What are Co-Working Centers - Examples and Prices, Filling and Differences
What is a coworking center (zone, office, workspace). How much does co-working cost and what makes it different. Examples and features.
How did coworking begin?
Before answering the question of what coworking is, you need to study the history of this phenomenon.
In 2005, a new word appeared on the labor market - “ coworking ”, which literally means “ collective, joint work ”. This concept came into circulation thanks to a young programmer from San Francisco, Brad Newberg . He organized the first semblance of coworking space at the Spiral Muse feminist community home .
The concept was to organize a new work format without a strict schedule, but with an appropriate atmosphere; without unjustified costs, but with the condition of well-equipped workplaces; without meaningless activities, but with informal and effective trainings for development and personal growth.
All this "luxury" was available for a nominal fee. Therefore, due to its convenience and accessibility, the coworking zone is rapidly gaining popularity around the world.
Naturally, the first "turnovers" began in the US labor market. According to the statistics of the company « of Cushman & Wakefield », specializing in transactions with commercial real estate, from 2005 to 2018, the area for kovorkigna increased to 464.500 square meters .
By the end of 2018 - beginning of 2019, this figure increased by another 278,700 square meters. Moreover, the specialists of this company are confident that such a working space will increase further.
Three years later, in 2008, coworking moved from the West to the territory of the CIS countries and was introduced by Alexey Glazkov, the founder of the domestic coworking movement. The first coworking office "Tower" was opened in Chelyabinsk, but a couple of months later similar centers began to open in Moscow.
The turning point for the movement was 2014-2016, when the economic crisis contributed to a sharp increase in demand for rental sites for work. It was then that the number of coworking centers more than doubled. Again, according to Cushman & Wakefield , in the first half of 2019, the Russian capital accounted for about 90% of flexible workspaces across the country.
At the same time, JLL researchers argue that the coworking segment is only gaining popularity in Russia. Therefore, in the next two to three years in all CIS countries, this business niche is expected to grow by 30-40% of new coworking spaces. So, now this is no longer a gathering of enthusiasts with good working conditions, but a real trend in the office real estate market, which is gaining momentum every year.
Today Moscow is in the TOP-10 cities in Europe in terms of the number of coworking zones.
The capital ranks seventh in the ranking and has about 150 sites in the catalog, the average area of which is 1700 squares. St. Petersburg is another leader in terms of the number of coworking spaces.
The total number of sublease centers in the regions reaches 280. The cities in the top in terms of the presence of operating coworking spaces are Yekaterinburg, Novosibirsk, Samara and Kazan .
What is coworking in simple words and what is it for
what is coworking
What is coworking - translated from English, the term co-working means working together or working together.
Coworking is a special flexible approach to organizing the work process of people of various specializations in one office space, based on the formation of communities of residents.
In simple terms, coworking is suitable for creative professionals and freelancers who want to work in an office setting, but do not want to overpay for rent. Coworking is a cross between office and work from home.
The plus is that no one distracts from loved ones, there is no temptation to turn on the TV or lie down on the sofa, while you do not have managers and you can work in a comfortable schedule.
According to VTsIOM (All-Russian Public Opinion Research Center), every tenth Russian defines himself as a freelancer or self-employed, and another quarter of the country's residents would like to switch to a remote work format. People are attracted by the possible increase in income, independence from bosses and freedom of action, as well as the ability to independently build a work schedule.
Speaking in simple words about what a coworking center is and what it is for, we note: it is a well- equipped office that unites under one roof people who want to work productively, think creatively, develop and achieve their goals, regardless of their superiors.
At the same time, copywriters, designers, programmers, managers, marketers and any other specialists who have rented space can work in the same room. Also, coworking is in demand among small businesses, for which it is expensive and impractical to rent a separate space.
The main essence of such a " creative " association of specialists is to create an atmosphere for productive work, creative thinking and a friendly environment.
What is included in the services of coworking centers
what is a coworking center
The key service is the rental of workplaces, which includes the use of high-speed Internet, stationery and office equipment. It is up to the landlord to use the meeting rooms. This may include a monthly fee or be charged separately.
Office equipment - printer, copier, scanner. Computers are not available in all areas, so visitors often bring their laptops.
Availability of drinking water, coffee and tea with cookies.
Of course, depending on the rental price and the equipment of the center, the number of services may vary or be provided for an additional fee. For example, in some places the payment for using the conference room is already included in the price, while in others you need to pay for the service separately.
