Coworking is a style of work which involves a shared working environment. Deskmag, an online coworking magazine, surveyed 1,500 people in 52 countries and discovered a wealth of information about the benefits of coworking.
The study confirmed that community is the most important value among members at coworking spaces. Of those surveyed, 96% were happy with the sense of community at their spaces.
Ninety-three percent of those surveyed said their social circle had increased as a result of joining a coworking space. Additionally, 86% said their business network had grown, 76% reported an increase in productivity, and 88% said their isolation had decreased.
While coworking is obviously loved by its members, the survey revealed a more troubled future for space owners. Only 40% of coworking spaces will be reporting a profit this year. The challenge is finding a profitable model for spaces without sacrificing the quality of the space and the sense of community that members value so highly.
Deskmag plans to release more detailed reports based on its findings over the next couple of weeks — including more information on coworking’s business model and future outlook. We will keep you updated once more results are made available.
As a startup or solopreneur, how have coworking spaces affected your productivity?
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I agree covering costs without sacrificing quality of the environment is the toughest bit to balance in operating a coworking space. There's always the outside public funding route but then you will then involve people who don't necessarily understand the spirit and culture required.Â
With a focus on startups @CoHabitat:twitter , we find people outgrow options quickly due to the nature of the physical space (4000+ sf in a 100-year old house).  While this is great for member companies starting out here (or passing through), it's negatively impacts the continuity of revenue and daily community. Time to schedule our Friday community lunch...gumbo sounds tasty!
Thanks for commenting Blake. I think the culture within the space is the most appealing aspect of a coworking space (aside from getting out of your living room or neighborhood Starbucks). As a freelancer, I wish there were an affordable space nearby that I could take advantage of. But I certainly understand the challenge created by so many individuals or businesses passing through.Â
I think CoLoft in LA manages that well. There's definitely a tight community there and even after a company leaves the walls, I can still see the support being shared through Twitter and other platforms.
Blake,
Out of curiosity, how long do startups stay with you? I can imagine a small team staying a long time even if they are successful due to the comraderie.
Do yuo have some long termers or is change a constant there?
Coworking is still very much a business model in flux and that's going to be reflected in the number of spaces that open and then shutter their doors later on because they couldn't make the numbers work. Numbers can be the primary sticking point. You can't just throw a bunch of desks together and hope people will come because it's cool to work there. You're competing with their home office, their local cafe, etc. You have overhead costs to pay, staff, etc.
The other big reason spaces close is that they didn't quite get the community right. Community is what separates a coworking space from a shared office to begin with. (An aside: There's a funny PR from Regus going around that claims they invented coworking 20 years ago with their executive office suites-- ridiculous!)
From talking to over 50+ coworking members and space founders/owners across the country for a book project we did earlier this year ('Working in the UnOffice: A Guide to Coworking', http://amzn.to/sgr798), the most telling indicator of longevity we found was how strong the community is at the space.
Sure, many spaces cater to startups and freelancers, that may eventually move on. But you also have spaces like Affinity Lab in DC that have been going strong since 2001 that house more mature businesses, and then you have spaces like NextSpace (hey, there's one in LA!) that are succeeding at 'franchising' themselves, opening multiple locations in California. Astoundingly, there's Gangplank in Arizona that doesn't charge a dime to its 'members'! They work out deals with local government and providers to get building space, electricity/ internet for free; then its anchor companies share the workload of running the day-to-day operations. It's the quintessential community space.
So, the common denominator is definitely the strength of the community. Community and the environment it creates are the core fundamentals to making coworking work! It's an intangible that many spaces can't cultivate no matter how much money they throw into a space. It's also a reason why businesses that do leave still maintain virtual memberships (paying to stay part of the network and to attend events, etc.)
The survey finding is worrisome and it will be interesting to see how coworking evolves in the next few years. Food for thought for all of us watching this movement.
Thank you for your comment Genevieve! "Community is what separates a coworking space from a shared office to begin with." I couldn't agree more and I'm thrilled to learn that there are so many coworking spaces (including here in LA) that have gotten it right. It's definitely an area I'll be keeping my eye on over the next couple of years.