1How thankful people are to coworking spaces around the world?
The growing phenomenon of co-working spaces – places where individuals can rent a desk of their own while sharing a range of other facilities with their co-tenants – is as indicative of the changing nature of work as almost any metric you care to name.
Although many see the casualisation of the workforce that this growth represents as an inherently bad thing – rightly focusing on the way in which technology is tending to convert full-time work into part-time “gigs” – there may well be a big upside. Co-working is a model that gives workers themselves, the digital nomads of gig economy, more control over their working lives.
How big is the sector? Small Business Labs, an organisation that monitors it around the world, suggests that the number of people renting such spaces will grow globally from just under 1m in 2016 to nearly 4m in 2020.
According to research by user experience researchers Melissa Gregg and Thomas Lodato, co-working can be a positive choice for many freelancers . They argue that, in part, such workers are seeking “relief from the emotional demands of the corporate office”.
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Co-working spaces, they write, “expanded significantly in the wake of the global financial crisis of 2008/9”, adding this “style of work emerged in response to the slow plod of austerity, hollowed-out corporations, underemployment and career insecurity”. They argue that “co-working spaces met a growing demand for care and fulfilment as much as employment”.
So is co-working a good thing in itself or simply a rational response to negative changes in traditional workplaces?
Gregg, who is principal engineer in the Business Client Research and Strategy Client Computing Group at Intel Corporation, says with all the variations of experience there is no simple answer to that.
Still, she says, “I regard co-working as the most optimistic example we have of conducting enterprise on our own terms. I like that it is often an experience of work that is determined by workers themselves.”
Isolation is one of the key problems that arises for freelancers and providing this sort of human contact – a community of fellow nomads – has become the secret sauce of the co-working industry, a large part of what makes it attractive. Karen Corr, founder of the Make A Change organisation, says it would never have got off the ground without the existence of the Synergize Hub in Bendigo but that it was ultimately the community experience that kept her there, even as her organisation grew.
Travel blogger Monika Pietrowski writes that after “a solid stint in the corporate world, I gave up the security, the scrutiny and the stress for a nomadic lifestyle”. She says that co-working communities have been central to this change and, although it can be hit or miss, the “biggest advantage for me is the people interaction and social setting”.
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Gregg and Lodato write: “Co-working spaces provide an environment in which professionals can anticipate, withstand and perhaps even wait out the volatility of the competitive job market that surrounds them.” So do they expect the labour market to return to a more traditional form, with less of the sort “gig” work that suits co-working?
“Not exactly,” Gregg says. “I think there is a pervasive sense of caution right now that co-working is a speculative economy in a classic sense – it is dependent on real estate and property value.”
Indeed co-working spaces have become an attractive choice for landlords, real estate agents and other firms looking to fill floorspace as more traditional tenants, such as retailers, close down. US figures indicate co-working may account for as much as 2% of the office market by 2020.
But for those who can “wait out” the job market changes, Gregg thinks they will have developed something “of long term, resilient value” with the co-working space as the centre of a useful network that would not otherwise have been available.
In fact, the researchers believe co-working could be a glimpse into a more positive future. They write, “A more just future of work may have less to do with labour hours, the creation of welfare programs or the opening of resources and more to do with hospitality: with whom, through what means, and in which environments we associate and affiliate with fellow workers.”
As attractive as this idea is, it could only work if it was underpinned with more formal means of security, something like a universal basic income. If co-working is to be anything more than a temporary response to precarity, don’t we need adequate state welfare measures in place?
“Absolutely we do,” Gregg says. “But the state manifests differently in context and it is hard to imagine how this works in Trump’s America, for instance.
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“Still, I like to think of co-working in terms of what philosopher Peter Sloterdijk calls ‘co-immunity’ – creating shared bubbles of protection that allow people the space to conduct the practices that help them realise their potential.”
Nonetheless, she notes, “I don’t pretend that co-working is suitable for all kinds of workers.” Some freelancers point out that the spaces can be noisy and hard to work in. Anis Qizilbash, who runs a sales training business, did several six-month stints but isn’t keen to continue. “I felt uncomfortable and it was hard to concentrate. Often there would be music playing and, being an introvert, I hated the open-plan workspace.”
