At the beginning of the year predictions and trend alerts for the coming months are everywhere and the co-working industry is no different. After reviewing industry blogs, articles, podcasts and webinars here are my takeaways for the year ahead.
Challenge – Return to Office Mandates. Large corporations including Amazon, Santander and Boots are requesting their workforce return to the office. This may mean for some suburban co-working spaces members will be heading back to HQ. However, this could also be seen as an opportunity. Organisations could take on flexible workspace as a “third place” away from home or the office. If companies are looking to outsource their workspace however, providers need an offer which is just as good or better than what they could provide their staff themselves.
Trend – Building experience as a whole. Workspace providers partnering with landlords more closely to provide a building wide experience, from when clients enter the building to time of sign-up. Rather than just presenting a floor in an office block, working together to enhance the space to be aspirational for all Users.
Challenge – Economic Uncertainty. Inflation, interest rates, cost of services are all going up. The challenge comes when/ if to pass costs onto consumers and what impact this will have.
Trend – Niche spaces. Create spaces for micro communities within the Centre. For example, space for creatives, space for women, space for LGBTQ Members. This niche, community-centred approach appeals to members who are looking to feel seen, safe and supported.
Challenge – Market Saturation. Co-working spaces are still a viable business model, for landlords and providers alike and they pop-up throughout cities and suburban regions. This increase in competition may outweigh demand.
Trend – Hospitality as a competitive edge. Having to compete with larger operators who have more extensive resources, smaller spaces need to stay competitive and focussed on community. It is easier for smaller operators to respond and listen to their customer needs, and act upon them, personalising the member experience.
Challenge – Fluctuating occupancy rates. See Economic Uncertainty above. Freelancers, start-ups and charities are a co-working space’s bread and butter however they also present a high turnover. Is it time to concentrate on retention rather than on-boarding new Members?
Trend – Be authentic but adaptable. Focusing on what makes your space stand out from the rest and get that message out there. However, nobody wants empty offices, adapting spaces or terms to fit the market is worth a risk, but keep the message clear throughout new endeavours.
Other trends of note include Wellness and Social responsibility, here at One Hub we signpost to local initiatives that focus on wellness in the workplace, partner with local gyms, work with local charities and are focussed on ESG standards. Multi-functioning spaces, we are establishing more dynamic spaces that will appeal to a wider market. Although some of the above seem to roll around most years, it is always worth using market insights to help focus plans for the year ahead.
