Are co-working spaces going to benefit from the ‘attack’ on offices?

We are now several months into a major global health crisis and nobody can say for sure when a return to traditional office spaces will be possible. While the exodus from offices occurred suddenly and without warning, it’s likely that the return to the workplace will happen much more gradually and with some ‘pandemic-proofing’ changes.

Some companies, such as Facebook, have chosen to bring back essential on-site staff whose jobs are more difficult to perform remotely, while allowing the rest of the workforce to continue working from home until at least next year. Others, like Fujitsu, are planning to drastically reduce the number of employees that work in offices in the long-term, opting for a hot-desking situation instead of the traditional workplace set-up.

For now, it looks as though a hybrid working arrangement could become the norm, having a small set of employees in the workplace while others remain home, or allowing different employees to visit the office on certain days of the week. Both options present a clear opportunity for co-working space providers.

While the sustainability of the co-working model may have been brought into question last year during the entire WeWork saga, the sector wasn’t helped by the pandemic. A report in June said that the global co-working spaces market is expected to decline from $9.27bn in 2019 to $8.24bn in 2020, due to the economic slowdown caused by Covid-19 and the measures to contain its spread.

But now, as economies reopen and businesses begin to think about the future, could co-working spaces be the answer for individuals or companies?

A demand for hybrid working

Many people have adapted well to remote working, saving time on long commutes and having more time to spend with family. In April, IBM conducted a survey of 25,000 adults in the US about how Covid-19 has impacted their perspectives on a number of issues, including the return to work. More than half (54pc) said that they would prefer to primarily work remotely if business returns to what we once considered normal, however the rest would still like to return to something resembling the old set-up.

Companies that have begun planning a fully remote future may be alienating this significant cohort of people. The home can be a very stressful place for many if they have to deal with family members or housemates, or have a lack of space for a home office set-up. For that reason, flexible co-working spaces may be the middle ground that some companies need to keep their employees engaged and happy.

Apple Jing Shen, general manager at Dublin co-working space the Tara Building, said that there has been a shift in attitudes towards hybrid working as a result of Covid-19.

“We have had a lot of new enquiries and many of our existing members are looking for more flexible options during the pandemic,” she told Siliconrepublic.com. “In response to that, we have introduced new part-time membership plans, which includes a three-day per week part-time membership plan.

“Since we reopened our doors from the end of June, we have been prepared and expecting more people to choose our facilities as an alternative option to their remote offices over the upcoming months, whilst we continue to support and maintain our existing creative community.”

Andrew Lynch, co-founder of co-working space provider Huckletree, which has a base on Dublin’s Pearse St, agreed that these type of spaces could be a new alternative for many businesses.

“What I think we’re seeing more and more of is the traditional office headquarters coming under attack,” he told Siliconrepublic.com.

“Traditional office set-ups are notorious for making you feel big and small at the same time. Even though you’re surrounded by thousands of people, there’s the false sense of mobility and you end up sticking to your own cubicle with minimal social contact with others.

“We believe, as we have from the start, that smaller curated ecosystems are the sweet spot, because you have the freedom to think, the ability to make meaningful connections and the environments to collaborate productively.”

New health and safety measures

By the nature of the business, co-working spaces see a lot of footfall from a wide variety of people who share the space. To assuage concerns about health and safety, the Tara Building has made some significant changes since it reopened.

Management has reconfigured all of the co-working and breakout spaces to ensure physical distancing is possible at all times and perspex desk dividers have been installed to prevent the spread of infection.

“Each of our members have been gifted a reusable cloth face mask provided by Dublin Craft Collective, a collective of indie artisans and craft-makers located in Dublin. This is to help on their commutes and in communal areas,” Jing Shen said.