The rise of the digital age has led to a demand for more collaborative work environments. Coworking spaces have proven to be the answer, as they provide a productive and cost-effective solution for freelancers, remote workers, startups, and small businesses. Having grown from a niche trend to a popular option in the last few years, coworking spaces continue to grow in popularity.
In fact, this industry is set to boom even further over the next few years. It is estimated that the global co-working space market will reach $3.4 billion by 2023, growing at a CAGR of 17.7% between 2020 and 2023. If you’re looking for an opportunity in this booming space, here are five reasons why we think the industry is booming right now.
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Why the Coworking Space Industry Is Booming
1. People Want Flexibility in Where They Work
We live in a world where people are increasingly mobile, and coworking spaces have recognized this fact. A coworking space won’t be a coworking space if it doesn’t offer flexible office space. They offer members the chance to work from various locations, including their own homes, cafes, libraries, and other locations.
This means that people don’t have to be stuck in one location for the entirety of their working life. Whether you travel for work, live in a remote region, or simply have a preference for changing your location from time to time, coworking spaces allow you to fit your work around your life, not the other way around.
2. Coworking Spaces Are Inexpensive
Another factor that contributes to the growth of the coworking space industry, particularly referring to those who are managing a coworking space franchise, is the fact that they’re comparatively cheap. While many freelance workers might prefer to work from home, coworking spaces are a much cheaper option. In fact, some coworking spaces charge members as little as $10 per month.
Coworking spaces also offer freelancers and entrepreneurs a place to network with other business owners and professionals. Many of these spaces host events, workshops, and conferences where members can meet other freelancers, expand their network, and learn new skills. This sense of community and collaboration also makes coworking spaces a great place for people to find new clients.
3. Millennials Prefer Co-Working Spaces Over Office Jobs
Millennials are now the largest generation in the workforce, and many of them are choosing to go freelance. This can be for a number of reasons, including the flexibility of remote work and a desire to break away from the 9-to-5 office routine. Even though there are many benefits to working from home, coworking spaces are increasingly popular with this generation. This could be because millennials appreciate the collaborative and communal feel of coworking spaces.
Alternatively, it could be due to a fear of missing out. Many millennials feel that they’ve missed out on the opportunity to work closely with colleagues and build relationships in the office environment. As a result, they may choose coworking spaces over working from home so that they can have the chance to build these relationships and get involved with a community.
4. The Rise of Remote Working and Virtual Companies
While many millennials choose remote working because they want to break free from the office environment, a growing number of companies are also choosing to become remote. This can be for a number of reasons, including cost savings and a desire to hire a more diverse workforce. Many of these remote companies are choosing to become virtual.
This means that rather than having a physical office where employees or contractors can go to collaborate and exchange ideas, they use online communication tools like video conferencing, screen sharing, and other digital methods. Although many of these companies still have a physical base, they may also choose to work out of a coworking space to get the social aspect of office life and interact with other professionals.
5. Coworking Spaces May Lead to Bigger Changes
As the popularity of coworking spaces grows, we could see some significant changes in the way companies conduct business. Some companies have already started to adopt some of the coworking practices; for example, companies like WeWork, which manages many coworking spaces around the world, have introduced a flexible working culture that is open to remote working.
While coworking has yet to become mainstream, as the industry continues to grow, we may see more companies adopt flexible working practices and work in a coworking environment. This could mean that employees are more likely to work from home but regularly visit a coworking space to collaborate with colleagues. Perhaps more significantly, companies that don’t offer flexible working and allow employees to work remotely may miss out on the most talented workers.
Final Thoughts
As the freelance economy continues to grow, we can expect to see an increase in the popularity of coworking spaces. They provide an affordable and flexible working environment that is accessible to a wide range of workers. In fact, these spaces are ideal for millennials who want the freedom of remote work but still crave the social interaction that comes from working in an office environment.
If you’re looking for a new business opportunity or a way to supplement your income, you may want to consider opening a coworking space. With so many people opting for a freelance lifestyle and working remotely, you’re likely to find plenty of customers. If you’re interested in starting a coworking space, you can read our article on how to start a coworking space and start planning your new business today.