Some people believed co-working and shared office spaces were just a fad that started around four years ago and would quickly fade away. These same people are surprised that they are still around and are among one of the fastest growing commercial real estate segments.
The reason shared office spaces are successful is because they began around the same time as many of the new tech startups and collaborative think-tanks. Another factor behind the growth in shared work environments is due to number of Millennials entering the workforce, compared to the number of “Baby Boomers,” who are retiring.
Seven years ago, “Baby Boomers” were the predominant worker, but this is slowing starting to change. Within the next three years, Millennials will simply outnumber “Baby Boomers,” and within the next eight years make up approximately 75% of the entire workforce.
When it comes to Millennials, since they grew up with technology and have easily adapted to mobile technologies, their idea of work environments is completely different from “Baby Boomers.” Millennials are perfectly content at working in an open, shared area alongside other individuals.
They would rather work in this type of environment than behind closed office doors or semi-private cubicles. Part of the reason they enjoy the open work environment is it gives them the opportunity to co-mingle with other people from other types of businesses and industries, often opening up new opportunities for collaborative projects. When privacy is desired, most shared offices do provide access to private rooms of various sizes.
Another reason Millennials are causing a surge in shared office rentals is they like the flexibility it provides. While assigned work areas are offered and available, they do not want to be tied to a specific workstation or desk, and actually like being able to choose from whatever space is currently available.
Aside from Millennials, another factor increasing growth in shared office spaces are changes at major corporations. Many bigger firms are starting to explore different types of working environments for remote employees. Instead of having employees work from a home-office, corporations are discovering it is better to have smaller groups of employees work in a shared office environment because this increases productivity and workplace collaboration.
Furthermore, co-working spaces are a more cost-effective option for bigger companies to expand into new markets, without the risks of long-term rentals or leases. As such, it allows larger firms the opportunity to set up a local branch office much more quickly, yet without all the added costs of office equipment, furniture, and so on.
To learn more about shared office rentals, meeting and conference rooms, event hosting, and virtual office solutions for your business, please feel free to contact iQ Office Suites at 416.238.1111 today!