report 2020-30: COVID-19 Growth and Change, June 2020.
Microsoft, Work Trend Index, 2021.
PWC, US Remote Work Survey, 2021.
Sources:
We’re already seeing coworking make its tentative resurgence, but the coworking giants of the past probably won’t be the coworking giants of the future. In the post-COVID working world, coworking is all about working within a community—and listening to what that community wants. Now more than ever, coworking spaces need to be flexible and responsive, and with new niches popping up to service newly realized needs, listening to members is the only way to keep them.
And with the “Great Resignation” in full swing, coworking members and office employees are feeling even more emboldened to leave a place that doesn’t serve them. So if they want kombucha on tap, let it pour. But if they just want a no-frills office space that actually cares about them, that might be enough.
, 2020 looked like coworking’s funeral. When offices shuttered and employees rapidly shifted to remote work, there were whispers that coworking, that rent-an-office model that became so popular among freelancers, agencies, and digital nomads, was on the outs—in spite of WeWork’s tremendous effort to carry the banner for the space.
for a while
See the signs
But now, post-pandemic life is inching back toward in-person experiences. And while many companies see an opportunity to reduce their real estate overhead, they still value good, old-fashioned facetime. That might be coworking’s ticket back to paradise. The Wing reopened its doors in May, and WeWork is in the middle of an up-from-the-ashes rebrand.
W
O
R
K
It’s Alive!
Few are
itching
to return
Boundaries
wanted
It’s Alive!
Call it a comeback
The future
is flexible
Not just for
freelancers
anymore...
The global coworking spaces market dipped in 2020—to $8.24 billion—but it’s expected to bounce back, reaching $11.52 billion by 2023, with a compound annual growth rate (CAGR) of 11.8%.
$11.52 billion
You got it?
Yes
Next
You already got it.
Select the first glowing dot to begin.
Few are itching to return
of workers want flexible work options to continue, while at the same time over 65% want more in-person time with their teams.
70%
You got it?
prev
Next
You already got it.
Boundaries wanted
Less than one in five executives say they want to return to the office as it was pre-pandemic.
13% of executives are prepared to let go of the office for good.
Most executives (87%) expect to change their real estate strategy over the next 12 months — including consolidating office space in primary locations and/or opening satellite locations.
Over the next three years, 56% of executives expect they’ll need to
invest in more office space — the others anticipate that they’ll need less.
Over two-thirds of decision makers are considering redesigning physical spaces to accommodate hybrid work environments.
What the data means:
Right now, companies seem to be investing in remote work to varying degrees. What seems clear is that the primacy of the centrally located office is long gone. Flexibility — and reducing the overhead that comes with office upkeep — seem important to bosses.
54%
You got it?
prev
Next
You already got it.
Not just for freelancers anymore...
of the occupants of coworking spaces are actually remote workers, according to a study from the Harvard Business Review. 29% are contractors, part-time employees, and business owners.
71%
You got it?
prev
next
You already got it.
The future
is flexible
Coworking spaces are in a prime position to be integrated into business decision makers’ plans for a flexible, partly remote future. They could function as a stop gap for remote workers transitioning away from the 9-5 schedule at the central office.
59%
You got it?
prev
Next
You already got it.
Call it a comeback
We’re already seeing coworking make its tentative resurgence, but the coworking giants of the past probably won’t be the coworking giants of the future. In the post-COVID working world, coworking is all about working within a community—and listening to what that community wants. Now more than ever, coworking spaces need to be flexible and responsive, and with new niches popping up to service newly realized needs, listening to members is the only way to keep them.
$1.9 TrILLION
You got it?
prev
Next
You already got it.
0/6 completed
1/6 completed
2/6 completed
3/6 completed
4/6 completed
5/6 completed
6/6 completed
you're ready to cowork
at an office!
home
HERES A LOOK
AT WHERE WE
STAND
undo
Yes
No
undo
Yes
No
undo
undo
undo
undo
Yes
No
Yes
No
Yes
No
Yes
No
the
work-life balance
trust in a
hands-off
way
intentional
check-ins
protect
the deep
work
rethink the
commute
the
1-on-1
Click below to review.
87%
The next phase of work will bring more established boundaries, but it’ll maintain
the self-determination and flexibility of the past year. Working together will mean accommodating different styles, schedules, and potentially locations.
What does it all mean?
The pandemic has blurred the lines between work hours and the rest of the day, leaving 54% of employees reporting that they’re overworked. 39% said they’re exhausted and 41% said they’re thinking about leaving their jobs.
of employees say the office is important for collaborating with team members and building relationships—their top-rated needs for the office.
54.9%
Coworking spaces are in a prime position to be integrated into business decision makers’ plans for a flexible, partly-remote future. They could function as a stop gap for remote workers transitioning away from the 9-5 schedule at the central office.
WHAT does it all mean?
of remote workers that have never used coworking spaces before will consider joining one as a remote work solution in the future.
