The coworking industry has experienced phenomenal growth in recent years, with the number of coworking spaces worldwide soaring from under 1,000 in 2005 to over 14,000 in 2017. But what does the future hold for this rapidly-expanding sector? Is it sustainable, or is it set to fizzle out? The peak of the covid-19 pandemic work-from-home craze has passed, and businesses are increasingly focusing on hybrid work. Here, we take a look at some of the key factors that will impact coworking’s profitability in 2022 and beyond. (Please note: this blog post is focused on businesses that offer or going to offer coworking memberships, not individuals who use coworking spaces.)
How Do Coworking Spaces Remain Viable?
Coworking is a rather new business model that has had a number of difficulties recently. Nonetheless, it is striving. Individual tenants and large corporations continue to return to the concept of shared workplaces. Some people choose to rent a private office in a coworking space, but it’s the same thing.
People prefer not to come far from home for work, thus more organizations are opting to rent a coworking space in the suburbs for their employees. This concept is known as the “15 Minute City.” When everything you require for daily living is within 15 minutes of your home. Employees can continue to work remotely even if they are not working from home in this fashion. Such a hybrid method of working provides for better concentration than working at home with all of its distractions. People are still not required to travel far.
Despite the fact that many professionals have become accustomed to working from home, two-thirds of Americans still appreciate the ability to network in person. Flexible workplaces also allow for sufficient human interaction to effectively advance one’s profession. Furthermore, being around other people while working is beneficial to your mental health.
According to another survey, 76 percent of employees feel that working from home has led to burnout due to a lack of personal interaction. As a result, flexible workspaces are a good compromise for remote employees, and coworking services are in high demand. Big businesses aren’t immune to the advantages of flexible workspaces. Corporations want to disperse and decentralize their workplaces, resulting in significant investment in coworking spaces.
Predictions for the Year 2022
According to the Global Coworking Growth Study, demand for coworking spaces is so high that their number is predicted to increase twice as much by 2024. And a significant portion of it is taking place in the suburbs, with more than half of employees stating that having an office close to their home is essential for their job. In the year 2022, more than 3 million people will work in a coworking space. That’s nearly a million more people than the year before.
The coworking industry market could reach ten billion dollars by the end of the year. It’s now worth $2 billion more than it was before the pandemic. So, let’s talk about how much money you can make through coworking in 2022.
How to Increase Your Income as a Coworking Company
Businesses that offer flexible workplaces typically turn a profit after two years. As a result, entrepreneurs that are just starting out should be patient. A coworking space’s average income is 10% of what the renters pay you. Furthermore, just half of the coworking businesses are profitable. As a result, you should think about investing in extra techniques to boost their payoff. In this industry, there are various ways to increase your earnings:
- Invite businesses – as previously said, freelancers aren’t the only ones who use coworking spaces. Big businesses are also interested in investing and renting office space in this industry. As a result, focus your advertising campaigns on larger audiences.
- Offer additional services – in addition to office space, you might rent out equipment and other essentials. Conference rooms that feature a lot of built-in equipment that your clients might use during their meetings perform particularly well. Private offices are also in high demand these days.
- Find the best location – coworking in big cities is more competitive. But keep in mind that many individuals and businesses are looking to rent flexible workspace in the city’s suburbs.
- Invest in coworking software – information desks with managers who must be paid are inefficient. If you invest in booking software for your company, you can boost your pure coworking payoff significantly. Payment cards and applications that allow renters to reserve rooms without going via an intermediary are extremely handy for both parties.
Coworking is a rapidly expanding sector. And, despite the pandemic, the industry is just going to get bigger. This provides individuals who are currently in the industry and those who are just getting started with a bright future and a good chance of success.
Andrew Horbachov is an SEO specialist at andcards, specializing in link building and studying germanic languages translation, interested in coworking software and its impact on user experience at the flexible workspace.