Major cities are no longer the main target for coworking operators. Metropolitans are seeing an uptick in coworking spaces, and as rents have started rising rapidly, tier II cities are given the opportunity to take advantage of this massive industry.
Tier II cities are expected to house about 50% of startups by 2020, which will most likely reduce the burden on metros and increase coworking space expansion to cater to the technology and other startup industries.
Coworking spaces allow startups to incubate ideas and provide them with an environment that shares the same values to nurture such business plans.
Tier II cities also provide plenty of room to create suitable infrastructure for coworking spaces, which can provide lower rent costs and overall be cost effective for various sized companies.
Shared workspaces also allow startups an easier path to scale up. Coworking provides companies with the option to start with as little as they need and work their way up as necessary.
On the flip side, some startups that inevitably fail to flourish can find winding down a business within a coworking space easy and doesn’t break the bank.
