These two themes were both a source of irritation for some participants and a breath of fresh air for others. I haven't reduced these themes to their most basic forms, such as a step-by-step guide to navigating the future of shared office space. Nonetheless, these themes are rich in actionable content for those who are ready and willing to shape it, to dive into the complexity, form structures and connections, and create a significant contribution to the fields of work, workspaces, and the technology that supports them. Themes include:
- Coworking will not be popular in the future. That's not necessarily a bad thing.
- The massive surge in interest in coworking has only just begun, at least among those who can have a significant impact.
Theme No. 1: It's over; long live coworking!
We frequently find ourselves in a conversation that goes something like this at coworking conferences and events around the world:
"I understand," Barack says, "but they're not really coworking." They're simply hip corporate offices that call themselves coworking spaces."
it's the never-ending this-is-coworking-and-that-isn't-coworking argument. It's exhausting, and it never ends. But it did go somewhere this time, at this particular event. There's somewhere very interesting.
I kept finding myself in different versions of the same conversation throughout the day. Discussions about how the term "community" has become a meaningless buzzword. How every type of space is appropriating the term "coworking" and diluting its utility as a label. How difficult it is to make money running a coworking space. Furthermore, there has been an increase in demand from corporations and traditional CRE firms for lengthy Q&A sessions with coworking teams and site tours. Everything we've talked about boils down to one thing. The concept of coworking will not take over or replace the traditional CRE industry. In fact, the CRE industry will absorb coworking philosophies and methodologies. And these new philosophies and methodologies will fundamentally alter how we manage, market, and consume commercial or value-generating space.
To summarise, coworking will not be the new way of working in the future. However, how we work and use commercial space will change in order to meet the insatiable demands for flexibility, service, and culture that coworking users have come to expect and that coworking spaces have pioneered over the last twelve years.
Maybe you've just arrived at this party, and it feels like I've just rung the last call. Maybe you're one of the old guard idealists who still hosts the same community-building conversation at the annual coworking event. Maybe you're just a sceptic who wants more proof. So, sir or madam, you'll have proof.
The Second Theme: The Coming Tide
Corporate workspaces and traditional CRE players are finally showing a significant interest in coworking, but this is just the beginning. Over the last year, we've been following some of the most interesting and significant developments regarding large CRE firms adopting coworking methodologies.
That's just the tip of the proverbial proverbial iceberg. These examples do not include the hundreds, if not thousands, of small-to-medium-sized commercial real estate firms working on similar projects and adopting more flexible asset mindsets.
Every non-traditional CRE professional is thinking the same thing: "this is absolutely correct, and once we've boiled space management down to a science, we're going to create an education programme to train our staff on how to foster community." We'll set up test sites to try out new revenue streams and products, and we'll use a fully automated technological solution to handle billing, access, and intra-space communication. We'll start marketing our spaces in the same way that coworking spaces do, with events, classes, and community outreach, but we'll be able to do it better because we'll have more resources.". Many coworking purists will find this approach cold and corporate, but that's a discussion for another day. What matters is that forward-thinking CRE professionals are thinking and acting appropriately, and the world's real estate behemoths have more than enough money to pull it off. Furthermore, they already own all of the most valuable assets.
This may sound frightening or depressing to coworking purists, but it is actually a good thing. It's beneficial because it elevates the coworking industry from a $5-10 billion market to a potential $12.6 trillion market. This increases the opportunities for investment and the potential for exciting projects. It implies that there are opportunities that we have yet to imagine.
What difference does it make that 'coworking' will no longer exist in the future? It's a concept that's been put into action. And, like any healthy concept, it's changing. What matters most is that coworking methodologies are poised to transform an industry that serves as the foundation for the entire economy. Everyone requires a place to work, create value, and live. The space industry (think carpets, not comets) is unquestionably fascinating.
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