Imagine you could choose who you work with, or better yet, imagine you did not have to go through all the fuss of remembering the names of everyone in your workspace. Sounds awesome, right? Not so long ago, the freelancers of the world were limited to their nearest coffee shop to meet a potential client. But then there was coworking! Cozy to luxurious, to sector-specific these amazing shared offices are conquering the world. And believe it or not, the latest coworking statistics indicate that in 2020 the number of these super convenient offices is expected to reach a staggering 26,300. Take a look at our smart selection of stats on the subject and get ready to be amazed!
Coworking began as a movement triggered by digital nomads and almost instantly transformed into a model for providing business services. This gave birth to coworking spaces of different styles and sizes, offering cooperation possibilities and much more. So it should not come as a surprise that there are currently more than 5 million coworkers thriving around the globe. Projections remain solid, forecasting that by 2022 in the US alone the number of coworking staffers will pass the 1-million mark.
If you wonder how many coworking spaces are there in the world, the answer is 22,400 at the end of 2019. Just 14 years ago, back In 2005, there were only three coworking offices in the world. Today, Asia leads the gang of coworkers with the highest number of shared working spaces, while Europe, the Middle East and Africa altogether have 6,850.
This new, innovative way of open working is spreading far and wide in the US. By the end of 2017, there were more than 4,000 coworking locations in America. And how many coworking spaces are there in the US today? An incredible 6,293! Can you believe it? In two years alone, this figure has skyrocketed with Manhattan being the crowned king to rule the US coworking market.
From 2014 to 2018, the number of co-shared workspaces increased by 205% with the number of operators growing by 138%. And the global value of the coworking market is not expected to start going down any time soon. In fact, coworking is growing greater than Walmart and coworking industry statistics indicate that in 2020 shared offices around the world will reach the number of McDonald’s outlets.
(AllWork, Victory Workspace)
These authentic and flexible workspaces offering freelancers the freedom to follow their passion are causing a splash on the real estate market, too. The size of the total leased coworking space increased by half in just over a year. By 2022, the number of cowork spaces is set to rise by 13% globally and by 6% in the US, coworking stats suggest. And since we mentioned Manhattan, interestingly, an approximate 10% of office space rentals in the Big Apple are leased as coworking spaces.
The size and capacity of any workspace matter tremendously and should be chosen based on the particular demands of freelancers. Shared office facilities absolutely must offer desks, meeting rooms, and other designated areas and resources for individuals that do now wish to depend on location. On average, shared offices around the world today can accommodate 83 independent employees.
Since we’ve discussed size and capacity, next on our list is cost. Do coworking spaces make money? The answer is a resounding yes. Although at present only 40% of coworking facilities are profitable, the fact is that within two years from their launch, almost three quarters become profitable. Cowork spaces rely on membership fees as basic income but the majority of startups are supported by the owner’s other income in their initial period of operation.
Almost one-third of shared office facilities lease rooms for meetings and events, provide food and sell tickets for workshops as part of their all-inclusive package. Coworking statistics indicate that facilities earn 10% from leasing out meeting offices, another 10% of their revenue comes from event rooms, 5% come from food and beverages, and another 5% is generated from workshops and other events. One-time membership fees, 24-hour access, on-site receptionist, and virtual offices are also extra services that some of the big spaces provide.
Working as an operator of a shared workspace is not an easy job. It’s not just about finding a convenient space and doing the necessary renovations and adjustments. Putting it on the map is not easy which is why 50% of operators have a hard time attracting new members. Plus, there are rent costs. Operators allocate 38% of their profits to paying rent and 17% to wages and operating expenses.
From a luxurious chalet in the Swiss Alps to a villa in sunny Bali, some of the best cowork spaces in the world truly live up to the expectations of flexibility this trend preaches. Coworking trends suggest the average desk price in 2020 was $183, down from $205 in 2018. Remember that comfy chalet in Switzerland? It is the priciest of them all and will cost you $358 per month.
(Coworking Insights, Coworking Insights)
Shared workspace companies are categorized as new, expanding (two or more locations), and large coworking chains or franchises. New businesses account for 65.3% of the cowork spaces opening every year. Expanding companies come in second with 26.2%, while chains are third with 8.6%. Coworking trends clearly indicate that industry growth is mainly generated by novice entrepreneurs and autonomous businesses.
With headquarters in Luxembourg and branches all over the world, Regus is the number one provider of coworking facilities, holding an 11% market share globally. Regus or IWG offers instant virtual offices, ready-to-go serviced offices, video teleconference services, and all sorts of other options. Other big names on the market include WeWork, Breather, Knotel, and Servcorp.
Coworking industry statistics compiled by Coworking Resources point to Luxembourg, Singapore, and Ireland as the stars in this story of the perfect workspace. The research looked into the world’s 50 countries with the highest number of coworking facilities per 1 million citizens and the results are incredible. 8.5 new workspaces are opening in Luxembourg every year. Singapore is ranked second with 4.7, and Ireland is third with 4.4 new coworking spaces sprouting up every year.
If anyone still has doubts about how dominant this new sensation in the workspace industry is, they haven’t asked the right question. Exactly how big is the coworking industry? Well, with London opening coworking office spaces every five days, New York City every week, and Toronto every other week, it is safe to say this new sensation is spreading like wildfire.
A Global coworking survey says coworkers are hiring like crazy. Coworking office facilities are in fact accelerators for business growth. An incredible 40% of location-independent employees intend to hire one to two people, 27% will add two to five, while 10% expect to employ up to 10 people in the near future.
