Has the Sun Set on Co-working Space?

Has the Sun Set on Co-working Space?

With the closure of Sunshine Suites, one of the first shared workspace facilities in New York City, one may wonder if the co-working party is over and others will follow suit. This author doesn’t think so, and neither do the remaining key players in the market. WeWork just raised in excess of a quarter billion dollars to continue its global expansion, and new players enter the market on a regular basis.

The business model caters significantly to young, start-up companies that have a need for meeting space and other amenities but can’t afford to pay for the square footage needed to have their own dedicated space. Further, the communal nature of co-working space appeals to the millennial generation who prefer open, shared spaces, as opposed to small, private offices. We are even beginning to see co-living spaces, but that is a subject for another time.

It seems the next step in the evolution of co-working space is the “specialization” of work spaces; that is, tailoring spaces to better suit specific industries, or unique atmospheres that appeal to certain demographics. For example, BarWorks offers a barroom setup, with separate, private space as needed. Of course, there is a functioning bar at the tenant’s disposal, offering discounted alcohol and free soft drinks and coffee. Care to start your day with yoga or meditation? You can find co-working spaces that offer this as part of your membership!

In short, the sun will continue to shine brightly on the co-working industry for quite some time. The reflections may just look a bit different. Get ready for Co-working 2.0.

Author: Al Erdmann, CPA, CGMA | [email protected]

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