Have you noticed an increase in the number of coworking spaces available in your local community? That’s no coincidence. Businesses and individuals are increasingly turning to coworking spaces as offices, workspaces, and even networking opportunities. Thanks in part to the higher numbers of remote workers and in part to the high costs of traditional offices, professionals are eager to take advantage of them.
But just how much, exactly, has coworking grown in the past few years, and where does it go from here?
One of the most telling statistics is the growth of enquiries for flexible workspaces; in other words, how many people are pursuing coworking spaces, and how is that number changing? Across all major cities, globally, the average growth rate was 17 percent. In New Delhi, that rate was 46 percent.
Similarly, demand from existing clients increased 19 percent, on average, across major cities globally. This is in line with consistent double-digit growth, year after year, since the coworking trend began. Could this double-digit growth continue?
One of the biggest factors encouraging people to pay for coworking space is its cost-efficiency when compared to other real estate options—and cost-efficiency is still improving. Markets that have seen an increase in supply of 20 percent or more have seen reductions in per-desk pricing during the same period; in other words, in cities that have more coworking spaces, coworking space prices tend to decrease. This is important as it shows that the coworking model is becoming not only more abundant but more accessible.
Percentage of Overall Office Space
Let’s look at the number of coworking centres available, and the percentage of office space they comprise. In 2019, there were roughly 33,072 coworking centres globally. In 2020, that number is projected to rise to 37,840. By 2022, that will increase to 49,500—a trend of continued growth.
In some cities, supply is absolutely surging; for example, in London, there are more than 1,400 existing centres, with a 17 percent growth rate.
And globally, flexible spaces currently represent 5 percent of overall office space in major cities. That might not seem like much, but over the next 5 years, that percentage should increase to 10 percent. From there, it could grow even higher.
The Future of Coworking
What’s in store for the future of coworking? As you might expect, the trends of increasing coworking space availability and decreasing coworking costs will likely continue. Coworking will be increasingly favored by businesses and individuals all over the world, and gradually begin representing a greater percentage of total office space.
Are you interested in finding a coworking space for your business? Or are you ready to tour a coworking space in your area? Contact us today and schedule a tour or learn more today!
alternawork is a dynamic coworking facility serving the thriving tech community in the Greater Toronto Area (GTA) and Kelowna.
You might also like:
- The State of Coworking in 2020 (and Where It’s Going From Here) - January 21, 2020
- Happy Holidays from alternawork! - December 17, 2019
- Serviced Offices vs. Coworking Spaces: Now You Can Have Both - November 8, 2019