Coworking giants, such as WeWork and IWG’s Spaces, have started to expand their services and lease high profile properties in Auckland’s rapidly growing office market.
Local coworking firms still have a stake in the massive market
While India’s coworking space market is offering more feasible office options for the country’s booming startups, it is also allowing foreign coworking players to take a chunk out of the market.
The State of the Startup Ecosystem Report found that India hosts 300 coworking spaces, totaling 720 centers across 15 million square feet of space. Some of these are ran by major players, such as WeWork and Awfis.
Yogesh Arora, director and cofounder at AltF CoWorking, said that large competitors have made a big impact in the market, but local players dominate the mid-range segment.
Despite overseas coworking operators offering deluxe facilities that cater to well-funded startups, small coworking firms have been able to offer smaller spaces at much lower prices to attract early-stage startups that need less workspace amenities. Operators like Ideashacks Coworking give entrepreneurs an innovative workplace solution other than their homes or a coffee shop.
Founders of coworking spaces say that these shared offices were always meant to be a hub for growing startups, but the model has been misinterpreted over the years. Now, the world recognizes how valuable the startup industry is and has since transformed the coworking sector.
The Latest News
Delivered To Your Inbox
Many coworking operators believe that encouraging interactions among members and prioritizing wellbeing through various events allow workers to become more productive.
Still, coworking space still face major challenges including finding the right locations and prices that meet an area’s demands.
Although massive coworking firms could come off as a threat, many smaller operators see it as encouragement and a way to meet the demands of international clients.
Moving forward, technological advancements will begin to play a bigger role in coworking spaces with video calling, messaging, task management software and more.
Coworking consumption in India will continue to climb and is expected to grow an additional 7 to 9 million square feet by 2020.
Latest on Daily Digest
Sources have revealed that CBRE, the world’s largest commercial real estate services firm, is looking at 3 World Trade Center to house its new coworking brand Hana.
Hoxton Hotel is branching out from traditional hospitality services with the launch of its coworking brand Working From_ at its London Southwark and Chicago locations.
Speaking at the 2019 MIPIM conference, IWG’s CEO Mark Dixon said that companies of various sizes should offer some form of agility in order to attract and retain talent.
As the coworking space sector continues to evolve and grow, experts believe that there will be a 25% growth of these offices within retail properties through 2023.
Ryan Simonetti, CEO of Convene, believes that the firm sets itself apart from the competition by going beyond serviced workspaces and offering more hospitable amenities.
Building Industry Gathering Oakland has opened its 3,650 square foot, one-of-a-kind coworking space geared towards small minority and women-owned businesses in the area.
Novel Coworking’s newest Chicago location will include workspaces, such as office suites, private offices, and coworking space, to accommodate various-sized companies.
As the gig economy continues to become more prominent amongst younger professionals, the demand for flexible coworking spaces from this generation rampantly grows.
Hospitality company Accor is working to expand its coworking services to 1,200 of its hospitality locations, which could make it the largest coworking provider in Europe.
Brexit has left the London office market in development limbo, but thanks to the surprising resilience of the market, builders are moving steadily forward with projects.