The volume of co-working space or sometimes also called as shared office space and flexible office market continue to rise across the whole world for the last couple of years. Data shows that co-working space has grown for more than 200% in the last five years. It was getting easier to find this kind of working space no matter where you are.
What brings this rapid growth of co-working space? Many factors play its part. For example, many businesses in this day need to be working in an environment where they have access to technology innovator and start-ups, and those are the elements that can easily be found within the co-working ecosystem.
The advance of technology is another reason for this rapid growth. In this day, there are more and more mobile and tech-enabled employees who want greater flexibility to work remotely. Advanced technology allows for such thing because it gives room for more online collaboration than ever before. It allows people to work on different kind of projects from different time zones.
More to Read : how to work with agile workforce
Let’s take a look from the tenant perspective. As the name stated, this flexible working space offers flexibility that allows the tenant to move from one place to another anytime they want. Large companies could use this type of working space as a solution for a different need, for example when the companies need a place for a special short-term project, a swing space during a transition time, and so on.
The availability of co-working space allows employees that are mobile on daily basis and do not need a permanent desk can work in a different location and even different cities. Those are the things that bring this ever-growing popularity of co-working space.
What are the implications of this flexible working space for the office market? For the tenant, it is obvious that they have more options when it comes to flexible working place. Anyone can use co-working space from large companies who were working on a short-term project on different cities and also for start-up or freelancer that didn’t have enough resource to have their own office.
The expansion of co-working space plays a significant role as companies aim to connect closer to the innovative community as part of their working strategies.
At the same time, many companies have less need for office expansion and smaller companies will be able to survive using this type of working space.
But there are challenges waiting in the future. As more and more landlord enters this market, the co-working space operator faces strong competition. At some point, there could be something called as over-saturation where the market has too many co-working space options.
In some countries, the challenge comes from the latest accounting standard set up by FASB. This new standard requires companies to report the existing lease, in this case, the temporary working office, as both an asset and liability, starting from the beginning of 2019. For what challenges it has, there is no denying the rapid growth of co-working space has disrupted and changed the office market into something new and different.
More to Read : 4 Workplace Trends the HR Need to Adapt