It's a trend with quite a misleading name, that's for sure. Anyone with even a basic grasp of English who hears that “coworking” is currently booming might want to shake their head. Of course, colleagues ideally work together and, yes, the days of lone wolves in the office are over. But don't worry: this is about a broader form of collaboration. What is meant is that freelancers, creative professionals or small startups join forces to share larger premises. Clearly, this can create synergies, and that effect is very much intentional. However, the idea also owes its rapid rise to the shortage of housing in cities and the resulting high costs of a workspace that individuals can hardly afford on their own.
More and more freelancers are discovering the benefits of coworking for themselves. You can find out exactly what they are and how to make the most of the advantages of coworking here.
- Interdisciplinary collaboration
- Coworking benefit: manageable costs as the biggest advantage
- Not just a matter for trendy major cities
- What are the possible benefits of coworking?
- Can you concentrate in a coworking space?
- How much flexibility does coworking offer?
Interdisciplinary collaboration
You could almost call it a modern success story, whose stroke of genius lies in turning necessity into virtue. Because the advantages of coworking outweigh the drawbacks. A quick look at the property market shows where the necessity lies in this case: according to information from the property portal “immobilienscout24”, Munich leads the way when it comes to rental prices, with apartments currently averaging over 15 euros per square metre. Frankfurt is in second place (over 12 euros), with Stuttgart taking third place not far behind, followed by Heidelberg, Ingolstadt, Hamburg, Düsseldorf (over 11 euros) as well as Wiesbaden, Berlin and Offenbach am Main (over 10 euros). Things are not much better in the areas surrounding these cities either: anyone who can no longer afford the city moves out to the countryside, where, after a short delay, housing also becomes scarce and therefore expensive. Since prices for commercial property follow those for private property, albeit with a time lag, the conclusion is simple: businesses in Munich, Frankfurt, Stuttgart and the surrounding areas are hit hardest by the cost of company premises as well.
The first to suffer from this kind of development are traditionally solo freelancers, small start-ups, micro-businesses or creative professionals. Their earnings tend to be on the lower end of the scale, and small office spaces in the mid-price segment have become as rare as the proverbial jackpot win. The result is that they often set up their workspace in their own home, which then becomes the centre of everyday life. Get up, move from the bedroom to the kitchen for a quick breakfast, jump in the shower and then head back to the bedroom, living room or even study to sit down at the desk. What initially sounds like freedom and self-determination actually requires a high degree of self-discipline. And while it naturally has many advantages – you can put on a load of washing during a short break, and do the dishes too – it also carries risks: anyone who literally lives in the office sees work in front of them at all times and runs the risk of their lifestyle becoming a kind of blend of working and private life. The quality of both is significantly reduced – in short: quality of life can suffer.
OUT OF THE BUBBLE AND BACK TO SOCIAL WORKING LIFE
There is also another key aspect: living in a bubble leads to isolation, both professionally and privately. As annoying as business meetings and in-person appointments can be, they are incredibly valuable for laying the foundations for new projects, getting to know colleagues and clients, or opening up new opportunities for collaboration. This social side of office life, which many employees probably curse especially during busy periods, now disappears – even though it can be extremely valuable. Private relationships also suffer when work is constantly present at home and the self-employed person is practically never off duty. So it seems likely that it was a solo freelancer who, after a few years of working from home, remembered the positive sides of their time as an employee. And promptly came up with the idea of coworking. Or perhaps no one invented it at all and it simply developed naturally.
The fact is that the trend comes from the USA, where property prices in major cities have long been soaring through the roof with particular force. That was where the first so-called coworking spaces emerged: fairly large, open-plan offices rented by freelancers, artists, programmers, filmmakers or start-ups, who shared the cost of the infrastructure they needed. The next step was commercial providers offering coworking spaces on the market – often in expansive, prestigious office complexes where property agents struggled to find solvent single tenants. They provided workstations, internet access, network connections, printers, copiers, telephones, meeting rooms and projectors for presentations, and rented out the workstations individually. As it turned out, it was a brilliant business idea: the offices filled up one desk at a time – and individual operators working side by side became acquaintances and, in the best case, even colleagues. After all, where could you find the right web designer for your upcoming project more quickly than at the coffee machine in the kitchen or sitting on the office chair in the room next door?
