Should You Still Consider Coworking Space?

March 18, 2020 Don Catalano Don Catalano

As 2020 gets off to a start, the coworking industry is coming off of a disastrous year in the news. In addition to more industry press coverage of the ills of the open floor plan office than we've seen in years, the best-known coworking provider -- WeWork -- has gone through radical change along with an equally radical reduction in its value.  With these issues in mind, you might not think that it makes sense to look at coworking space any more.

 

You might be right. But you might not. For all of the hullabaloo, the underlying nature of coworking space hasn't really changed. In fact, even WeWork hasn't changed a great deal. If it worked for you before, it probably still will.

 

Why Coworking Space Works

Coworking space has three key benefits. It's flexible. It's lean. And it's got a unique feel of its own. 

 

When your company needs flexibility, providers like WeWork and Industrious make a great deal of sense since you can get office space, office equipment and amenities with little or no long-term commitment. While it might not be significantly cheaper in the long run when you do a true apples-to-apples comparison with traditional space, it's usually much cheaper in the short run.  Finally, coworking spaces have a unique look-and-feel that creates its own culture.

 

If you need a traditional long term office with hierarchically-designed spaces, a corporate feel, and the like, coworking probably won't work for you. However, if your needs fit the coworking model, nothing that happened in 2019 affects its suitability for you.

 

Coworking vs. Space-as-a-Service

If you want the coworking experience without the impermanence and with a little bit more customizability, space-as-a-service could be a great option. While WeWork was one of the pioneers of this concept, it isn't the only one. With a space-as-a-service model, you pay on a by-the-workstation basis and get the space you need for your workers. It can also include customized workspaces, private areas, and the like. This gives you a bit of the coworking experience with a bit of the traditional office experience, and the model has proven popular with even the largest companies.

 

But What About WeWork?

While, as of this writing in early 2020, it looks like WeWork will end up surviving, its issues have little real impact on the coworking space industry. Every day, millions of people go to work at thousands of companies in coworking spaces. Even without WeWork (or any other company), there would still be physical spaces that serve tenants that need places to work and that let landlords collect rents. Third-party management companies could step in and take care of the space. Tenants could form relationships with their landlords. Or another coworking provider could swoop in and take over the space.

 

In any case, coworking is unlikely to go anywhere. Companies want to put their workers in shared space. Freelancers choose to purchase memberships in these communities. And building owners love having a new way to fill vacant space.  This means that the question you have to answer for yourself isn't whether or not there will be on a WeWork on the corner in a year. Instead, it's if that WeWork on the corner is a good fit for your needs, your culture, and your strategy moving forward.

 

Here are a few other articles we know you'll enjoy:

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