6 minute read
Workplace of the future
Co-working spaces have evolved into sophisticated working environments that offer flexibility and benefits – and demand is soaring.
An increase in flexible working and operating arrangements is driving demand for co-working spaces, professional hubs where workers from different companies share an office space. These casual environment offices are no longer just the domain of free-spirited freelancers and start-ups, with corporate companies recognising the social and commercial benefits.
As more Aussies turn to co-working spaces as an alternative to working from home, the sector is tipped for major growth in the next five years.
Rising demand for co-working
According to the Global Coworking Growth Study 2020, an estimated five million people will be based in 40,000 co-working spaces worldwide by the end of 2024.
There are co-working spaces in every major city around the world. Not surprisingly, the majority of Australia’s co-working spaces are in Sydney and Melbourne.
“The demand for co-working spaces in Melbourne has consistently grown, primarily driven by businesses recognising the benefits, cost savings and operational efficiencies they offer,” said Robbie Materia, product marketing manager at Waterman Workspaces, which has seven locations across the city including the newest in Camberwell Junction.
“However, the recent surge in demand for co-working spaces can be attributed to businesses transitioning away from traditional commercial leases in favour of the flexibility and convenience provided by a network of co-working spaces.”
Coworking Mag reports that by the year 2030 about 12 per cent of all the commercial spaces in Australia will turn into co-working zones.
Last year, Mordor Intelligence valued Australia’s co-working office spaces market at USD$1.3 billion and projected the domestic co-working market to have a compound annual growth rate of more than 6.5 per cent in the next five years.
While co-working is not a new concept, the sector has experienced accelerated growth thanks to the pandemic.
“The economy and interest rates, together with the changes to office or work-from-home habits since COVID have led to an increase in the need for smaller office spaces, as well as flexible working spaces,” said Nick Maxwell, CEO of Camberwell’s members-only workspace Eclat.
Mr Maxwell said there has been a shift in who uses these spaces, which started out as hubs for freelancers, start-ups and digital nomads.
“Companies are needing to adapt to their employee needs which means an increase in supporting their flexibility in working from home, as well as areas closer to where they live to save time on travel,” he said.
“Corporates are also looking for more ‘off-site’ locations to impress their clients and to inspire their team.”
Connection To Community
Working from home and conducting meetings virtually was a vital option for many during the pandemic lockdowns.
But the home office comes with its own set of challenges, arguably the biggest of which being social isolation and domestic distractions.
Co-working spaces offer an antidote – a flexible and well-appointed space which gives workers a reason to ditch the pyjamas for a productive day of work.
“Using a co-working space can help establish a clear boundary between work and personal life, which can be challenging to maintain when working purely from home,” Mr Materia said.
“This can improve overall work-life balance and prevent burnout.”
Rubbing shoulders with a diverse group of professionals can also lead to collaboration through networking or simply being inspired by another person’s innovative work.
“Our member survey showed that 67 per cent of members have generated new business opportunities because of being at Waterman,” Mr Materia said.
On a personal level, feeling part of a community can boost wellbeing and productivity.
“At Eclat, a membership includes free access to our on-site gym, free weekly events and networking opportunities to support not only their business growth but also their personal growth, and staff who are here to support their needs,” Mr Maxwell said.
“Our members don’t feel that they have rented a room, they feel they belong to something. For example, every Thursday evening we have a members’ event with food, drinks and a great guest speaker.”
A Modern Way To Work
As competition ramps up in the co-working space, operators need to offer more than just a hot desk and Wi-Fi.
Co-working spaces have evolved into sophisticated working environments to meet the needs of both corporate and independent clients.
For a CEO who travels a lot for work, it might be the need for a private meeting room wherever their business takes them.
“We have hospitality infused bureaus (offices) and meeting rooms with all technology needs met and exceeded,” Mr Maxwell said.
For an employee, it might be the need to work close to home on the days they are not commuting to the office.
“There is also the environmental impact to consider. As we near the end of this summer, it will be apparent that the cost of utilities and running an air conditioner all day, when working from home, could exceed the cost of a standard co-working membership,” Mr Materia said.
For a company, it might be the flexibility of renting as much or as little space as is required at the time.
“These spaces can accommodate project teams, remote workers, or serve as temporary offices during expansions or renovations,” Mr Materia said.
“This flexibility eliminates the need to commit to long-term leases, relieving businesses from costly office fit-outs and substantial bank guarantees. Consequently, it frees up cash flow for essential business investments.”
Co-working facilities also provide the necessities such as a fast internet connection, charging stations, cleaning and security services, admin support, and refreshments like tea and coffee.
“More established co-working spaces offer professional services like administrative support, reception services, mail handling, a business address and even access to personalised support,” Mr Materia said.
“This can enhance your company’s credibility and increase client confidence, especially if you are a small business or start-up.”
According To The Global Coworking Growth Study 2020, an estimated five million people will be based in 40,000 co-working spaces worldwide by the end of 2024.
ECLAT
141 Camberwell Rd, Camberwell
eclat.com
WATERMAN WORKSPACES
Camberwell Place, 793 Burke Rd, Camberwell waterman.com.au/locations/camberwell
