Towergate Insurance Explores the Coworking a Business Model: Does it Work for Everyone?

Towergate Insurance put together an infographic that explores the ups and downs of coworking, asking the question: Is it a model that works for everyone?

Coworking spaces meet the needs of a more digitized workforce

In 2013, there was an overall 83% growth in coworking facilities and 117% increase in the number of people coworking at these centers, making it around 110,000 people that were using coworking spaces around the world.
Workspaces today have seen a significant transformation due to the impact of technology. The Towergate infographic shows that around “35% of small businesses use Skype as a primary communication service”.

What are the benefits for commercial real estate owners & landlords?

Real Estate owners and commercial property owners are quickly catching on to the added value coworking spaces add to properties. In a recent interview with the upcoming Social Workplace conference, director of business development at Workbar in Boston (USA), Devin Cole, explained, “coworking spaces give landlords an active storefront”. In addition to aesthetic improvements, coworking spaces also attract new clients, which can lead to new tenants and leases.

Reminder : between the years 2000 and 2011 the number of freelancers in Europe increased by 82%, bringing that number up to a staggering 8.5 million. By 2025, the number of flexible workers is expected to grow even more as 75% of the workforce will be made up of millennials, many of which prioritize work life balance over corporate culture.

In addition to a changing workforce, property owners must consider startup growth has been significant and that around 1/3 of businesses fail within the first year, which can deter them from signing a long-term lease.

A more creative way of life

Coworking spaces are often defined by their flexible and creative attitude, but it’s not all fun in games. Out of the 71% of individuals, 60% of respondents felt that coworking “led to an improved standard of work”. And it’s not just about productivity, but also the increasing desire to work-life balance. A whopping 90% of coworkers have an increase in self-confidence, and 70% feel healthier in a shared workplace than they did when based in a traditional office.

What are some of the challenges?

Coworking has experienced a boom, but that doesn’t come without its pitfalls. 27% of workers feel that “flexible working is inappropriate for managers”. For spaces, 57% of those that are on the smaller side (fewer than 10 members) reported a loss.

Yet as the movement matures, coworking members and space operators are finding ways to improve the coworking business model. Some important things to consider are your members’ needs, such as events, amenities and up to date internet.

Amanda Gray

This infographic was originally posted on the Stamford Information Center blog