Speaking of the “coffee machine”: the quietly bubbling machines and the rooms they stand in play an important role in coworking spaces. This is where the people renting the workstations get to know each other in a relaxed way and may even become “real” colleagues for the next project. Incidentally, the fact that business relationships today are often only formed on a job-by-job basis and, as a result, desk rental by the day, month or project is preferred to a fixed tenancy may simply be a sign of the times. Coworking advantage: the non-binding nature of assigning work to freelancers instead of in-house departments is now reflected across an entire professional group.
Manageable costs as the biggest coworking advantage
Besides the fact that solo professionals can meet at coffee machines and join forces as a team to take on larger projects, the major advantage of coworking spaces for users lies in their manageable costs. The level of hourly, daily, weekly or monthly rent naturally depends on the location and the facilities of the premises. However, the cost of having your own desk away from home is usually far lower than renting your own office. Large companies also take advantage of this fact by outsourcing staff they employ seasonally or depending on order volumes to coworking spaces.
This is especially true of a particular type of coworking, namely FabLabs. This term refers to coworking spaces that, in addition to standard office equipment, offer specialised devices, for example from the high-end sector. They can be of interest to companies that want to research a new product or test a new business area without having to invest in expensive cutting-edge technology such as lasers, 3D printers, plotters, mainframes or film studios. “FabLabs” therefore appeal to a specific clientele, who in turn can benefit from informal collaboration. New insights can be shared and the knowledge gained can grow rapidly as a result. Another advantage of coworking.
Not just a trend in hip metropolitan areas
It is true that the major coworking providers are naturally based in urban centres. Nevertheless, the idea of interdisciplinary collaboration is also gaining traction in rural regions. Over time, a wide variety of offerings has developed depending on the needs of each area: there are special workspaces for skilled trades, including the necessary equipment for tailors, restorers or architects – as well as bright, quiet premises in the backyards of old townhouses in small towns for agencies, event organisers and journalists. Some providers focus on prestigious designer offices, others on abandoned warehouses that they convert into creative quarters with ateliers and studios. Yet other providers are targeting the business of empty workstations: if a colleague is away on a long holiday, company owners can make use of their temporarily vacant desk Making money – as mentioned, there is hardly any place in Germany where there is no demand for flexible workspaces.
A look at the figures confirms this:
There are currently around 1.3 million freelancers in Germany, plus more than 300,000 new startups every year as well as a good two million expanding small businesses. This constantly adds up to several hundred thousand people in the Federal Republic who need a desk. No wonder the market is buzzing: “shareDnC” has established itself as the largest provider of workspaces in Germany. Depending on the region, the cost of one ranges from 100 to 400 euros per month. An overview map shows plenty of locations in and around Hamburg, Berlin, Magdeburg, Hanover, Frankfurt am Main, Düsseldorf, Cologne, Bonn, Wuppertal, Stuttgart, Mannheim, Karlsruhe, Munich or Nuremberg – and the trend is rising.
What are the possible benefits of coworking?
The most obvious benefit of coworking is, of course, cost-effectiveness. After all, if you do not have to rent your own office, but essentially only an office chair, it works out much cheaper. And the money saved can be invested elsewhere in the business.
The infrastructure of the office can be used by all coworkers. Another advantage of coworking is that you do not need your own internet access, printer, scanner or meeting room for appointments with your customers.
Networking: Making contacts for collaboration with people from other industries is very easy. Coworking therefore offers a flexible and productive working environment.
However, despite all these advantages, there are a few things you should keep in mind if you are interested in coworking.
Can you concentrate in a coworking space?
When many different people work in a non-binding environment, problems can arise too. This can happen, for example, when there is no space left in the office just when you need it. Or the infrastructure may be in use or out of order exactly when you need it for your own project.
That, in turn, does little to support concentration. However, many coworking offices have so-called silent rooms where the peace and quiet needed for work prevails.
In the other rooms, a conversation with colleagues can be inspiring and help you clear your head. Most coworking spaces have a pleasant, homely atmosphere with natural light, pictures, plants and perhaps even pets. An office home where everyone feels comfortable creates a relaxed working environment and boosts concentration. The limited time spent at the workplace also creates a certain routine. Unpacking, working and then putting away your materials again helps you stay focused. Since there is no obligation to be present, self-discipline is required. However, opening hours structure the working day and events can provide motivation. This also gives concentration a helpful boost.
How much flexibility does coworking offer?
If you need to rent office space, you are normally tied in for the longer term. Coworking is different. Here, workstations can be rented spontaneously and for a manageable period of time. So if you need office space, you only have to pay for the time you actually use the premises. And you can also cancel the workspace again at short notice.