Coworking spaces were all the rage once remote work began to grow in popularity.Â
Companies such as WeWork began to offer communal workspaces outside of the traditional office, which was seen as an attractive alternative rather than just working alone. Despite the growing interest in these communal workspaces, almost half of them are unprofitable. The main driving force behind their struggling margins is the high real estate costs. This causes these coworking companies to charge members exorbitant fees for workstations, ranging from $200 to $700.Â
A new wave of coworking spaces in NYC are taking the market by storm by using alternative operating models that avoid the burden of real estate costs. By making use of previously unused spaces in hotels, restaurants, and bars, these businesses can reduce operational expenses by as much as 75%. Because of the lower costs, members are able to be charged the lower fees as well- some coworking spaces only charge $30 for access to a workstation. These new coworking spaces also focus on promoting a greater sense of community among their members, by planning activities like happy hours and shared dinners. They function as multipurpose hubs that host social events, provide working spaces, and create a community among members.
Source: Tavern Community
