"This Evolution of Coworking - from a Desk and a Chair, to a Collaborative Workspace, to a curated Community - will continue as Companies and Professionals grapple with the changes and Challenges in How, When and where We Work". Dev BT
The Coworking Entities
Market Growth Analysis
The Coworking Space Service Providers
Global Coworking Space provider, currently Dominating in this category. The valuation of this Entity has surpassed that of Regus PLC (Dominating player in Business Centre category for the past 21+ years). Currently every-one is closely following this Unicorn’s business model.
Currently as on October 2017, wework has presence in 58 Cities & 255 Operational Coworking Spaces across the globe VALUED $20billion, it’s largest Investor is Japanese Giant Softbank with $4.4 billion Investment.
With 63 Locations Operational as on November 2017 under the Brand Name SPACES (www.spacesworks.com) and lot more under-way, it is the 2nd largest players in Coworking Space. This Coworking Space Entity is controlled by Regus Plc.
Regus Plc., A Dominating player in Business Centres across the Globe, with 2926 locations operational Worldwide as on financial year 2016.
China’s answer to wework.com – Chinese are FAST @Copycat production, ditto copy of wework.com from China, expanding very FAST and expected to list in Hong Kong stock exchange soon.
Currently operational 30 Coworking Spaces, strong presence in Asia Pacific region and expanding fast and looking to expand @Global markets.
One of the Biggest Office Space providers in UK, strong presence and well known name in Business Centre Spaces, however, expanding FAST in Coworking Spaces, have BIG plans to expand in Global markets.
The Entity is controlled by Global Private Equity Giant – Blackstone group.
One of the Prominent Coworking Space providers in India, have seen drastic change in branding and approach, space designs and services after the visit of wework.com co-founder in early 2015, before that their spaces were just Ordinary. Growing fast, currently have 8 locations operational in various cities.
With 21 Coworking Space centres operational as on April 2017, Awfis.com is the largest Coworking space provider in Indian market and plans to take this number to 100 centres in 2 years.
One of the key Investor in this Entity is Global Private Equity Giant Sequoia Capital with $20 million fund Investment in series-B round funding.
Promoted by Siddharth Menda, the scion of one of the largest Commercial Real Estate Developer RMZ Corp, it has moved-really fast with 9 Coworking Spaces operational in very short time and have BIG expansion plans to move to more cities and going Global in coming years, seems to be following wework.com model closely.
These are the few key Entities in Coworking Space sector, however, there are Hundreds of smaller players spread across the world, some even operating from 500 sq.ft. space as Coworking Space. However, in the long run, only those will survive who will offer Better, Valuable Services, lot of Global Networking opportunities, Innovative Technologies @Best price, since India is highly price sensitive market.
Apart from these lists, there are other Hundreds of smaller or Regional players, operating as Coworking Hub, however, most are just a Copy-Cat and nothing to boast about.
Apart from new entrants, established Business Centre entities are customizing their service features and adding coworking in their operational strategy to counter growing clout of wework.com.
The way Coworking Spaces are springing-up every now and then, we foresee over-supply scenario’s by 2020 and most smaller or non-competent entities shutting-down and only Bigger & Better players dominating the Coworking Space.
In coming years, we foresee another possibility that most large developers entering into this segment and competing directly with Coworking Space providers.
Coworking Spaces are here to stay and will co-exist with Commercial office Leased spaces.
Market Size & Growth
Why Coworking Spaces Growing so FAST
Rise of FREELANCERS & SME Economy
India - 1.3% total Population - 37 million
USA - 34% total population - 54 million
Changing Entrepreneurial Ecosystem
Emergence of New Work Culture
Availability of prime Commercial Real Estate @Best Price
Large office Space Occupancy level @Lowest
Corporate's cutting-down on Lease Rentals
These are the few Key Reasons of Coworking Spaces growing so fast. The Most Important factor is AFFORDABILITY, anyone, anywhere office culture i.e. if someone reside in Rural Town, he/she can have Corporate Address in the City Centre @Commercial district, anywhere by paying minimal per month rental, for example VIRTUAL OFFICE plan with all standard office features, technology has made all these possible.
Apart from the following Coworking Spaces has lot of Competitive Advantages over Commercial Leased Spaces.
The Coworking Client Category
Anyone or everyone who is looking for Professionally managed Global Workspace with valuable additional services in professional work environment. The client category includes;
Corporates - Domestic & Global
Freelancers-Doctors-artists-Designers - CA's
Service Providers - All category
Should Coworking Space be CATERING to one Specialize Sector only?
Our Answer will be – BLUNT – NO!!!
It’s like leaving a $100 note on the table for the sake of 1 penny.
As a Coworking Space Management Co., you should and must cater to all category of clients rather than focusing on only 1 category or sector, otherwise getting 100% occupancy level will always be very tough, forget about achieving profitable milestones.
Corporations Using Coworking Spaces
Bank of America
Silicon Valley bank
McKinsey & Co.
And Many More........
Commercial Real Estate market is worth more than $3.41 trillion and Coworking Spaces are going to be an Integral Part of Commercial Office space – the one differentiator factor is;
- Commercial Leased office generates revenues purely from Leased Rentals.
- Coworking Spaces generates Revenues from Leased Rentals + additional Services (which makes clients life more convenient & more revenue for Coworking Space entity).
In our next post, we will discuss more on other subjects, for more updates on latest posts, subscribe to our newsletter, if you have any opinion or better solution, lets discuss on our comment box, till than Happy Reading!!