Coworking: No Longer a Fad but a Business Solution

Picture a coworking space and you’re likely to visualize latte-sipping hipsters running their own tech start-ups from their impossibly slim Macbooks.

It’s commonly accepted that a shared workspace provides these entrepreneurs opportunities for incidental collaboration, socialization and networking. But a recent Cushman & Wakefield report shows that the share of freelancers and independent workers – once the dominant users of coworking space – have dropped by nearly 15% over the last three years.

In their place are more enterprise clients (companies with more than 500 employees). As the relationship between corporate real estate, coworking and large companies grows increasingly intertwined, we look a little closer at the emerging trends in the coworking landscape that have transformed it to become a business solution.

Top Trends to Watch Out For

  • Coworking is going corporate

Corporate occupiers have been the major drivers of the expansion of coworking in several Asian cities over the last two years. There is growing demand for coworking spaces from corporates due to the attractive options it offers such as flexibility and collaboration.

  • Developers are making coworking spaces a staple

Landlords are creating a shared workspace environment to lure in corporate occupiers. Some are even partnering with coworking operators to design and build a social environment for corporates in the hopes that it will boost leasing.

  • Coworking spaces are becoming in-house innovation hubs

Corporations are starting their own coworking facilities to innovate and experiment. Through incubator and accelerator programs, they can provide start-ups access to state of the art facilities and meeting rooms that foster collaboration and innovation. Ideas that come out of these collaborations can be converted into a business solution.

As the potential for cost savings, opportunities provided by coworking’s activity-based working setup and preferable lease terms become apparent for companies of all sizes, the trajectory for the industry looks positive. Generation shifts and the changing nature of work will continue to sustain the proliferation of coworking in the region.

To learn more about the emerging coworking trends in Asia Pacific, read the Cushman & Wakefield report.