What Can Change in a Year?

What Can Change in a Year?

updated May 20, 2018

The leading online magazine for coworking and shared offices, Deskmag, has published the results of the global coworking survey conducted at the end of 2017.

The survey’s findings were very promising, with an expected 33% growth in members, in 2018. The results anticipate huge changes in the sector, so we have highlighted the major findings that will positively impact the future of the coworking space.

Members’ Growth
In 2018, the survey forecasts that member numbers will reach almost 1.7million globally. What does that mean for coworking and shared office providers? It means, more spaces and shared offices are required. Since 2015, there has been a huge spike in member numbers, year-on-year.

2015 – 545,000
2016 – 890,000
2017 – 1,270,000
2018 – 1,690,000

As per the members who participated in the survey, their demands for 2018 are more and bigger coworking spaces. Because of this, a lot of the coworking and shared office providers are expanding. In 2018, 27% of providers are planning to expand their existing premises with more desks and space, 8% plan to move to a larger space, and 37% are planning to open in other locations. Commercial property developers and shared offices providers who are not willing to expand, will suffer in the future considering the increasing demand for coworking spaces.

Coworking Trends
Statista have reported that the number of coworking spaces has jumped from 3 spaces in 2005, to 15,500 in 2017, a 516% increase. In 2018, it is predicted we will see a 21% increase, with the number of coworking spaces growing to 18,900, worldwide.

The Deskmag survey indicates that members want more niche spaces that offer boutique office solutions, much like the existing Areaworks premises. Members no longer want just a desk and a chair, they are looking for more. They want more community events, coworking spaces with extra services such as: child day care and gym memberships, they want spaces that are different.

Competition is increasing, and members are looking for a provider that goes beyond providing just a space. A successful shared office provider must consider factors beyond just cosy furniture; they need to look at integrated technology and creating a sense of community for their members.

Coworking Spaces Income Streams
There is a common perception that coworking offices generate revenue solely from desk rentals, but according to the Deskmag survey, income comes from desk rentals along with additional income streams. From 2015-2016, 40% of income came from renting desks, however this decreased to 36% in 2016-2017, due to an increase in additional income streams. These include:

• 18% from combined memberships plans, up from 16%
• 18% from renting private offices, up from 17%
• 10% from renting event spaces, up from 9%

In considering all of the above, it is clear that members are looking for a one-stop-shop, a boutique coworking space. The key to staying ahead is to go beyond the traditional shared office space. That is why we at WSC, have evolved to ensure we provide exactly what members want, and that we are exactly who our competitors want to be!

If you would like to partner with our coworking arm, email info@wsc-intl.com