Are coworking spaces cost-effective? According to andCards, only 43% of coworking spaces are currently profitable. While that figure may seem low, it's partly due to the fact that the industry is so new and expanding at a rapid rate. However, after two years in operation, more than 70% of all coworking spaces become profitable. Coworking spaces earn most of their income by renting desks (61%).
One in ten spaces earns all their money renting desks. You can also turn your unused commercial real estate into a suitable place for photographers. Many professional photographers need large spaces to set up equipment, invite customers to photo sessions, or take pictures of customer products. A common revenue generation model for a coworking space is when a startup signs a lease for a larger office, then takes responsibility for organizing and managing resources while renting the free space to other interested visitors.
If the coworking space is owned by a private company, then the fee is even higher. For example, if your space can accommodate 40 members and, on average, there are 20 people in your space per day, you have the opportunity to optimize 50% of the unused space. When it comes to costs, if you choose to create your own coworking and office space, you could have much higher costs to equip your floor plan, due to fire regulations (the need for sprinklers, smoke detectors and lines in each dedicated room). Other supplies may include medium- and long-term costs, such as office equipment, furniture and facility management costs, such as lights and light bulbs, wiring and security equipment for the office. In addition to renting desks and meeting rooms, there are other ways to generate income from a coworking space. Consider including imaginative revenue resources, such as referral fees, products, virtual office rental, dedicated mailboxes, and member support (a model in which a loyal member takes over part of the tasks of managing the coworking space) to expand your space offering and make your coworking space successful and profitable for years to come. Turning your empty office into a co-working space could be an excellent option if you have desks, chairs, Internet access, phone lines and some conference rooms where people can take calls.
Additionally, if you manage a coworking space in Manhattan, a great way to expand your brand would be to partner with retail stores, coffee shops, and other spaces that can be converted into emerging coworking spaces. Modern coworking spaces consist of dissolving the boundaries between teams and workers and bringing them together in more flexible spaces, both in space and time, to create advanced economic models that jointly benefit all participants. Some coworking spaces employ office managers, while others allow members to regulate their own access and use by implementing electronic coworking space management tools. To conclude, with the right strategies in place it is possible for coworking spaces to become profitable. Read the latest article on the profitability of coworking spaces (201) or receive the most comprehensive report on cost-effective and unprofitable coworking spaces through the Global Coworking Survey.