How Shared Office Space Revolutionizes the Way We Work

Office SpaceFrom free coffee and beer to a chance of meeting new people, shared office spaces are redefining the landscape for the proverbial desk job.

Co-working spaces are not an uncommon idea, but startup company WeWork helped propel their status and turn them into a booming sector. By initially attracting freelancers and workers from startup companies, those on the established corporate world have begun to take notice.

Corporate Domination?

Bloomberg News reported on how large-scale companies such as General Electric, KPMG, Merck, and The Guardian have jumped aboard the shared-office bandwagon.

The youthful vibe and fresh ideas from young professionals drew the attention of these companies, which have existed for an average of 155 years, so they can pick up on new concepts for business development.

As the demand for shared offices seemingly become higher, it is natural that companies plan to expand their footprints. For instance, WeWork secured $1 billion of capital from investors to fund its worldwide expansion.

Meanwhile, the company also expects to record the same amount in 2017, representing its revenue run-rate for that year, according to Reuters, citing WeWork CEO Adam Neumann. The company’s annual sales could hit $12 billion if it will be able to serve 1 million people in the U.S., which is doable, Neumann added.

Cutting costs

It is not just the social benefits that lured these companies to try co-working spaces. As the cost of rents go upward, most companies are now seeking to use the shared-office setup to save on resources. Julie Whelan, CBRE head of occupier research, believes that it could become an accepted norm among offices in the future.

And that could happen any time soon. CBRE said each worker’s office space provided by a typical U.S. company requires over $12,000 per year. In light of this, co-working companies can only be more than glad to welcome people who are looking to split costs — and possibly make a new friend.