The concept of the traditional workplace layout consisting of cubicles and cabins underwent significant changes during the last few years. The rise of the startup culture and the spurt in entrepreneurship compelled to change the traditional office setup from a sole ownership model to shared workspaces. Single ownership of office spaces by a company gave way to the concept of co-working, in which people of different companies work in a neutral space according to their convenient working hours or days. The amenities offered in a co-working space are the same as in a traditional office, but the economics of hiring or owning the spaces are completely different. Companies no longer need to sign a long-term lease to access shared working spaces. The flexibility is a great differentiator in addition to the open office layout.
Companies are promoting co-working
The concept of co-working became extremely popular due to the Covid 19 pandemic when most companies offered work-from-home options to their employees to comply with the need for physical distancing. Initially, it appeared that the work from home culture would prevail, and it could do away with the requirement of maintaining big establishments by the companies. However, over the two years, things started changing as the pandemic subsided, and companies and most employees chose a hybrid working model, partly working from the office and partly from home. The number of employees reporting to the office reduced drastically, and it did not make sense for companies to hold on to large office establishments. As a result, the shift toward sharing workspaces gained momentum, and today the co-working sector is emerging stronger as more and more companies switch over to the hybrid model.
While reducing the overhead costs was one of the companies’ objectives adopting the co-working culture, some other factors also contributed to its popularity.
Technology fuelled faster adoption
Technology played a vital role in boosting the demand for co-working spaces because these spaces provide technical support that companies across the industrial spectrum would need. From high-speed internet connectivity to access Cloud computing and AI-enabled work processes, the companies can benefit from quick access to technology at a minimal cost. It helps streamline the work processes and increase efficiency while encouraging a more collaborative work environment. The technological access fuelled innovation and creativity while saving time and cost. The ease and flexibility of working motivate the employees to be on the top of their game and give their best to boost its bottom line.
Expanded networking boost creativity
The need for physical networking always remained, although the pandemic forced people to work from home and maintain virtual networking with peers, colleagues, and collaborators. With the opportunity to work in shared spaces, the scope of physical interaction and effective networking encourage exchanging ideas among like-minded people. As networking cuts across the organizational boundaries, it provides a platform for exchanging professional ideas between employees, freelancers, and service providers. It promotes a creative culture independent of the organizations.
A space for maintaining mental wellness
The setup of any co-working space is unique because the focus is on providing the best working environment by ensuring mixing opportunities and a scope of relaxation between work schedules. The Covid 19 pandemic has highlighted the need to care for mental health and wellness properly. Excessive mental stress deteriorates general health and adversely affects working abilities. Companies using co-working spaces provide convenient amenities for the workforce to relax and rewind between works and avoid burnout due to excessive mental stress. Providing play areas, gyms, and food courts alongside the workspaces allows the workforce to take time out from work, rejuvenate and take care of their mental wellness. It will enable them to focus on the job more intently and enhance productivity.
Flexible rent
The popularity of co-working space has completely changed the renting and leasing methods as the rental or lease schemes are now more flexible. The terms of rent or lease are more relaxed as companies prefer complete flexibility in the office setup.
As the co-working culture keeps evolving fast, it will profoundly impact the real estate sector. It will prove to be even more influential in the future.