So what’s the future of work going to look like? Rented rooms and cubicles? Swanky membership clubs? Rows of unassigned, first-come-first-served desks? Regardless, coworking spaces are especially flexible and can be reconfigured any way they need to be. Here are a few ideas that companies, designers, and employees are considering for future office spaces:
>20%
of executives say they want to return to the office as it was pre-pandemic.
Nearly half of workers are planning to move because they can now work remotely.
87%
of executives expect to change their real estate strategy over the next 12 months—including consolidating office space in primary locations and/or opening satellite locations. Over two-thirds of decision makers are considering redesigning physical spaces to accommodate hybrid work environments.
19.4%
Commercial vacancy rates will rise from 17.1% in 2020 to 19.4% in 2021 (the previous high was 17.6% in 2010).
Central offices are gone, but coworkers still want to work together (at least sometimes). Bosses seem to care most about flexibility and reducing the overhead that comes with office upkeep. And as employees try to figure out what works best for their jobs, many are realizing that it isn’t a rigid eight-hour day at headquarters. Coworking spaces seem primed to fill the void.
71.5%
of workers that used coworking prior
to the pandemic plan to return to it.
And with the “Great Resignation” in full swing, coworking members and office employees are feeling even more emboldened to leave a place that doesn’t serve them. So if they want kombucha on tap, let it pour. But if they just want a no-frills office space that actually cares about them, that might be enough.
What does the future of coworking hold?
Here are the reasons that you or someone
you know might head into a coworking space sooner than you anticipated.
2020
2023
8.24B
11.52B
2
1
3
4
5
6
2019
9.27B
“There's this feeling that all of a sudden the boundaries are gone—‘my boss somehow thinks he can wake me up at seven and keep pinging me at seven or eight or nine p.m. We think it's important for people to recognize (that) humans perform better on a schedule.” - Jared Spataro, CVP Microsoft 365 (Bloomberg)
Flexible work week: In the future work week, many employees won’t have such a rigid schedule. Starting in September 2021, Google will adopt the “flexible work week,” balancing three “collaboration days” with two work-from-home days. Across companies and industries, you could see many different kinds of work arrangements, but all of them include time outside of a central office—and that’s good news for coworking spaces. Plus, some companies that support fully-remote work might open an account with a coworking space to give their employees a physical workspace.
Home rooms: The open layout that many standard offices have been driving toward is being abandoned in favor of private spaces, “neighborhoods,” and team rooms—these spaces facilitate more focused work, but they could also reduce the spread of airborne viruses. Realtors and landlords will have to find ways to modify their spaces to be flexible for teams and companies of all sizes.“Hot seating,” a first-come, first-serve model of sharing monitors and desks in collaborative work environments, is more suited to the flexible work schedule and lets more people work in smaller spaces. Noelle Tassey is the CEO and founder of Alley, a community-driven company which once operated on a coworking model. “We’re not doing the traditional membership model, where people pay to rent desks,” she said. And no, the selling point won’t be kombucha on tap.
No B.S.: The coworking boom was defined by the idea that the biggest players in the game claimed to be reinventing the future of work. Now, people just want to finish the job and go home. With many companies reviewing their internal ethics and inclusivity, promises of changing the world through coworking ring a little false.
According to Tassey, the fervor at the height of the coworking craze was unsustainable. “The market was very oversaturated with no substance. What we’re seeing now is a realignment of what coworking actually is,” she says. “There needs to be a simplified mission … a tighter definition.”
Coworking Communities: As traditional coworking spaces abandon renting models, coworking communities are emerging to offer more than just space. These communities—which also provide opportunities for networking, events, and mentorship—are on the rise in place of spaces which only purport to foster community.
These will be especially popular for underrepresented communities. According to research from Deskmag, coworking spaces have become increasingly popular among women, who make up about 40% of the coworking workforce. And spaces are also opening to support BIPOC communities. Ethel’s Club, which formed in late 2019 and survived 2020 as a virtual organization, has conducted online events to create community and is primed for its IRL opening. “I felt there needed to be a space that centered people of color in all the ways that they exist. Whether that’s through wellness or culture or just networking,” said founder Naj Austin to Well+Good. “And so we started up Ethel’s Club to become that space for people.”
Exclusive, in a cool way? To address capacity concerns and put a premium on the space, some coworking spaces are limiting membership and adopting club-like models. While traditional member models for coworking spaces focused on renting desks and pods, some potential exclusive coworking spaces could offer members free reign in a unique space engineered to facilitate different types of work. This niche market existed before the pandemic, and Tassey thinks it’s likely that we’ll see more of them soon. “This time around, coworking spaces won’t conflate real estate and community. It doesn’t scale well,” says Tassey. Spaces will have to do more to prove their commitment to community than just say it. “Something like Soho House will do really well.”
Flexible work week
Home rooms
no b.s.
Coworking Communities
Exclusive, in a cool way?
What does it all mean
Business Wire, Coworking Spaces Global Market
Report 2020-30: COVID-19 Growth and Change, June 2020.
Sources:
Microsoft, Work Trend Index, 2021.
PWC, US Remote Work Survey, 2021.