There is not escaping the fact that the nature of work is changing, however, so it’s worth embracing the positive aspects of that change. What constitutes a job is no longer neatly bound by notions of a career, the nine-to-five, of 40-hour weeks and four-weeks’ holiday leave, and nor should it be.
Flexibility that empowers workers – as opposed to the sort of “flexibility” imposed from above by employers – should be welcomed and co-working spaces may enable that sort of change. It could be the testing ground for an entirely reimagined notion of employment.
“Co-working,” Gregg says, may well be “the millennial’s MBA”.
2Is there something coming in to replace Coworking or shared office spaces in Gurgaon?
Today, over one million people flock to coworking spaces they once chose as their own. However, a fraction of people forming part of the coworking movement have now rejected the singular space lifestyle in favour of a more flexible model. Indeed, a new wave of coworking has emerged. It’s built upon the hospitality industry and it’s brewing in New York.
Businesses forming part of the new coworking wave grant the right for members to work from a variety of high end restaurants, coffee shops and hotels. Those utilizing hospitality spaces target members who typically fit the perfect ‘hotdesk’ profile for commercial workspace providers. This means there are now more choices for the mobile workforce than ever before. The question is, will hospitality coworking models be successful enough to eradicate hotdesk memberships throughout traditional coworking spaces?
Spacious, Work Eat Play and KettleSpace are just a few new wave coworking companies to mention. All three are essentially technology platforms granting access to a variety of workspace venues within a short geographical distance of each other.
Spacious utilizes hospitality spaces during their closed hours with no obligation to reserve a workspace. Work Eat Play repurposes 5 star customer service restaurants during the day, with a ‘no minimum spend’ policy. KettleSpace upgrades restaurants into coworking spaces with added value benefits including member exclusive community events. With monthly memberships ranging from $49 - $95 per month, these companies are strong contenders for effective business model innovation within the coworking industry.
Decline of Hotdesk Memberships
One striking trend is the decrease in traditional hotdesk memberships. Is this trend real, why is it happening and could it contribute to the success of coworking within hospitality? Whilst global statistics show there are more hotdesk memberships than ever before, this is less a measure of their success and more a measure of the sheer growth of coworking spaces. The 2017 Global Coworking Survey by DeskMag confirms that the relative share of hotdesk memberships is shrinking significantly due to the rise of private office with fixed desks.
It is also heavily observed by those within the industry that hotdesk memberships have become increasingly difficult to sell over the years and as a result, hotdesk space is being redesigned for different membership types. Global coworking consultancy, OpenWork, concur with this notion. Drew Jones (PhD), Founding Partner at the consultancy, stated “the demand for hotdesks is decreasing rapidly.”
Growing Ratio in Favour of Private Office Space
When exploring the reasons why hotdesks are declining, two factors stand out as fuel to the fire. Firstly, there is a large expectation derived from financial models that selling multiple hotdesk memberships per physical desk creates a large revenue stream for coworking businesses. Secondly, many spaces fail to predict the large financial effect of significantly high churn rates of hotdesk memberships.
Jones emphasises that “theoretically, the numbers run wonderfully when financial models are built on the success of selling multiple hotdesks per seat, but in reality this never happens. Private offices provide an income much steadier and more reliable than hotdesks. For this reason, the ratio of private office space to hotdesk space has risen over the years to 85% versus 15%. This ratio is becoming more popular and some spaces now cap hotdesk memberships at an even lower percentage.”
Difficulty Making Profit from Hotdesk Memberships
OpenWork highlights how a decade ago, coworking spaces or shared office communities commonly consisted of one form of membership (similar to that of hotdesks) and pricing truly reflected the value of such membership. Yet, 10 years later, larger coworking companies pride themselves on a variety of memberships including private office space and fixed desks. As this has happened, the price of hotdesk memberships have hiked closer to that of fixed desks, but unfortunately the benefits of hotdesk memberships have failed to rise at the same rate. Many mobile workers therefore buy into the membership with high expectations, but leave with low levels of customer satisfaction.
For this reason, OpenWork frequently recommends that coworking spaces lower the price of their hotdesk membership to $99 per month (in the U.S.), to better manage member expectations and as a result, decrease churn rates. Despite the protection of effective pricing, hotdesks will arguably always experience higher churn rates than private offices due to the greater degree of flexibility required by the mobile workforce.
