Why Coworking is Poised to Explode in the Coming Months
COVID-19 has stopped the coworking industry in its tracks. Most were forced to close their doors for a couple of months (and some have still yet to reopen). However, the long-term prognosis for this industry is bright. Good things are coming, and experts believe we’re about to see a major boom.
4 Reasons Coworking Will Become the New Normal
There are currently an estimated 20,555 coworking spaces worldwide. By 2022, it’s projected that there will be somewhere around 25,968. (And for perspective, there were just 7,805 global coworking spaces in 2015).
While it’s possible that these numbers could be suppressed by the fallout of COVID-19, this is highly unlikely. The short-term prognosis might be dampened in the immediate aftermath, but as the economy recovers and things start to stabilize, all indicators suggest massive growth will follow. Here are a few reasons why:
- Remote Working Set to Increase
If you think the current work from home trend is just a blip on the radar, you’re gravely misinformed. Yes, some workers will return to corporate offices and company workplaces after this pandemic is over. However, millions will never return to a cubicle or office again. We’re about to see a massive shift in the workplace and it’s going to lead to a huge influx of remote workers. Some will work from home, while others will need/want an alternative.
Organizations will make this shift for a couple of reasons. First off, they don’t want virus outbreaks within their own four walls. (From both a health and legal perspective, this is far too risky.) Reducing the number of people in the office lowers the chances of the virus being transmitted from employee to employee.
Secondly, employers want to “de-densify” their offices to limit the impact of future outbreaks and pandemics. If companies are already operating remotely, they won’t be nearly as sensitive to future disruptions. I’ve also been looking into virtual offices as I have a business in Liverpool where I don’t want to use the personal postal address on the web site. So, I signed up with the number one virtual office service in Liverpool and they have just been brilliant.
- People Need Community
“Being socially connected is our brain’s lifelong passion,” UCLA professor Matthew LIeberman says. “It’s been baked into our operating system for tens of millions of years.”
Lots of people enjoy working from home. However, there’s a certain segment of the remote working population that needs to be around other people (physically) in order to feel alive and engaged.
Coworking spaces offer a sense of community and purpose. The members might be involved with different businesses and industries, but they all tend to share similar professional ideologies. This is encouraging, particularly for millennials.
Novel Coworking SoCal is a good example of a coworking space that operates on a mission. They’re all about supporting local businesses and social causes that are important to San Diego. As a result, it draws local entrepreneurs in and gives them a place to feel connected to the city. There are similar setups in other cities throughout the country.
- Many Remote Workers Can’t Work From Home
From a very practical standpoint, there are certain people who can’t work from home. This includes situations where:
- There are young children in the home (making it impossible to stay focused and on task).
- There’s an abuser in the house, which makes it unsafe to be at home for long periods of time.
- There’s no room for an office (as is the case in shared apartments and/or tiny lofts).
- There isn’t access to high-speed wireless internet.
For these individuals, working from home isn’t an option. They need somewhere to work that’s separate from their housing. Coworking office fills this void by offering a safe, professional workspace that’s equipped with the technological infrastructure needed to thrive.
- Small Businesses Can Save Money
It’s not just individuals who are making the switch to coworking spaces. You can also expect more small businesses – especially those with five or fewer employees – to transition their entire offices into shared workspaces.
When you compare monthly memberships at coworking spaces to long-term leases on corporate office space, small businesses can save as much as 25 to 75 percent in overhead costs. That’s a huge figure – one that directly impacts the bottom line.
Two Cheers for Coworking
Is coworking the right solution for everyone? Certainly not. However, if you study the trends and look at what businesses and individuals are prioritizing, it’s clear that shared workspaces are the future. The sooner we embrace this reality, the faster businesses will grow.