Will Co-Working Continue if WeWork Doesn’t?

Home » Small Business » Small Business News » Will Co-Working Continue if WeWork Doesn’t?

Will Co-Working Continue if WeWork Doesn’t?

If you’ve been following business news at all lately, you’ve surely heard about the troubles surrounding WeWork. The multinational co-working space company was on the verge of an initial public offering a mere weeks ago, until word of mismanaged funds got out, eventually leading not only to the cancelation of the IPO but also to the ouster of CEO Adam Neumann. In the wake of this shakeup, some small businesses and solo workers may be wondering what the future looks like for co-working spaces. The answer it seems is localization.

According to a survey by the business tool reviews platform Clutch, it’s true that WeWork is still the leading option among co-working employees. However, while 39% reported using WeWork, 36% said they used local co-working spaces instead. Meanwhile the expansion of such spaces is expected to continue with estimates suggesting there could be 26,000 locations worldwide by 2022 compared to 18,000 today. Interestingly, back in 2015, there were only 8,000 co-working spaces.

Offering his insight into what’s ahead, marketing specialist for Focus Property Group (which owns Denver’s Enterprise Coworking) Andrew Schuh told Clutch, “I think the smaller, local coworking spaces will overtake WeWork. You can’t stop that kind of momentum [that coworking spaces have].” Schuh went on to note the benefit that smaller co-working spaces have, saying, “Being local and involved in local events and forming partnerships with local businesses has really helped us. We have a local touch that WeWork doesn’t have.”

One aspect that could complicate matters is that co-working employees have shown great loyalty to their spaces. Clutch found that 75% of co-working businesses have been in their current locations for over a year, with 18% staying put for more than five years. On the other hand it’s also worth noting that only 22% of those surveyed said they rely on co-working facilities as their only workspace. Instead the majority said they also work out of traditional offices, from remote locations, and on-site from other locations.

Regardless of what ultimately happens with WeWork, it seems that the revolution they helped to foster will go on without it. Moreover, while the flexibility that WeWork offered may have been great for travelers, there is something to be said about the “local touch” (as Schuh put it) that smaller chains and one-offs can offer. So whether you’re a solopreneur or a small business owner, don’t let WeWork’s issues lead you to rule out co-working options for yourself.

Comments

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Real Estate Tech Company Spruce Raises $29 Million

One recurring theme in the world of FinTech has been the ability to conduct virtual, digital transactions whereas in-person meetings were once required. While these innovations first replaced simple functions such as sending money directly to a friend or family member, they've grown to include more complex transactions, such as...

What is a 401(k) Loan and is it a Good Idea?

For many employees, their 401(k) plan is their main means of saving for retirement and it may also represent the bulk of their net worth. Given this reality, it's no wonder that some individuals might look at their retirement savings and wish that they could utilize some of those funds...

Sales of Existing Homes Fall to Near 10-Year Low

During these interesting times, are you in the market for a house? If not, you certainly aren't alone. As CNN Business reports (and according to data from the National Association of Realtors), sales of existing homes dropped by 17.8% in April compared to the previous month. Similarly sales were down...