Secret Ingredient of Success for Coworking within Hospitality
As we cannot assume too much about the failures of traditional coworking, we must turn to the opportunities presented by the hospitality industry. KettleSpace Co-Founders, Daniel Rosenzweig, Nick Iovacchini and Andrew Levy, formed a team strong enough to pinpoint the key ingredient of success for coworking within hospitality. Whilst Rosenzweig has invaluable financial insights as a former real estate employee for one of the world’s largest coworking companies (underwriting 4.5 million square feet in 35 cities), Iovacchini is an established expert in the consumer product space as a restaurant owner and Levy has built multiple accelerator programmes as a former Twitter employee.
Rosenzweig states that “an asset light business model is the way forward. Traditional coworking requires a large amount of capital and carries high construction costs. The only way to achieve an asset light model with traditional coworking is to persuade the landlord to cover construction costs. However, this takes a very long time. Hence, we decided to leverage underutilized hospitality assets with no costs at all.”
Coworking within hospitality is not only built on the premise of being asset light, but also upon growth of the ‘coffee shop culture’. Starbucks may have started the trend, but there has been an explosion of boutique coffee shops, hotels and restaurants. Many possess large spaces with perfect work facilities, yet they suffer from slow service periods with empty space or they battle with laptop workers who jeopardize table turning rates.
Hospitality Brands Jump Onboard
Whilst coworking technology platforms may provide solutions to the problems above and utilize an array of boutique brands, the larger and more corporate hospitality brands are managing their own coworking facilities. CNN Travel recently released a list of smart business hotels with attractive workspaces to accommodate the mobile workforce, which is expected to form 42.5% of the workforce worldwide by 2022. Hotels declared by CNN as fit for business travel offer workspace as an added benefit for customers, whereas other hotels are creating coworking businesses for public membership.
The Commons Co-Op, by Virgin Hotels, launched as a new entrant to the coworking market in early 2017. They may not be asset light, but they capitalize on existing space and offer a coworking membership of $55 per month; a rate at least 75% less than the average hotdesk membership. It’s notable that many health clubs also have business lounges and it may not be long until they are similarly transformed into coworking businesses.
Will Hospitality Coworking Eradicate the Traditional Hotdesk?
Coworking within hospitality is still an extremely new trend with many businesses having opened in early 2017. The number of technology platforms utilizing hospitality space certainly suggests there’s an emerging market, with Virgin Hotels taking steps in the right direction. Whilst the likes of KettleSpace are excited by the global opportunity to penetrate dense urban environments (typically targeting cities with high living costs), OpenWork signals caution. Despite lower price points and greater flexibility, hospitality coworking businesses could face similar consumer challenges to traditional coworking hotdesks. Will membership be worth the benefits compared to working where you like at the price of a couple of lattes?
3Are Coworking Spaces In Gurgaon Profitable?
Would operators be able to wind up noticeably rich with cooperating spaces, or are their organizations quite recently consuming cash? It depends. The last is unmistakably less demanding than the previous. For most, the appropriate response lies in the center. Collaborating spaces don't work freely of market standards. There are cheap plans of action, and their organizers have similarly the same number of inspirations and objectives. What's more, similarly as anybody can overextend themselves, hit the big stake, or simply make back the initial investment with a bar, a bistro, or an eatery network, so too with collaborating spaces. By and large, consistently things go somewhat better, yet by and large, things are as yet not ideal. In this article, you'll perceive how things are looking.
As per self-announced figures, 40% of all collaborating spaces are beneficial. The rate has ascended for a long time running. In 2013, it was just 32%. On the other hand, the rate of cooperating spaces that lost cash saw a particular drop, to 26% (in 2013: 36%). One factor is age. Cooperating spaces still wind up in another market. About each third cooperating space initially opened inside the most recent twelve months; four years back, this figure was almost half. By and large, they earn back the original investment in the thirteenth month in the wake of opening — that is, they are not anymore collecting working misfortunes, however, they are not making any benefit either.
The free examination of the 2017 Global Coworking Survey
was performed with Social Workplaces and was bolstered by
Nexudus Spaces, Essensys and Communitas.
