If you ask someone from 2005 what a coworking space is, you might have gotten a blank stare for sure.
Fast forward 14 years later and now you see coworking spaces built right inside the heart of the world’s busiest cities.
Simply put, the rise of coworking spaces is a response to the increasing costs of leasing or owning an office space.
With more and more jobs requiring just a bit of desk space, computer or a laptop to accomplish, freelancers and startups have begun to flock to coworking spaces where they can work collaboratively and conveniently in their own time.
A few years ago, coworking spaces were considered more a passing “trend” – reserved for Hacker Labs, with many people thinking it was mainly for tech startups and developers getting together.
However, as this chart shows, the concept of coworking broadened and the rise of coworking spaces is going strong – with almost 18,000 coworking spaces listed worldwide in 2018.
Forecast of coworking spaces worldwide. Source: Statista
Not A Trend Anymore
From simply being a trend of groups working out of adhoc places, coworking spaces have evolved to something that is more sophisticated, connected, and almost required or expected by the local workforce, freelancers and digital nomads who rely on them to run their business or do their jobs.
Coworking spaces have taken up the niche that traditional libraries have given up to cafes – an accessible place and community that people can tap into or work quietly, efficiently and conveniently in their own space.
While there is no agreed norm as to what a coworking space should look like, how big it should be or what amenities it should offer, there are many big players and networks in the industry and a few standards have been set over the years.
Many of today's workspaces include:
- Flexible Membership Plans - daily, weekly or monthly
- Quick Set Up
- Shared Desks
- High Speed Internet
- Meeting Rooms
- Private Offices
- Kitchen Area
- Common Areas / Break Out Areas
Why Are Coworking Spaces Popular?
Today, there are more coworking space companies in the world than ever before. The evolution of human ingenuity is non-stop, and the continuously-changing landscape of how people work is pushing the coworking market into a new phase of demand for flexible office spaces among freelancers, startups, small and large business to major corporations.
The rising costs of renting or owning an office space is not the only factor that contributes to the ever-growing popularity of coworking spaces.
As people move to the cities for job opportunities, factors such as traffic and accessibility play a part, instead of wasting hours travelling or anxiously waiting for the traffic to move, the convenience of coworking spaces lets people choose to work local in a nearby coworking space instead, saving time, money and resources in the long run.
Of course, not all jobs can be performed within coworking spaces. Some traditional jobs still require face-to-face interaction and physical presence, and many employers are not completely comfortable with the idea of letting employees work outside the office.
Still, the growing demand for outsourced services, freelancers and startups make coworking spaces relevant in many modern jobs and careers.
People such as programmers, coders, virtual assistants, startup developers and remote workers will always need a place to work peacefully, quietly and conveniently without having to shell out a lot of money for an office space.
This is the industry where coworking spaces make their biggest impact.
Important Data To Consider
- Since 2006, the number of coworking spaces worldwide grew from less than 50 to more than 18,000 in 2018.
- The number of people using coworking spaces will rise to 3.8 million by 2020.
- And in the US alone, there will be over one million coworking members by 2020.
- Freelancers, independent contractors and part-time professionals will make up to 40% of coworking members.
What To Expect for The Future Of Coworking Spaces
As modern jobs start to grow in demand, so do coworking spaces. The old and traditional way of working 9-to-5 just doesn’t suit many businesses anymore – which is why coworking spaces got popular in the first place.
As rural cities around the world start to modernize, they too will experience the dilemma faced by today’s modern metropolis.
This will only prompt a bigger demand for coworking spaces in the future as a new way of working starts to take place.
Conclusion
Coworking is booming industry and will continue to thrive in 2019 and beyond.
The way we work has changed and will bring even greater demand for flexible work spaces among freelancers, startups, small and large business to major corporations in the coming years.
As people prefer and choose to work in culturally supportive and collaborative community environments, Coworking Spaces are a real opportunity for digital entrepreneurs and businesses to work leaner and smarter, and keep people working happy and productive!
What are your thoughts on what’s in store for the future of coworking?
Share your comments, questions and suggestions on this.
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Last updated: May 22, 2019