Based on the experience of foreign entrepreneurs, additional services can be introduced.
For example, the center can provide support services to visitors - legal assistance, courier delivery, bookkeeping, or a personal secretary. Naturally, for an additional fee.
It is also recommended to introduce services that increase the prestige of the coworking office and attract the attention of potential customers. This includes
Availability of parking spaces;
24/7 access and night-time rentals;
Lockers for personal belongings with personal keys;
Fitness center and entertainment;
Shower, dining room and more.
Coworking rental prices
The cost of a coworking space is made up of several factors - the main ones are:
City - in the capital and St. Petersburg prices are higher than in the regions.
Location - the farther from the center, the cheaper the rent.
Equipment of the premises with equipment.
Exterior of the building - the new coworking spaces are more attractive and more expensive than those located in the houses of the old foundation.
Availability of additional services.
Rental duration - the longer the rental period, the cheaper it is for customers to pay for one day in the coworking space.
Morning and night hours are usually cheaper, daytime and evening hours are the busiest and more expensive.
Hourly cost or payment for a specific period - day, week or month.
The average cost of a coworking space in Russia is 15,000 rubles per month, but for good conditions the cost will be over 22,000 per month per person.
When looking for a job on the Internet, one may come across the myth that “coworking is unreasonably expensive”.
In order not to be verbose, you just need to carry out the calculations.
According to the legislation, one employee must have 6 square meters of working space. Not to mention that vital structures are also needed - at least a kitchen and a bathroom. A team of 5 employees already needs 30 square meters.
We monitor the average cost for business centers in the capital, and we understand that for 1 sq. m. we need to pay about $ 35 per month. As a result, the figure reaches almost $ 1,050 per month for such a small team of specialists.
Maintenance services were not included in this amount either. According to the metropolitan rates, you will have to pay about $ 2 more per 1 sq. m.
We consider further. When renting an office in a business center, it is unlikely that you will be offered a fully equipped room with furniture, internet, computer and organizational equipment, office supplies, not to mention meeting rooms and personal growth events.
Furnishing an office from scratch will cost the employer from $ 200 per person. And household expenses in the form of the Internet, office supplies, tea and coffee will cost from $ 25 per month per person. As a result, we get a tidy sum, which is not always available at the initial stage of doing business.
Consider renting ready-made places in a co-working center, where everything you need for work has already been thought out to the smallest detail.
On average, the price tag for a coworking job costs $ 300 per month per person. You will not need to bear any additional waste. Still sure it's expensive?
Prices vary depending on the conditions, the area of the city, the services offered and the size of the premises.
And here are some more examples of prices for coworking:
Attention! For this amount you get :
High-quality and stylishly equipped coworking space with workplaces;
Fully furnished office with all auxiliary premises (kitchen, bathroom, reception, server room, meeting rooms);
Service and assistance of the staff working directly in the coworking space;
Not attachment to a specific situation, since it is possible to change the workplace at least every month due to a short-term coworking contract;
New acquaintances and connections, communication with colleagues and like-minded people, the opportunity to get help and support from other specialists.
After such arguments, the choice of anyone looking for a space to work will be obvious.
For whom the services of coworking centers are relevant
Clients in these jobs include freelancers, business travelers, travelers, startups, aspiring entrepreneurs, employees of small companies, and a short-term project team. In this case, the specialization of a person does not matter.
Even seamstresses, architects, designers, carpenters can work together on the territory of the office, if they are required to draw up projects in a productive atmosphere.
In general, co-working centers were created for those who:
Works remotely, but cannot concentrate on tasks at home;
Loves living meaning and meeting interesting, creative and productive people;
It is financially difficult to pay for the rent of a personal office or an office in a business center;
We decided to experiment in running our own business.
Unfortunately, for those who are used to making money in complete silence or loneliness, as well as those who are distracted by the presence of a large number of strangers, a coworking workstation is not suitable.
How to organize a coworking space and what should be there
If you are considering starting a coworking business, there are a few things you need to know.
The main thing that is needed is to rent or purchase suitable real estate for jobs. 85% of coworking entrepreneurs arrange space according to the Open Space principle (open space without divisions into offices).
Premises focused on teamwork of specialists, first of all, should have a convenient location. It is advisable to choose the central districts of the city, not far from the metro station or bus stops.
It will also be better if the infrastructure around the chosen office is well developed - grocery stores, banks, post office, coffee shops and cafes. In other words, what you may need for work and daily activities.
