What does coworking mean today?

What does coworking mean today?

In decades past, there was a clear delineation between coworking spaces and executive suites.  Executive Suites were an easy way for small businesses to sign a short term lease for a small office in a larger space that shared the costs of a reception area, kitchen and conference rooms with other businesses.  Coworking spaces were fun open playgrounds of business ideation and spontaneous interactions for startups. 

In the past 10 years (and especially post COVID), executive suite companies started offering hot desks and other coworking offerings, and coworking companies started dedicating more of their floorplans to private offices. Some coworking spaces don’t even offer hot desks any more, and almost all of them (including all of the national chains) derive the vast majority of their revenue from private offices. The lines between these two categories have blurred to the point where the term “Coworking” has now become the accepted industry umbrella term for both styles. 

However, practically speaking, most coworking companies still fit into one of two coworking sub-categories that resemble the old division:

1. Executive Suite Style Coworking Spaces
2. Community-Focused Coworking Spaces.

Regus was, and still is the largest player in the Executive Suites style sub-category of coworking. Premier Workspaces and Office Evolution are other national chains of executive suite style coworking spaces.  WeWork was, and (contrary to popular belief) still is the largest player in the community-focused coworking category. Other popular national chains of casual coworking are Industrious and Spaces (owned by Regus.)

A third style of coworking space positioned “between” the other two has recently emerged – Private Office focused coworking. These spaces bring some (but not all) of the social interaction of a community-focused coworking space, while retaining the professional feel of a traditional executive suite – albeit in a more modern style. Lucid Private Offices is an example of a private office-focused coworking space.

3 Types of Coworking Spaces

Community-Focused Coworking Spaces: (like WeWork or Industrious)

No longer predominately open hot desk space, community-focused coworking spaces are characterized by their casual, youthful, active vibe. The reception desk (if there is one) is always in a fun, coffee-shop style workspace with lots of visible laptops and headphones. While most of the space is carved into private offices, the word privacy is used loosely, since virtually all the walls are floor to ceiling glass. They usually feature warehouse–style exposed ceilings and concrete or other hard floors.  Some are definitely more upscale than others, and many of them would push back against being labeled “casual”. Many of them have very expensive recent finish-outs, and despite their casual feel, they are often more expensive due to being newer spaces. However, there is always a young clientele and it is always obvious that these spaces are shared and temporary. Even though most of their revenue comes from private offices, they still feel more focused on interaction and community than on private office productivity. These are usually the best type of coworking spaces for freelancers looking to expand their networks, or for mid-sized teams of young creatives looking for an almost playful atmosphere with lots of interaction with the other members.

Executive Suite-Style Coworking Spaces: (like Regus)

While some of these have recent minor cosmetic improvements, they are very much the same configuration from decades ago. These spaces are more affordable per desk or per square foot because the buildout was paid for long ago. Most of the clients keep to themselves, but have been there for years. Telephone answering and mail and package handling are some of their key services offered.  Their lease terms are more flexible than conventional office space, but more rigid than casual coworking spaces. These are usually the best type of coworking spaces for established professionals who don’t care about meeting new people or impressing their visitors and who are looking for the most cost-effective option.

Private Office-Focused Coworking Spaces: (like Lucid Private Offices)

This coworking model combines elements of the first two and draws inspiration from both ends of the style spectrum. The spaces are all new, bright, modern and high-energy without feeling casual. First impression wow factors include high end finishes and bright receptions free from logos or shared-space aesthetics. The meeting rooms have a contemporary neutral aesthetic designed for outward-facing client meetings rather than quirky idea generation sessions. The floors, walls and ceilings combine elements found in a WeWork and those in a Regus to create a blend of energy and privacy not found in either of the other two categories. (For example, the walls are a mixture of glass and drywall, rather than all drywall like a Regus or all glass like a WeWork.) The community of members here skews older than a WeWork, but younger than a Regus. These are usually the best type of coworking spaces for affluent professionals whose clients come to visit their office, or for small teams who want to surround themselves with driven people focused on accomplishment.

Summary Definitions:

Community-focused coworking spaces prioritize fun, idea generation and community interaction over professionality, privacy or focused work. These spaces are occupied not only by freelancers looking to expand their networks, but also by many corporate and enterprise teams looking to lure young employees with a fun work environment.

Executive Suite style coworking spaces provide cost-effective solutions that prioritize complete privacy in familiar, traditional office layouts. These spaces are typically occupied by individuals who want to keep overhead low and who prefer a quiet workspace.

Private Office-Focused coworking spaces blend various elements of coworking spaces and executive suites, prioritizing professional image and productivity while retaining much of the modern feel and energy associated with casual coworking spaces. They are typically used by client-facing professionals and small teams that value performance over frequent community interaction or lowest cost occupancy.

Frequently Asked Questions