It’s no longer just freelancers and small businesses that use shared rental work spaces anymore – they are actually quite popular; but why?
With steady growth leading experts to estimate that approximately 3.8 million people will be making use of shared work spaces in the world by 2020, from just 1.18 million in 2017, it’s become clear that coworking is supplying a demand that was previously left untapped, and unrecognized.
As it becomes more and more prohibitively expensive to lease and manage office spaces in the world’s largest and most competitive cities, entrepreneurs and businesses alike are forced to find alternative work spaces. Coworking spaces have also grown to meet a new demand for flexibility in an age of eternal uncertainty – as businesses and individuals seek to take greater risks and chase after bigger ideas for the sake of innovation, it becomes more and more important to cut down on costs and minimize commitment.
Shared spaces save on space and allow a larger number of individuals and groups to account for the costs, giving startups and other professionals the opportunity to set up and work in some of the world’s most competitive and exciting cities at a much lower cost, without the pitfalls of working from home or virtually. But what constitutes a rental workspace, and how is it superior to working out of a coffee shop, or leasing a cheaper office further away from the city center?
What are Shared Rental Work Spaces?
At its simplest, a rental work space is an office that consists of multiple professionals and companies, rather than just one company. As such, they function on a fundamentally different model from traditional office spaces, particularly in terms of pricing and freedom.
While a landlord may lease an empty office space to a business for several years, with the permission to redesign the office as they see fit, these work spaces are furnished and designed by the owners, with spaces leased to individuals and companies on a monthly basis. Like a monthly membership or subscription, companies are free to simply leave and opt out of their monthly renewal or continue.
Work spaces come with a variety of amenities rolled into the monthly price, including wired or wireless high-speed Internet, break rooms, comfortable seating, secluded meeting or conference rooms, a kitchen, and more. Some spaces encourage companies to bring their own equipment, while supplying equipment that is usually communal, such as:
- Conference equipment
As such, the workspaces feature a much lower overhead, as well as an attractive monthly fee versus a several-year-long commitment to a hefty and expensive lease. For smaller companies and freelancers, this makes for a much better alternative to seeking out a private office in a large city.
Because shared workspaces are inviting to a variety of different professionals, they have also opened the door to a completely new way of working together, encouraging cooperation and networking within the office. But for whom?
Who Uses Them?
Rental work spaces are ideal for partnerships, businesses, and individuals that lack the capital to afford a private office and could benefit from networking and potentially cooperating with other professionals in a variety of different fields. Coworking spaces are very popular among sole proprietors and smaller teams, but function equally well for:
- Smaller companies
- New start-ups
- Temporary partnerships
Aside from smaller firms and partnerships, coworking spaces are ideal for temporary teams, for professionals who need a shared space to work for just a few months on a project, before disbanding. While common among film crews, this type of setup is now growing in popularity in other industries as well, especially with the growth of virtual workspaces and rental spaces.
Larger corporations can also make use of coworking spaces by utilizing them for satellite offices in regions far away from their usual private offices, saving on the costs of preparing an office for every physical location. While established businesses profit from having a branded space to receive clients, this is not always necessary.
When to Transition from Shared Work Spaces to a Private Office?
It’s still critical not to forget that the private office isn’t going out of style – it’s simply coexisting with a brand-new model for work rooms. Companies that can afford to invest in their own private office space are not going to wholesale give up on that luxury for a coworking space potentially shared with competitors.
However, it is very likely that they are already profiting from the benefits of a coworking space through the work they outsource to freelance professionals and other smaller companies, as well as entire departments and satellite offices set up in different states and cities.
If you’re thinking of choosing between a private office and a coworking space, it helps to keep in mind the pros and cons. Shared work spaces, as previously mentioned, provide the space for collaboration, improve productivity in many cases, help keep workers happier, and boast much lower costs than traditional offices. However, there are cases where the cons of coworking overshadow its benefits.
If you have an established business with serious capital, then the need for networking and collaborating on projects with other companies or professionals may not be that high. Meanwhile, you may also want to control your own work environment, improving productivity in your own way by catering to your workers, rather than being at the mercy of how busy a coworking space may be at any given day.
Choosing The Space That is Best for You
Your clients may also be expecting a certain level of business, meaning that having your own office and signage could be important to sending the message that you’re an established and growing business looking for larger long-term profitable relationships.
- Through your own office, you maintain complete control over:
- Break room choices
- Design, and much more
You can match your business’ tone with your choices in design and layout, rather than having to mesh with other companies as well. A private office is also a safer office, especially if you’re working with client information that is best kept confidential.
Private office space is not ideal for every business, especially in this day and age. But there may come a time when you outgrow a cowork space. Ideally, you can put the benefits of both to use, working with professionals out of nearby coworking spaces while providing a private space for your own crew.
Luckily, The Collection offers both. Whether you are looking for shared workspace, or your own traditional office, call us today!