With the holidays upon us and 2020 just around the corner, it’s the time of year for industry predictions. As 2019 and a decade comes to a close, we at Workspace Strategies wanted to share with you what we believe is in store for the coworking industry in 2020 and beyond.
The last decade has seen the exponential growth and boom of the coworking industry. What was once considered merely a trend has become a mainstream movement that’s influencing the way workplaces are designed and positively contributing to the way people work. And this is only the beginning.
The coworking industry is expected to continue to flourish in the coming years. In fact, by 2030, JLL estimates that 30% of corporate real estate portfolios will be comprised of flexible workspaces, including coworking. As we begin the decade that will lead us to 2030, here are 3 key things we can expect from coworking.
- The diversification of operating models
Though coworking’s traditional business model comprised of operators leasing out space in the long-term and subletting in the short-term, we are quickly seeing the rise of new operating models. Some of these include management partnerships with landlords, joint-ventures with property developers, and building ownership from operators.
These new operating models not only reduce the risk for coworking space operators, but they can also make it easier for them to expand their footprint in existing and new markets.
- Fewer locations, but larger ones
Over the past few years, we’ve seen operators expanding by opening new locations in different markets. In the future, coworking expansion will happen in a different form. Rather than focusing on opening new locations, coworking operators will grow existing locations by adding additional footprint as their members grow and space requirements increase.
Another reason coworking spaces will seek to grow existing locations is to cater to the growing corporate market within coworking. Space requirements have started to increase this year, and as more corporates embrace coworking, the number of desks asked for by members is likely to continue to move upwards.
- Greater focus on technology for space optimization
Coworking space operators will need to revamp their technology infrastructure if they hope to attract and retain members in 2020 beyond. Coworking spaces need to ensure that their technology can support the needs of the modern workforce, including but not limited to secure and reliable connectivity, access to communication and meeting platforms, connected devices, and IoT.
Furthermore, big data and the Internet of Things can provide coworking space operators with valuable insights to optimize their space based on how existing members use and interact with it.
As you work on your coworking business 2020 strategy, keep in mind that Workspace Strategies can help you with development, management, and growth of your brand.