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Why big corporations are moving into coworking spaces?
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Why big corporations are moving into coworking spaces

Some of the world’s largest corporations are flocking to coworking spaces in search of talent, potential acquisitions and flexible office setups.

Around 10 years ago coworking spaces began opening up to offer affordable office space solutions to startups and freelancers. Recently much larger tech firms have been jumping in. Over the past year, larger companies are now looking for the benefits of locating in these shared office environments. As a result, big media conglomerates and newly crowned tech giants have been moving employees to coworking and incubator spaces.

These spaces are set up so that Fortune 500 tech companies now have:
  • better access to innovators, innovations, talent
  • reduced real estate costs
Large corporations are partnering with coworking spaces to support innovation and idea exchanges. Tech giants such as Verizon, IBM and Microsoft are now testing coworking spaces to be near innovative startups. If you are an up-and-coming startup or small business looking to get noticed, there is no better place to make those connections happen.

Integrating incubators

One trend coming out of coworking spaces, is integrating incubators into their business development strategies. By offering space and an environment with resources, they are able to cater and retain members who are launching startups. Corporations are forming partnerships with coworking spaces. Thereby making it easier for them to stay on top of technological innovations and top talent. They want to keep an ear to the ground when it comes to potential disruptions in their industry, and they need to closely monitor potential acquisition targets.

Renting space in coworking spaces can help them check all of the boxes:
  • Attract top talent
  • Monitor competition
  • Find acquisition targets

Corporate use of flexible offices is massive and growing

A recent survey by the commercial brokerage firm CBRE indicates that 44% of corporations are already using some type of flexible open platform office solution. Data from the survey, which tracks and covers leaders of corporate real estate departments for major corporations, found that they expect their usage and demand for flexible office space will continue to increase over the next few years.

65% of the companies expect to use coworking as part of their office portfolio in the Americas by 2020. JLL,  a major brokerage firm, predicts that by 2030 up to 30% of all office space will be, in some form, flexible or have an open layout design. The report cited a wide variety of factors for switching to the coworking office space approach. From financial incentives to a need to spur collaboration and innovation.

The demand for shared office coworking spaces is surging around the world. With several mega corporates over this past year deciding to jump into the game.

A number of factors drive the demand for co-working

Telecommuting work keeps growing. And independent workers — contractors, developers, freelancers and the like — make up a bigger part of the of the growing labor force. Corporations are able to see opportunities in the growing coworking space trend. They are able to tap into the local innovation and recruit top talent by partnering with coworking spaces and forming partnerships to provide startups with resources. While at the same time keeping their eyes open to new and potentially disruptive technologies that could either be competitive or useful as an acquisition target.

Article by Andrew Broadbent

Founder, Digital Media Consultant and Entrepreneur

Source: entrepreneur.com

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