Even if you could not find an office space suitable for the above criteria, consider, perhaps, there are abandoned libraries, schools, factories or enterprises nearby.
Their spacious and bright spaces are perfect for creating a coworking space. Such buildings and organizations can be repaired and refurbished very quickly and inexpensively.
It is important to understand that coworking is a fast growing business that is in demand. When developing your coworking business plan , you need to monitor existing centers, track what competitors offer, and what will be "new" today.
Fresh ideas, good service and reasonable price are what our clients appreciate.
Therefore, it is important for entrepreneurs to think over the coworking zone to the smallest detail.
At a minimum, the following requirements must be met, in addition to renting (buying) and refurbishing suitable premises:
Purchase high-quality computer and organizational equipment, office supplies (in some cases, it is possible to purchase only office equipment when the project concept stipulates that employees bring their laptops themselves);
Conduct high-speed Internet to several Wi-Fi access points in order to evenly distribute the load from users;
Zoning the premises for organizing workplaces;
Equip conference rooms and meeting rooms so that tenants, if necessary, can collect meetings and organize events;
Provide areas for rest and snacks, as well as a bathroom. It is advisable to equip the office with a cooler with hot and cold drinking water, a vending machine with coffee and biscuits;
To plan a program of additional education for clients of coworking places - lectures, trainings and master classes, moreover, preferably from leading coaches and specialists.
Installing a water cooler, buying food and utensils for common use.
Another important aspect is the selection of personnel for servicing the center and solving common issues. The “ minimum equipment ” for employees should include an administrator or manager, accountant, two or three office managers, a development specialist, an advertiser, a marketer, a technician for equipment maintenance, and a cleaner.
In exchange for such a wide range of services for organizing work, tenants pay a set fee. The cost of a coworking space can be monthly, yearly, or even hourly.
But, as is usually the case in any business, "if you take it in bulk, I'll give it back cheaper." Therefore, for those clients who are planning a long-term lease, it is advisable to introduce a discount on the lease of a place.
When starting a business in this area, be prepared that you will not be able to make quick money. To recoup the investment and make a profit, you need to spend about one or two years.
Advantages and disadvantages of working in a coworking network
Benefits of working in a shared space :
You can rent a place in a coworking space inexpensively. It will be much less expensive than standard offices and classrooms;
Utilities and communication charges are included in the rental price;
There are no fixed lease terms, you yourself determine how long you will work in the co-working center - an hour, a month, a quarter or a year;
Opportunity to improve your qualifications and improve as a specialist with the help of trainings conducted on the basis of a coworking office;
Communication with like-minded people and specialists in other fields, helping each other, sharing experience, establishing new partnerships;
Availability of all the machinery and equipment necessary for office work;
Not distracted by children and pets;
The centers are obligatory to enter into an agreement with clients, so you will not be asked to vacate the premises at any time.
You need to carefully approach the choice of a center, study all kinds of offers on the market. It is especially important to study what coworking offers, what services are included, for which you need to pay separately;
Some co-working provide for a system of penalties for violations by tenants. This aspect is also important to study carefully;
It is worth coming in person and seeing the proposed places. There have been cases when a proposal on the Internet sounds like “comfortable and spacious workplaces with all the amenities in the city center”, but in reality it is a cramped room in which specialists sit huddled together;
70% of coworking spaces are located in the center of any city. But the road still takes time, while at home you can start work immediately after waking up;
Compared to such an abundance of advantages of working in a co-working center, the disadvantages do not seem significant. And if you approach the choice of a workplace in an open coworking in detail and responsibly, then you may not encounter a single minus at all. We recommend that you look at the reviews on the Internet in advance or consult with experienced acquaintances in this field.
Coworking: office of the future
The considered sphere of organizing workspaces is gaining momentum every day. Moreover, this format has already gone beyond its limits, has occupied a niche in the hotel business and has entered the premium segment. In Paris, it opened the first coworking hotel «BOB», which stands for « Business on Discussion Board » ( Place of business) .
The hotel invites freelancers from all over the world to come on a business trip in a 1950s atmosphere with a vibrant Parisian accent. The premises of the "BOB Hotel" are designed to stimulate the working and creative process of its guests, to program them for new goals and discoveries.
Therefore, speaking what a coworking hotel is, we can say that it is a real office of the future, in which it is possible not only to work and progress, but also to relax and enjoy life. This format is not yet popular in Russia, but, perhaps, it is you who, reading this article, will be inspired to implement such a bold and useful idea.