The utilisation rate has risen to 1.2 members per desk.
The average occupancy has risen to 1.2 members per desk. Before calculating the average, we evaluated the relationship within each individual coworking space. There are now 12 square metres (130 ft2) available per member, which is a little less than last year. The area per desk has been slightly increased to 11 square metres (120 ft2).
Private offices are thriving, particularly in megacities.
Surprisingly, the continued increase in the share of private offices within coworking spaces (25 percent, +6 percent) supports this trend. If private offices take up more space, the number of members per desk increases. Desks in these offices do not appear to be used by a single person, but rather by a group of people.
If you include the coffee and lounge areas, the relative share of dedicated meeting and event spaces has decreased from the previous year, while open workspaces continue to account for half the space of an average coworking space. However, as coworking spaces grow in size, open workspaces are more likely to be replaced by private offices. They are not necessarily shrinking, but their share of space is decreasing in comparison to the remaining spaces.
Do coworking spaces still exist in the absence of private offices?
Yes! A quarter of coworking spaces completely avoid them. However, a year ago, this figure was nearly 40% of all coworking spaces.
Are coworking spaces that primarily house private offices still considered coworking spaces?
This is not solely dependent on the layout. Coworking would also be impossible in an open workspace devoid of people. Private areas can make work easier temporarily, which is why the vast majority of coworking spaces provide more than just open workspaces. Furthermore, communication and coworking do not take place solely in workspaces or through direct conversations. It also occurs on smartphones and computers, as well as outside of the office. Face-to-face interactions, on the other hand, greatly promote social interaction. They, in particular, make it easier to get to know others. Every tenth coworking space now contains at least 60% private offices. Their walls can stifle collaboration and thus jeopardise the conditions that promote coworking and new encounters.
Revenue from private offices is increasing faster than space.
Private offices now account for more than a quarter of total revenue (27 percent, +9pp). As a result, their revenue has increased faster than their floor space. In contrast, simple desk rental has declined (32%, -4pp), as have membership packages that include multiple services at the same time (10 percent , -8pp).
Rent is still by far the most expensive item.
Rent remains the most expensive expense for coworking spaces, accounting for just under 40% of their spending. Its share fell slightly from the previous year, presumably due to the increased popularity of management contracts and joint ventures with landlords, particularly among new coworking spaces. However, 70% of coworking spaces that rent their space spend 45 percent of their total budget on rent.
The cost of employees is increasing.
Staff salaries and operating costs account for 17% of total expenses. Larger coworking spaces have higher proportionate staff costs simply because they employ more people, but their percentage share of operating costs is lower. Coworking spaces that own their own space, on the other hand, have the highest operating costs in comparison.