How do coworking offices make money?
According to research published by DeskMag & Socialworkplaces.com, the largest chunk of a coworking space’s income derives from renting out individual workstations; the biggest expense is the cost of leasing the location.
In the past, office space was arguably one of the least interesting facets of the property sector. The majority of workspaces looked something akin to the office in The Office, devoid of any personality and outdated design-wise by at least a decade.
Then serviced offices boomed and the coworking concept came along, disrupting the market by offering very flexible agreements, transparent pricing and raising occupier expectations tenfold. The noun ‘office’ doesn’t really seem applicable to many spaces anymore; in fact, lots of providers now use words like ‘community’ and ‘hub’ to describe their locations.
With so much being invested in workspace design, perks and events, how do these coworking spaces make money- where does it come from?
Coworking Spaces: Income & Expenditure
*Statistics from The Global Coworking Survey 2015-16, chart made on Canva
And if you were wondering about the profitability of coworking spaces, according to the survey, 39% are profitable, 54% broke even and 7% are non-profitable.