We often hear and see the Real Estate industry and operators of flexible workspaces stress that they “aren’t coworking.” They’re offering shared workspace, proworking, workspace as a service, flexible workspace, serviced office, or a variety of other descriptors.
The workspace industry is abuzz with conversations about what to call itself.
But there’s an issue that we, as a whole, are overlooking: Customers or as Real Estate calls them (Occupiers) searching for a coworking space are generally searching on google for specific terms around “coworking ” or the experience that Coworking has brought to the sector. These are the only people we should be focused on when it comes to industry semantics.
True Coworking
The challenge is that coworking typically describes something that happens inside shared workspace. According to John Williams, Head of Marketing at the Instant Group, the term “coworking” is widely used to describe the sector, but the term describes one aspect of the flexible workspace industry. He explains:
“The coworking term has come about because it is so fashionable. But coworking in its truest sense is when you’re sitting next to someone you don’t know from a different company and you’re all startups or one man bands. The reality is the coworking model is very hard to make pay.”
He added that “everyone — WeWork included — is living off the dream of coworking when in actual fact they’re providing serviced offices.”
Aren’t people looking for an experience that encompasses coworking (desk in shared space in addition to a suite of different services and opportunities) that goes beyond serviced offices.
But are customers searching for “serviced offices?” Most are not privy to industry terms, such as flexible workspace, proworking and workspace as a service.
As Williams points out, coworking is, as industry insiders know, a descriptor—an umbrella term that includes and overlaps with a growing number of models and approaches to flexible workspace. To assume that every space is a coworking space is to overlook the complexity and nuance of this industry.
These nuances are critical and what give the different providers their differentiation and USP that make them stand apart from one another and the serviced office offering.
To the general public however, it’s largely all “coworking.”
“Coworking” in the Press
There’s also confusion around “coworking” within real estate circles and the press. As a recent Propmodo article points out, coworking does not just mean coworking:
“The market for co-working [sic] has evolved over time to encapsulate a number of different services – this now includes serviced offices / executive suites and hybrid spaces (incorporating both private office space and co-working) all coming under the broader umbrella of flex space. Co-working has been growing relatively fast across the US at 10%+ each year but is in fact hybrid space that has been expanding more quickly at 20%+. The vast majority of WeWork’s space, for example, is made up of hybrid space NOT co-working which makes up single digit % of total desk space in most of the flex space giant’s centers. It is the same for many other providers of flex space.
“The main driver behind the increased popularity of the hybrid office is the agility(flexibility) it offers – choose a private office for a confidential meeting, co-working to collaborate, break-out space to chew the fat, but do so on your terms. But one thing that hybrid space certainly isn’t is pure “co-working” space which is a totally different model altogether. Too often the media reports on the trend for co-working but really it is referring to the growth in supply and increased demand for flex space.”
Coworking Defined
We agree that the thing that defines the workspace of the future is flexibility—or agility.
One definition of coworking includes bringing bright, creative people together to let ideas collide. Whether one is a remote worker, an independent professional, a startup, a corporate employee or anything else, the future of work demands flexible workspace that allows for focused work, creativity, networking, professional development, meetings, collaboration, events, programming, multimedia creation, socializing and more.
Stay true to the Customer
Defining the workspace varieties is helpful to industry insiders, but it doesn’t much help those people looking to find a space and community to work in. For many of these people, coworking is about connecting with a community of people, not simply renting a desk and wifi, it’s about coworking.
From our perspective, the focus should not be on trying to find consensus about what to call the industry, but on serving people looking for a workspace and those already working in shared spaces.
We don’t need to spend any more time naming our industry, we need to spend our time serving and creating innovative solutions for the customers.
To contribute to the conversation about coworking and the evolving workspace industry, join us at GCUC UK in London, on 23-24 September. Book your ticket.
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