This low however rising normal age mostly clarifies the developing extent of collaborating spaces that are productive. Be that as it may, playing for time doesn't function admirably as a procedure for a fruitful cooperating space. A few spaces break down after just a brief timeframe and are never again included, and this additionally drives numbers up. Different components influence benefit in a substantially more enduring way. We have investigated the undeniable ones and the more subtle ones, and whether and how they are associated.
Participation figures are critical
The most persuasive factor is participation figures. The more customers — or, for this situation, individuals — that an organization has, the more benefits go up. It's truly not news that collaborating spaces likewise work thusly. Three of every four cooperating spaces with at least 200 individuals are past the equal the initial investment point. For cooperating spaces that are one year or more seasoned and work with respect to benefit ventures, the number is much higher. Only 3% report misfortunes. The same goes, to a lesser degree, for an estimate. The bigger the workspace a cooperating space can offer, the more individuals can join.
Be that as it may, on the off chance that they are not at a limit, gainfulness at that point sinks. Half of for-benefit collaborating spaces with less individuals than workstations still don't make a benefit following a year.
Collaborating spaces in enormous urban areas have it simpler …
Another, to some degree less basic factor is area. Cooperating spaces increment their overall revenues all the more regularly and all the more rapidly the bigger the encompassing region is. Residential community, provincial, and even rural areas plainly give administrators more noteworthy difficulties in building up a manageable collaborating space.
… when the field isn't excessively swarmed.
In the biggest urban communities, with a million or more occupants, benefit tracks with the quantity of contenders. Where few collaborating spaces exist, request and enrollment are lower. The more contenders that are dynamic, the more grounded cooperating spaces are when all is said in done. In urban communities where there are at least 50 contenders, however, productivity drops once more. There's no evident clarification. All in all, there's no absence of individuals, and administrators' participation figures and wage are overall over the level of collaborating spaces with less contenders. Lease as an extent of costs isn't soaring. Conceivably, costs in these areas — including rent — are considerably higher than in others. There isn't sufficient information to touch base at a clarification through more profound investigation. The way that it's, for the most part, unrewarding collaborating spaces that say there are 'excessively numerous cooperating spaces' in the territory is less shocking. Against this scenery, in the interim, we can't debate the idea that in a few urban areas there truly is an oversupply.
More private workplaces secure financial manageability, all the more meeting spaces can harm it
As of late, more cooperating spaces are putting forth private and group workplaces nearby work areas in open workspaces — and are seeing clear relating increments in pay and productivity. Just a single in four cooperating spaces without these offerings is turning a benefit. With private or group workplaces, that number ascents to half. However, when incomes from this administration overwhelm, it's not quite recently spaces' benefit that is on the decay. The cooperating idea itself is likewise tested. Especially if those workplaces stay detached with open workspaces.
Moreover, meeting spaces consider a decent supplementary salary stream. However, an excessive number of them can abandon a major gap in the financial plan. Other than beneath normal participation figures, unbeneficial collaborating spaces are portrayed most importantly by excessively numerous meeting spaces. In the event that these rooms involve more than one fourth of the floor space or income, collaborating spaces have a higher-than-normal likelihood of going bankrupt.
In this study, respondents had the chance to share their organizations' needs. With their higher offer of private workplaces (33%), "business focuses" and "shared workplaces" performed superior to "cooperating spaces" or "group spaces," which offer fewer workplaces, however, are plainly more youthful, too.
In the meantime, private workplaces raise the rate of committed workstations, which is likewise why cooperating spaces with a substantial rate of devoted work areas perform better by and large. All things considered, 40% of all cooperating spaces that have just adaptable workspace are gainful, which is not beneath normal. As a rule, a blend of the two methodologies, with an accentuation on committed work areas, appears to perform best.
Curated cooperating spaces aren't more beneficial than open spaces
By and large, collaborating spaces that are interested in all individuals accomplish a higher opportunity to end up plainly beneficial—especially in urban areas with a million or more inhabitants. Be that as it may, in spaces that have been open for no less than one year and are revenue driven organizations, there is little contrast in gainfulness between ones that take after an open-for-all strategy, ones that look for a curated blend of individuals or customers, and ones that serve a particular specialty — with one exemption.