Coworking is like a never-ending buffet. And what makes the concept so awesome is that you can accidentally bump into a digital designer or sit next to the web developer you desperately needed to upgrade your website. A total of 82% of co-workers report that, since they’ve nested in a co-shared workspace, their networks have expanded significantly.
(Source: Ergonomic Trends)
Working from the comfort of one’s home with your favorite pajama on can be a true bliss. But let’s face it, it gets lonely and it’s not always fun. In a coworking space, you get to interact with one to four members a day, or none, depending on how your mood is. Coworking facts show that 89% of independently employed people feel happier since they’ve joined this movement of utter flexibility. What is more, 83% of respondents said they feel less lonely.
Coworking spaces by definition are established as a productive and conducive working environment-productivity statistics show. Plus, everyone around you is genuinely there to work. So it is no wonder that in addition to feeling more motivated 69% of coworking office space inhabitants say they have acquired brand new skills. 68% claim they’ve upgraded their skills since they became part of a coworking community.
The coworking space business model is based on a vibe of purpose blended with competitiveness. And the results are incredible. Coworking productivity statistics suggest shared offices make 70% of their members healthier. 64% of people sharing an office with a coworker have improved on completing their tasks on time, and 68% say they are better focused. But perhaps the best of all is that 60% claim they are more relaxed when they get home and this, ladies and gentlemen, is what all working heroes deserve.
Coworking space operators should give themselves a pat on the shoulder for doing a magnificent job. Running and managing these flexible work spaces is certainly not easy, especially for those operators who start from scratch. Thankfully, coworking stats indicate 92% of coworkers are pleased with their coworking spaces, giving operators the recognition they deserve.
More than half of coworkers feel they are part of something greater. Their social lives are blooming and their social networks have spread by 79%. What makes these coworking hubs so valuable is that a staggering 80% of their members say they are happy to have someone to interact with, while 54% socialize on weekends with other coworkers.
The coworking space business model has proven quite successful and has found target users such as SMEs and startup teams. SMEs are currently the primary occupants of coworking spaces. Startup teams come second with 27.12%, followed by freelancers with 16.61%. Interestingly, digital remote employees are a minority with 2.82%.
Although one would expect freelancers, hackers, and remote employees to lead the pack of shared workspace creators, this is not exactly true. Who uses coworking? Just half of coworking hub members said they were part of the freelancing, consulting or telecommuting industry, 40% responded they were hired by employers flocked in coworking spaces, and 10% are employers.
The majority of coworking members hold a university diploma. A total of 41% have a Bachelor’s degree, another 41% have a Master’s degree, and 4% have already completed their Ph.D. Amazing, right? What is even more amazing is that the number of women with Master’s degrees is higher than that of men.
Coworking statistics indicate that members in smaller cities are older (38.5 years of age) than those in big cities, whose average age is 34.5 years. Small businesses with staff occupying shared office facilities are the oldest group (40 years old on average), followed by freelancers in their late thirties (38 on average). Meanwhile, nearly half (43%) of the coworkers have not yet turned 30.
Women crave flexibility in their professional life and shared workspace companies can certainly serve their needs. With 40% of members being women and female memberships continuing to rise, coworking spaces truly offer a remade workspace for women across the globe. What is more, almost half or 46% of freelancers are women, coworking demographics show.
No matter how flexible a workspace is, most women are forced to pause their careers when they become parents. This is particularly true for the 30-50 age group. Some 50% of female coworkers at the age of 35 to 49 and 70% of those aged 50+ have one or more kids. While most of them seem to be able to keep the balance between their personal and professional life after the appearance of their first kid, their number goes down sharply once they have their second baby.
The real beauty of coworking spaces is that they are just the right fit for all types of personalities, introverts included. As part of a global coworking survey, a solid 30% of respondents declared they were extroverts, while 22% described themselves as introverts. The remaining 48% said they were a mix of both.
When it first appeared, coworking was largely seen as a hype that would fade out in a few years. It was perceived as a concept that would mainly benefit freelancers, millennials, and startups. Soon, however, coworking spaces became enterprises and experienced rapid growth. 14 years later, the demand for flexible workspaces is higher than ever. What was once seen as just fashionable, has now become a serious investment in talent, startups, and developers alike. It is obvious today that coworking is not another enthusiastic craze but a reinvented way of working. And it’s here to grow, evolve and stay.
Picture this. You are self-employed and need to meet with a prospective client. Is there any place nearby where you can meet and talk undisturbed? Well, with an average membership fee of up to $200, coworking offers you an opportunity to work unbothered anywhere in the world. The package entails lower office costs, desk, flexibility, more networking, new skills, free seminars, higher productivity, and last but not least, working with people who actually share the same views as you. Moreover, some facilities offer amenities such as Yoga spaces, climbing walls, meditation rooms, and much more. Still wondering why coworking is getting more popular by the day?
Very soon, freelancers will account for half of the breadwinners in the US. How do you accommodate half of a nation’s workforce? With coworking, of course. The best thing about it is that it’s a win-win deal for everyone. Operators, employers, and independent entrepreneurs alike get to reap the fruits of this revolutionary movement. Meanwhile, operators are getting more and more innovative. They now offer co-living spaces childcare spaces, all aimed at attracting new members and meeting their needs. From professional setups to nice places to meet your clients, coworking is making history and shaping the future as we know it.
Flexibility, affordability, and productivity are the founding principles of the coworking industry. Roamers, freelancers, and enterprises with big dreams and even bigger ideas are beginning to see coworking spaces as their offices of the future – shared workspaces giving them the fix they need to lead a healthier and more balanced life. Existing coworking statistics clearly demonstrate that Shared working spaces are reimagining the workplace as a notion, bringing about a revolution of their own.