Is Coworking Dead?

Coronavirus disease (COVID-19) pandemic has changed the way we live, and that includes how and where we work. And even after initial lockdowns eased, many still prefer to work from home due to fears of getting infected.

Which leads us to the question: is coworking dead? We once witnessed how coworking spaces started sprouting left and right. Amid the pandemic, will we see them all pack up in one fell swoop?

The Appeal of Coworking Spaces

Answering the question, “Is coworking dead?” requires an analysis of the industry and the factors that made it a huge success in the first place. 

Here are some of the factors that contributed to the coworking boom over the past decade:

Practicality

From startups to industry giants, many ventures opt for flexible coworking space because of the practicality it offers. With shared offices, they no longer need to pay for an office’s upkeep or hire concierge staff. They can come and go as they please and settle a fixed amount for the services and amenities they need.

Flexibility

Because a coworking office doesn’t come with a long-term lease, it allows businesses to be agile. For instance, tenants who are expanding the team can easily buy more seats or do the opposite when downgrading. Because there’s no long-term commitment, the team can also transfer to another location easily should they need to.  

Company Culture Adaptability

Thanks to the information superhighway, you can pretty much do most business tasks online these days. That said, startups today have adopted a work culture that’s centered on output quality and not necessarily on hours rendered. Coworking spaces have allowed ventures to have a space to meet and use when they need it, without the responsibility of having to maintain it. 

Collaboration

Working with other teams in one space lets you make friends and collaborate with other like-minded individuals. For instance, if you’re an events planner, being in a flexible workspace allows you to network with potential suppliers. It may even open doors for business partnerships in the future. 

If we look closely, the same benefits above can also work against coworking spaces. Let’s take flexibility, for instance. Because there’s no long-term lease contract, clients can easily bolt out in case of an unpredictable situation such as a pandemic. 

For ventures whose company culture allows for flexible working, the team probably has work-from-home allowances already.  And from a financial standpoint, working from home can be more practical than spending on coworking seats. After all, almost everyone already has an internet connection at home.

As for collaboration, the pandemic has left us with no other choice but to learn to collaborate through online channels. Virtual meetings have become the norm, while webinars have quickly replaced forums and conventions.

So, Is Coworking Dead?

Now let’s go back to the initial query. Is coworking dead? The quick answer is no. 

Here’s the long answer: the global coworking industry has suffered a huge blow due to the pandemic. Despite this setback, however, industry players are confident that they could bounce back from the crisis. 

In fact, the 2020 Global Coworking Growth Study says that despite the economic setback in 2020, the industry is expected to pick up in 2021 with an annual growth rate of 21.3 percent.

The pros must outweigh the cons for the coworking option to look as attractive as it once had been. And from what we’re seeing from most flexible workspace providers, they’re working hard to make benefits worth it.

Here are some of the revamps coworking spaces are implementing to give their ventures a shot in the arm.

Paused Membership and Rent Breaks

To retain clients amid the crisis, some coworking spaces offered membership pauses. Aside from not charging clients during the lockdown, some also offered rent breaks. This step is a huge help for small ventures which may have suffered financially during the lockdown.

Virtual Office Plans

Even if many ventures may opt to implement a work-from-home policy post-crisis, they’d still need a virtual office. Many coworking spaces offer this service in their subscription plans, including mail services, business curation, and IT support.

Strict Protocols

At present, the main disadvantage of renting a coworking space is the risk of infection. Going to a common location to work would likely expose you to other people. As a solution, coworking spaces implemented a new floor layout that adhered to social distancing protocols. Most players also invested in plexiglass dividers that provide a barrier between workers.

Despite more people getting a taste of what it’s like to work from home, it doesn’t guarantee a general shift. For one, those who find it difficult to separate personal from professional prefer to go back to their traditional routine. Employers will also pivot back to their pre-COVID setup if employees are less productive than they used to be.  

Given the measures mentioned above, the global coworking industry could survive the crisis. The recovery may be slow, but the way things are looking, it would be steady.