Co-Working Spaces: The New Trend in Real Estate (PART 1)
There is a relatively new form of a business model emerging in the real estate space across the world. The model is addressed by several names viz. co-working spaces, on-demand workplaces, shared offices, etc. It is also very effective for companies who do not want to tie themselves down with long-term lease obligations and instead have a flexible cost structure. In this article, we will have a closer look at this trend of shared offices.
Common Reasons Companies Opt For Co-Working Spaces
Cost:
This method is particularly useful for startup companies. Most of the startup companies today are in the hi-tech space. This means that they require offices with facilities such as video conferencing, VOIP enabled phones, leased internet lines, etc. However, setting up all these facilities from scratch is a bit expensive for startup companies who are usually strapped for cash. Hence, it is economically as well as operationally feasible to use this plug and pay model for office space. For a startup company, this works out to be more expensive on a per month basis. At the same time, bigger corporations find this model to be cheaper by around 25%
Infrastructure:
Co-working spaces allow the cost of the operation to be reduced without affecting the infrastructure quality. Usually, such shared workspaces have conference rooms and even video conferencing facilities. Companies get readymade infrastructure from day one. They can focus more on the core tasks performed by the company instead of paying attention to administrative tasks which add to the time and cost but do not produce any value for the customer.
These shared workspaces offer a plug-and-play model that allows companies to have access to essential facilities like video conferencing, VOIP enabled phones, and leased internet lines without the hefty price tag of setting them up from scratch. This cost-effective solution is ideal for cash-strapped startup companies looking to establish a professional office space without breaking the bank. On the other hand, larger corporations also benefit from this model, finding it to be around 25% cheaper compared to traditional office setups.
Moreover, co-working spaces provide companies with ready-made infrastructure, including conference rooms and video conferencing facilities, right from day one. This not only reduces operational costs but also allows businesses to focus on their core tasks rather than getting bogged down by administrative duties that don't directly add value to their customers. By offering a flexible and collaborative environment, co-working spaces are revolutionizing the way businesses operate, fostering innovation, creativity, and networking opportunities that can propel growth and success. In essence, these shared workspaces are reshaping the real estate landscape by providing a cost-effective and efficient solution for companies of all sizes. In the concluding part of this article, we discussed the problems and challenges associated with co-working spaces
