What is the state of coworking spaces two years after the pandemic? 79% of respondents described their current business trends as good or satisfactory. The proportion of Europeans who rated their current situation as “good” doubled over the previous year.
Two-thirds (63%) of coworking spaces that responded to the survey reported growth in membership during the fourth quarter of 2021. They reported half of their revenue growth and just as often, increased profitability.
The current business climate in North America was even more favorable.
The Corona pandemic continues its influence
The differences in responses between North America and Europe can be attributed to the differing distributions and regulations due the corona variants.
We did not cover the details of the pandemic or legal requirements. However, Europe as a whole took more severe measures to combat the Corona virus during the survey than North America. This in turn had an impact on coworking spaces.
Respondents in Europe mentioned compulsory home office rules and the ban for large events significantly more often than those in North America. In North America, however, measures were limited to wearing a mask at work.
Globally, however, the “fear of Coronavirus” was the most prominent list of major economic limitations. Around 25% of companies responding also felt that they were economically limited due to a lack of planning certainty.
Coworking spaces that are more profitable than they are
Comparatively to pre-pandemic business trends surveys the percentage of profit-making spaces has dropped dramatically. In 2021, coworking spaces made more losses than they made profits globally. Surprisingly, small chains with just 2-4 locations were less at risk than those with one or more locations. North America had a higher number of spaces that could generate profit than Europe.
Flexible workspaces in high demand are still affected by pandemic conditions. Due to the continued high volume of virtual meetings, meeting spaces were in high demand at the end of the last year. In North America, individual offices ranked first while European cities saw strong demand for team offices.
There was mixed demand for ‘hot desks. It was much higher than the global average in Europe. On the other hand, event rooms in North America were much more popular.
It is impossible to determine the revenue from general demand as it depends on many other factors, such as availability and cost. Flexible workspace providers cite private offices as their most important source for revenue. The second most important source of revenue was renting desk space in open areas. Meeting spaces came in third. Event spaces were cited as the fourth-most important source of revenue.
Currently, more than a third are available
Because coworking spaces have different business models, it is difficult to compare their occupancy rates. Also, we asked them based on their maximum capacities, what percentage of new members and users they would allow until they are full.
This means that the average occupancy rate for companies surveyed was 60%. We see very little difference between continents.
Europe had stricter Corona regulations that meant that only 9% of the available capacity could be offered and was therefore blocked. North America had a blockage rate of 2%. However, the pandemic situation had already prompted changes to the business model, so areas that could have been blocked were presumably already being repurposed.
The occupancy rate is generally higher for spaces that have been around for a longer time. The size and variety of coworking spaces also influenced the occupancy rate. This rate was not higher than 65% in any group, even the oldest or largest.
Outlook: The positive business trends in 2022 continues
The majority of operators of flexible workspaces that were surveyed felt positive about 2022’s start. Compared to the previous months expectations were less optimistic, especially in Europe. The Omicron wave had just begun to increase after the Delta wave reached its peak.
However, overall, the forecasts for individual points showed a more optimistic picture than the review of the previous months.
75% of respondents anticipated an increase in members within the next 3 months. 60% predicted higher revenues and better profitability. Over 20% of coworking spaces had already begun planning for expansions in the new year.
The majority of operators who use flexible workspaces are happy
Most operators were satisfied with their professional lives. The North American respondents were slightly happier than their European counterparts.
Signature Workspace offers fully-equipped solutions in Tampa with two locations on Dale Mabry and Northdale and Clearwater. You can use shared workspaces, private office spaces, conference rooms as you need them, virtual offices, and many other options all equipped with everything you need from furniture to wireless Internet. This is an affordable and viable option for many companies. Contact us to learn more about workspace business trends and where to find the best rentable workspaces. However, the best possible bet is to contact Signature Workspace in Tampa and see what our clients have to say!