Flexibility has become a popular choice for landlords and operators in order to appeal to growing tenant demand, but this option comes with its own challenges for coworking companies and landlords as users are not contractually tied to a space for a long period of time. This leads to the risk of occupiers losing occupiers to competitors who might seem more attractive or offer lower prices.
Some providers have made an effort to retain users by offering amenity packages, but with an economic slowdown approaching, investors are concerned that users and businesses will let their coworking memberships to expire.
In order to create more occupier allegiance, landlords and operators need to offer long-lasting incentives, preferably something that creates a strong connection to the coworking space and builds a sense of community.
For example, Transwestern has created an ecosystem that nurtures collaboration. Ecosystem tenants have found that shared services are more enticing when aligned with a shared purpose.
An office ecosystem helps reduce risks for building owners and coworking operators as users are more motivated to keep their seat within the community, particularly during an economic downturn.
This is particularly true for nonprofit organizations as these spaces help them focus more resources on the communities they serve rather than being burdened with administrative overhead. For example, Civic Exchange in Chicago is a coworking space and learning community that is centered on how new, information and technology can support democracy.