What to Look for in a Coworking Space: A Checklist for Success

What to Look for in a Coworking Space: A Checklist for Success

What is most important for a coworking space? What elements, services or strategies should you develop to make your coworking space more attractive? There are factors such as location, rates or amenities that are the usual suspects but for this post, I have chosen to focus on a survey that Instant Offices conducted among its users last December although, of course, I will complete the picture with some things that I think have been left out of the survey.

The survey question is: What really sets flex spaces apart from other office types?

Instant Group's interpretation of the survey data is summarised as ‘This latest research suggests that today's workforce wants a combination of professionalism and a friendly and approachable atmosphere in their workspaces, and this need is becoming increasingly relevant in the era of hybrid working’.

I also find particularly relevant the reading they make on how the different elements that are valued affect different phases of the same ‘Amenities might initially attract office seekers, but service levels keep people returning and ultimately decide the long-term value of a space’.

Although if you run a coworking space in North America you should bear in mind that in your region... ‘Interestingly, friendly staff is the top priority in every region except North America. North Americans place a higher value on the availability of different space types. Across the board, a trusted brand and a sense of community also rank highly.’

And something that may go unnoticed but should be on everyone's radar: ‘This focus on quality service will become a key distinguishing feature between today's flexible workspaces and the growing variety of agile leasing options expected to emerge soon’.

Three key factors: or is it really two?

The three differentiating factors between coworking spaces and other solutions that according to this survey carry the most weight with users are: friendly staff, clean and modern environment and multiple types of space to enable greater productivity. This combination reminds us how important it is for coworking spaces to have well-trained, professional and service-oriented staff: they are by far the factor that users highlight the most.

The second and third aspects have everything to do with space design and space quality. The times of offering a space that is outdated and lacks quality common areas that allow different needs to be met when working are long gone: doing so without impacting your bottom line is the challenge. Not taking this into account means in the medium term having to lower prices or face refurbishment.

A usual suspect and an insider

The fourth and fifth characteristics: help foster a sense of community and trusted brand involve two very different aspects that are based on our ability to generate a community in a space and the trust that our brand offers. Regarding these two aspects, I think that community building has been discussed at length, but I would like to point out that we cannot emphasise that each type of community will take different forms. However, I don't think enough has been said about the trust that a space should project: we manage the members' workspace. We control all aspects of it and that is a great responsibility that we must know how to project to our clients, future clients, brokers, and any stakeholder with whom we interact.

On these five key aspects, I think it is worth making some extra reflections:

• There are some quality standards that you cannot ignore, and these standards are constantly evolving: when a competitor in your price range and target audience, for example, improves their chairs, or the acoustic insulation of their offices, you have a new challenge to take into account. Obviously we cannot rush headlong into improvements without assessing the impact of the change on demand and economics. This is why it is important to develop service-related intangibles: not only because they are highly valued by the customer but also because they are extremely difficult to copy.
• Social networks are not only a tool to talk to potential customers or launch promotions, but they are also a key tool for projecting trust. Social media allows us to show what is happening in our space and reflect the user experience of our members while talking about our value proposition.
• The working environment that is generated in common spaces is our responsibility. Recently working from the flex zone of a coworking space I saw how a person ruined the atmosphere of the space and that should never happen. First of all, I have to tell you that I have been manager of several coworking spaces and I know it is not easy but if someone has to look after the good atmosphere of the space it is you: it is enough that one person does not behave in an acceptable way for all the work you have done for months or years to be ruined.
• Staff is key and in some spaces, there is, unfortunately, an excessive turnover of staff, which is a symptom that something is not working. Replacing the umpteenth person who leaves a position is like trying to repair a severed artery with a band-aid.

The other factors

When we look at the other factors, we can group them into four categories.

Location: easy access due to transport connections, and access to social amenities in the surrounding areas.

The availability of public transport in the area and/or how accessible it is for workers is an essential factor in defining whether a location is good or not. Thus, a very isolated space is often a bad idea, just as a space in the centre of the main tourist area can be a bad idea if the space is business-focused: excessive density of people, overcrowded public transport, and difficult access by private vehicle means that to take a real-world example, a business-oriented office building will have difficulty finding a tenant in a city with low availability of quality office space.

