Thanks to very strong consumer demand, the coworking industry has exploded over the last decade, and 2019 has been no exception. As of September 2019, coworking spaces accounted for 93.2 million square feet, making up 1.7 percent of office space overall in the leading 50 US markets.
As this market continues to grow and evolve with leaders such as Venture X at the forefront, there are three emerging trends to keep an eye on for 2020 and going forward.
More growth in suburban spaces
At the start of this concept, many brands largely focused their expansion efforts on metropolitan and urban areas with dense populations. Because of this focus, the traditional top commercial real estate markets--San Francisco; Boston; Chicago; Washington, DC; Los Angeles and New York--are now home to the about 47 percent of total coworking space in the country.
However, the suburbs are now seeing more shared workspace come into their markets thanks to more workers in those areas, especially those who work at home or for tech companies. Currently, the biggest share of suburban coworking spaces are in Las Vegas, Miami and West Palm Beach, but more expansion into the these types of areas is expected in 2020 as brands offer more franchise opportunities in the suburbs to foster growth.
Increased use of flexible workspaces and shared offices
Coworking spaces have been growing larger each year while serving more members. A study published in Deskmag found that in 2018, the typical coworking space occupancy was now at 1.2 members for each desk, indicating coworking businesses are moving toward fitting more staff into the same space.
At the same time, there was a 25 percent boost in private offices taking over common areas and event spaces, which indicates businesses are looking for variable settings. Shared workspace owners have always worked to maximize profit per square foot, and this will continue to be a trend in 2020.
More profit potential and diversification in coworking spaces
Since coworking has now established itself as a proven business models, many brands have moved onto the next phase: increasing profits and diversifying their revenue streams. After a flexible workspace first opens its door, the main revenue source is membership package, fees and equipment rental. However, many coworking franchise business brands have realized the demand is wide open, paving the way to increase revenue via diversification.
In addition, many coworking brands will offer support specific to an industry, especially as more and more businesses focus their work on meeting the demand for connected devices.
As the coworking space market expands and grows, so do the brands within it. Leaders such as Venture X will increasingly be seeking qualified entrepreneurs for their franchise opportunities in this exciting and evolving industry.
