Technology and innovation have been the drivers of our mind-boggling evolution over the past few decades. These have transformed how we work, conduct business, study, and shop. The onset of the COVID-19 pandemic, too, has deeply impacted our lifestyles. One of the major changes we have seen is in the way we work and attend school or college.
Through the better part of 2020 and 2021, many of us remained homebound due to stay-at-home restrictions and the need for social distancing. This accelerated the already growing trend of remote working or distance working. As a result, our homes doubled up as working spaces. Moreover, with the reopening of the economy, many businesses realised the advantages that flexible working spaces and remote working brought to the business.
Shared office spaces, co-working systems, flexible working schedules etc., have significantly lowered the overhead and working costs of running the business. Businesses are able to make the best of their resources and cut down on energy and utility bills. It helps employees save money, time, and effort commuting to and from work. Flexible workspaces and co-working spaces are a win-win proposition for any business enterprise.
But what is the difference between the Flexible Working Space vs Co-Working Space?
How does this development impact you as a real estate investor? Let’s take a look.
All about Flexible Working Spaces
Flexible working spaces are regular offices that have changed their system of utilising resources. Like regular offices, these are spaces owned or leased by the business organisation. In a traditional office set-up, different departments and employees hold designated desks and spaces to work from. In a flexible work set-up, employees need to book working spaces in advance and for a set number of hours or days. No team or employee has a designated desk or space, but teams can book resources or spaces to work together for the duration of a project. Once this is done, the space is reassigned to other employees or teams that have booked these resources. Flexible workspaces can be of different types.
Hotdesking is a system in which individual employees can work from any available desk or space and use it for work hours. By the end of the day, they pack away their belongings. There is no need for reservation, but no fixed desk or space is reserved for any employee either.
Desk hoteling is another way in which flexible workspaces function. In this, an individual or team can reserve a space for the length of a project. For example, the marketing team may reserve a section of the office and the conference room or AV set-up to help them work on a particular presentation. Once the reserved time is up, these are reassigned to other teams or employees that have booked the resources.
All about co-working spaces
Unlike traditional offices, co-working spaces are privately owned spaces that are rented or leased out to professionals who wish to avail of a professional working environment but want to avoid the hassles that come with commuting to work. A co-working space owner or manager has a complete work set up with resources like WiFi, printers, conferencing facilities, AV systems, fax, cafeteria, coffee carts, etc. They maintain the work premises and are responsible for the housekeeping and utilities. Professionals can book these shared offices near their homes or at a convenient place and work from them. They may be charged on an hourly or daily basis for these spaces.
Co-working spaces provide entrepreneurs and professionals with a formal work environment with the conveniences that traditional offices provide without the need to travel long distances. Those who find home environments distracting or casual to be able to work can opt for co-working spaces. These are also good for creative teams that require office resources without having to go through the hassle of renting individual pieces of equipment.
What does this mean for real estate investors?
The rise of flexible work systems is a boon for businesses and corporations. It reduces the need for office space and optimises resources. On the other hand, co-working spaces are a great opportunity for real estate investors, particularly those looking at commercial spaces. As an investor, you may wish to buy a large office space in an upcoming commercial district and convert it into a co-working space. This can fetch you much more than average rentals but may also require much more effort and investment into building the interiors and setting up the office infrastructure.
More and more professionals and entrepreneurs are now opting to work from co-working spaces, and the returns on your investment are likely to grow as this trend takes off. Picking the ideal location, tying up with the right vendors, and focussing on service delivery may well be the key to success.
Final Thoughts
Flexible and co-working spaces offer different options for individuals and businesses looking for a space to work. Flexible working spaces provide more freedom and flexibility, while co-working spaces offer a sense of community and networking opportunities. Ultimately, the choice depends on individual needs and preferences.
