Tag: co-working

Co-working: the new normal

Co-working spaces, shared office spaces that are typically used by the self-employed or those working for various different companies, are soaring in popularity the world over.

“So much so,” said Linda Trim, Director at workplace design specialists Giant Leap, “that working in a co-working space is rapidly becoming the new normal even for those who have traditional 9 to 5 jobs.”

Trim noted than there are currently 14 411 co-working spaces around the world today making it fastest growing type of commercial property. Globally, shared workspaces have grown at an rapid rate of 200% over the past five years. In global cities like London, New York and Chicago they are expanding at an annual rate of 20%.

“Co-working places are rapidly becoming the workplace of choice. Globally they are expected to be close on 4-million people who will be members of a co-working office by 2020 and that number is expected to rise to over 5-million by 2022.”

Trim added that in South Africa the trend is not as developed as it is in countries like the US, but is quickly catching on. “In major business nodes like Sandton for example, co-working places are springing up all over. For instance FutureSpace is a high end co-working space that is as appealing as WeWork, the hugely successful American co-working company that has offices in 21 countries.”

Co-working became an attractive concept because when it first started to appear, it countered the negative views of the traditional office of drab interiors with tired people spending their lives in cubicles under harsh neon lights.

“If we look back to just a few years ago, co-working was considered to be a movement or a trend, with many believing it would fade. But now co-working is a full-blown industry that is disrupting the real estate industry and the way people work.

They 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 of course companies.

“For now co-working is today’s normal.”

The extent to which co-working has gone mainstream 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 co-working space.

Said Trim: “By 2020, we expect 50% of large companies to have some form of shared office space to offer their workers.”

She also noted that co-working spaces were having a very positive impact on people. 84% of people who use co-working spaces are more engaged and motivated while 89% who co-work report being happier.

“The co-working phenomenon has also spurred companies to make their existing offices much more people friendly and relaxed,“ Trim noted.

“On many of our briefs now we are told to design something that makes people feel they are in a relaxed environment somewhere between a coffee bar and their lounge at home.”

She added that the growth in co-working spaces will likely remain strong with a forecasted growth rate of 15% over the next 5 years.

Co-working spaces, the trend that is shaking up the traditional workplace model the world over, is set to cause a dramatic change in how and where people work in South Africa.

Linda Trim, director of FutureSpace – a joint venture between Investec Property and workplace specialists Giant Leap that offers high end co-working space, says that in 2016, there were approximately 11 000 co-working locations around the world.

“But this figure is expected to more than double to 26 000 by 2020. By comparison, there are approximately 24 000 Starbucks locations worldwide. Taking a cue from the popular reference to the coffee giant’s location strategy, that means there may soon be a co-working space on every corner.”

Trim noted that co-working spaces were increasingly popular with strong demand for FutureSpace’s offices.

“We already have steady 80% occupancy rate only three months after launching.”

FutureSpace plans to open further offices around South Africa, a possibly overseas in 2018 such is the demand.

The biggest shift Trim expects to see in the coming years is that co-workspace will become a key component of many companies’ workplace and real estate strategies — for occupiers and building owners alike.

“Flexible workspace is not just for millennial freelancers or tech startups anymore. Large, multinational companies are increasingly taking on space at flexible workspace operators or integrating shared working spaces into their own environments,” she noted.

For example, Microsoft recently shifted 70% of their sales staff in New York City to flexible workspace. Large employers already make up the fastest growing market for shared workspace provider and many businesses’ preferences are moving toward short-term real estate contracts with flexible provisions.

Companies like IBM and Microsoft have begun to outsource the design, building and management of some of their workspaces to third parties.

Says Trim: “In the same way we now purchase many technologies as services rather than as software, the future of ‘space as a service’ looks bright.

“This model provides companies with a way to access space in an on-demand fashion, drawing on the knowledge of outside experts in a way that frees them to focus on their own core businesses.”

Building owners are also finding opportunities to revitalise underused spaces by transforming them into the type of shared work areas that are increasingly in demand.

Already, many occupiers won’t consider a building without available flexible space. To remain relevant, commercial office buildings will need to create spaces that attract people to connect and collaborate — both within the office and outside of it.

In South Africa, as in the rest of the world, companies will soon need to think more about accessing office space than owning or leasing it.

This paradigm shift will require an evaluation of “core” and “flexible” space needs.

Core space is the real estate a company must rent or own over the long term for the business to function. Flexible space is the real estate that can be deployed quickly without long-term commitment, adjusting in near “real time” based on needs.

“By categorising space needs this way, businesses can make better decisions about how to execute a real estate strategy that minimises cost and maximises opportunities,” Trim adds.

One of the best examples of large companies adopting the flexible co-working workspace approach in Asia is HSBC’s recent contract for 400 desks in WeWork’s Tower 535 in Hong Kong.

“It created the right environment for their staff, working in the same location as other like-minded teams, including Hong Kong’s fin techs and other startups,” says Trim.

By making flexible workspace an integral part of an organisation’s workplace strategy, companies can not only provide employees with a valuable opportunity for choice and connectivity, but they can realise meaningful benefits thanks to flexibility.

In balancing core and flexible space needs, companies can reduce financial risks related to long-term space needs and be nimble in making changes as needed.

“Building owners can benefit from transforming underutilised spaces into shared working areas, which in turn can help attract and retain tenants, “ Trim concludes.

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My Office News Ⓒ 2017 - Designed by A Collective


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