30 Mar 7 Benefits of Renting Shared Office Space
7 Benefits of Renting Shared Office Space
Over the years as a commercial real estate agent, and especially since the beginning of the Covid pandemic, the workplace has evolved dramatically. It’s evolved from private offices to cubicles, to open floor plans, to work remotely and with the end of the world crisis insight, we expect to see large growth in the shared office business model. In recent years shared office has been all the talk of the town! There has even been a huge buzz in the stock market about shared office and the key players WeWork and Regus have been getting lots of press! In 2017, there were 4,043 coworking spaces in the United States alone. This is up considerably from 14 known coworking spaces in 2007. This isn’t only a trend in the US, worldwide the number of shared workspaces in 2018 was approximately 16,599 and is expected to climb steadily to about 41,975 by 2024.
A shared office is just one of the many “shared experience” changes that have happened in the last several years that include Airbnb, Uber, and even “ghost kitchens”, where restaurants share kitchens. The evolution of technology has created an office atmosphere that requires less direct oversite, allowed file storage in the cloud, and most computers to become portable. This allows businesses to push for a less expensive alternative to traditional office space. The largest push for coworking space came in early 2020 with the world Covid pandemic.
Here are a few reasons each business should consider renting a shared office space:
- Greater Productivity
In a post-pandemic world, many businesses that have been forced to a work remotely business model has found new struggles. One of the struggles is efficiency. Working remotely usually means working from home and at home, there are way too many distractions that are competing for the employee’s time. They have the kids, the dog, or the commercial in the background that sends them down a rabbit hole for hours! This can result in employees taking much longer to complete tasks. This could be solved by utilizing a shared office space to give employees a place to go without any distractions and would allow them to interface with others.
- Flexible Routines and Schedules
In the new world that has kids chasing ever-changing school schedules, flexibility has become more important than ever! A coworking office space would accommodate any schedule since some of the offices offer 24/7 access. A parent could drop their kids off at school, stop at the office a bit and then pick the kids up!
- Clearer Team Communication
One of the biggest issues, if not the biggest issue, is lack of communication in work remote business models. In a traditional office, there is constant opportunities for communication! Not just in meetings but, even passing in the hallway or meeting at the water cooler. The lack of communication can start to show itself in ugly ways like a lack of direction, morale, workplace depression, employee infighting, and a high turnover rate which leads to high retraining or employee retention costs. A shared office could allow a manager to work from the space in a way that provides the opportunity to interface with employees. This would keep them focused, in-line with core values, feel part of a team and help identify issues while they are still fixable.
- Office Equipment
Office equipment can be costly to buy, lease, and maintain. Spreading out these costs among the other members of the space could be dramatic. You could be using better equipment that allows you to look more professional and the costs may be buried in the space fee…depending on the lease/membership agreement. In my office, we include everything for one flat fee with the understanding that member that continuously over utilize equipment could result in a higher rate.
- More Networking and Business Opportunities
One of the biggest benefits of shared office space is the interaction between the other members. Insurance agents, realtors, attorneys, etc., all interfacing on a regular basis provides tremendous opportunities for sales leads! Sometimes, happy hours or similar events are planned to promote member interaction. Landlords know that a successful member is a happy member!
- Growth and Market Flexibility
In the past, if your business was in growth mode, you would, in a perfect world, do a market study to determine where you wanted to target next. Then you would find office space and sign a long-term office lease. This could be very costly, especially if the market turned out to be less profitable than expected! With coworking space, you can enter a market for a fraction of the costs, often with less of a time commitment. In essence, this provides you with the ability to scale your business quickly and “test-drive” a market before making a bigger, more costly commitment. Some businesses benefit from seasonal flexibility as well.
- Saving Money
Owning or leasing an office can be very costly and a huge burden for a single owner or tenant. A shared office provides the opportunity to spread this price house over several members and dramatically reduce costs. It is also a very good way for a Landlord to increase revenue per square foot for a given office space!
Shared office is here to stay and will become a bigger part of mainstream business as the years go by and technology continues to develop. The spread-out costs and lack of commitments allow businesses to be more profitable and nimbler so they can pivot quickly. If you would like to consider a shared office environment, please feel free to touch base with me to discuss!
Check out this shared office in Jamestown, NY and call Michael McVinney with questions.