Another key factor is whether it has nearby amenities. Are there cafes, restaurants, gyms, or shops nearby? Having amenities within walking distance is something that members will value. In isolated environments, setting up a coworking space in a shopping mall, or other similar location, can be a great idea as it concentrates many services and gastronomic options, however the gastronomic offer in a tourist area may not match the expectations and quality of the users of the space.

A good location changes everything, a bad location changes everything. Choosing a location that is not aligned with the type of space we want to create, or a space where we cannot undertake the renovation needed to be attractive to the public that will work in that specific location is a recipe that ‘I'm not saying it won't work, but I can assure you that it will grow much more slowly than in a better location’. I said this same sentence to one of my clients a few years ago. Another client didn't understand why the location wasn't good enough for me to suggest discussing it over lunch on a terrace a few metres from the potential space. After more than half an hour I asked him if he had observed the type of public in the area.

Obviously there are more factors to take into account and they will vary depending on the audience, environment, market,...

Costs: more cost-effective

No matter what type of coworking space you run, or plan to run, your pricing and service proposition are important. The plans and rates you have are really the cornerstone where everything comes together: market prices, the needs of your target audience and what they are willing to pay must fit perfectly with the level of service you offer and, above all, with your costs.

For corporates it is relatively easy to create rates, as at most if they have a flexible working scheme they may ask for some flexibility in terms of capacity: for example, having X seats in a private office while the number of people authorised to access the space is 2X. As with everything else, whether or not you agree to this will depend on your occupancy and the price they are willing to pay. Another important factor for this type of client is the possibility of having other areas to receive visitors, or to accommodate temporary workers from other companies or visiting staff from your company, equipped meeting rooms and the possibility of sizing your contract to the needs of the business.

However, the processes, especially for large companies, are often time-consuming and you have to interact with different stakeholders as their needs are often much more comprehensive and may include specific technology needs or much more complex compliance processes.

For freelancers and remote workers, it is a different story. For many, coworking is an out-of-pocket expense, so they tend to be even more sensitive to the price and commitment of a contract. This will obviously vary depending on each person's needs, but having a good pay-as-you-go scheme is a must. Remember though that flexibility must pay off: that means higher rates. In other cases simply the extra workload that these schemes can generate will not compensate you unless you automate the process with space management software. For a coworking space in a tourist destination, this is obviously not optional.

Another common mistake I see, especially in small spaces, is ‘unlimited meeting room use’. This is malpractice: it only takes one member or group of members not understanding fair use for the system to collapse. I have witnessed how 5% of the members of a venue can make 50% of the room bookings in the venue.

Offering and promoting trial days can be a mistake in some cases: If you have the impression that there are people who abuse this type of promotion, I suggest you change to a strategy of charging the day pass and if the person subscribes, subtract the amount paid from the first invoice: if they don't accept it, they are not really interested in the space because if they stay, they will save money.

Health & Wellbeing: amenities aimed at health and wellbeing, access to outside space

Outdoor spaces and wellbeing were factors that have been gaining importance for at least a decade, accelerating from 2020 onwards. Outdoor spaces, better furnishings, sports facilities, climate control air filters, etc. are factors that are becoming increasingly important.

Last but not least, technology: easy to connect to technology

Connectivity and stability of connection are key to member satisfaction. As are agility and security when interacting with the space, accessing the space, making reservations, managing payments, etc. A good connection, with redundancies if possible, a stable and secure wifi and management software that allows users to interact quickly and autonomously with the space are essential.

I hope this information has been useful for you to reflect on what is important to your members. However, there is one thing that, I think, can help you in the process to get a more accurate picture of what is a priority in your particular case. Try to get answers to the first two questions a potential user will ask when they come into contact with your space, especially when they walk through the door: will I feel good working in a space like this with people like this, and what image will I give to my clients when they visit the space or make a video call from the space? Ask yourself the question but ask it to current members, new members and especially to those who have not yet become members.

This is for me the best starting point: find out the answer to these questions for your target audience and make sure that your coworking value proposition fits the needs identified and that this is conveyed in all interactions with potential customers that answer these questions in the right way.