Global Shared office Spaces Market - Growth, Trends, COVID 19 Impact and Forecasts (2022 - 2027)

Market Overview

The global shared office spaces market or the coworking spaces market consists of coworking space rental revenues earned by entities (organizations, sole traders, and partnerships) that provide coworking workspaces on rent or lease. Unlike traditional office rental, the cost of renting coworking workspaces usually covers the use of related services/equipment such as office chairs and desks Internet/Wi-Fi connection, hardware, software, and others. The industry includes businesses that offer non-residential structures with amenities and facilities on a flexible rental basis. The coworking spaces market is majorly determined by the increase in the number of start-ups globally. The growth is backed by the expansion of internet space, exposure to the knowledge of entrepreneurship outside the boundaries of the country, and improved literacy rates.

The increase in the number of people working from home or remotely owing to the COVID-19 lockdown limits the growth of the market. For instance, in March 2020, many companies working from home owing to the COVID-19 pandemic, operators of coworking spaces have seen an almost 50% decline in footfalls. Furthermore, according to industry sources, in April 2020, the number of people working remotely has grown by 44% in the last five years, with 7 million people (3.4% of the population) were working remotely in the USA alone before the arrival of COVID-19. 

Scope of the Report

A shared workspace has one occupant using designated office space for a specific period. When the time is over, the same workspace is given to some other occupant, rather than leaving it idle. Global shared office spaces market is segmented By Business Type (Conventional co-working spaces, Corporate co-working spaces, and Other), By End-Use (Finance, Legal Services, Marketing, Real Estate, Technology, Consulting Services, and Other), and By User (Enterprises, Freelancer, Other) By Geography (North America, Asia Pacific, Middle East & Africa, Europe and Rest of the world). The report offers market size and market forecasts for Global shared office spaces market in Value (USD Billion).

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Key Market Trends

Increase in remote working globally

The COVID pandemic has led to a major paradigm shift in the shared office spaces market globally. More employees are working remotely and are looking for co-working and shared office spaces for better productivity. Demand is mainly coming from larger organizations and enterprises looking to decentralize their workforces into smaller branch offices and remote teams into private flex offices. That demand will be led primarily by private offices, followed by dedicated desks, while hot desks and meeting rooms (for non-members) will take the longest to fully recover. In the long run, all offices will potentially turn into flexible, on-demand spaces and in spite of the challenges faced by many operators in 2020, the potential for the coworking industry to grow and evolve has never been higher.

Before 2020, the office space provider market was more homogenous, owned by a few big companies. Today, the market is seeing new businesses enter the market, resulting in more competitive offerings and niche office space services. Inexpensive offices are becoming more prevalent in certain cities, while demand is pushing prices up in other areas. One statistic shows that the average monthly rate for a coworking space is highest in Washington D.C. (at USD 843), while the lowest is in Houston (USD 220).

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