Co-Working Space Dynamics

The Rise of Coworking: What It Means for Traditional Leasing Models Coworking spaces aren’t just a trend—they’re reshaping the way businesses think about office leasing. Here’s what we’re seeing: 1. Flexibility is King: Companies want short-term leases and scalable spaces to match their growth (or contraction) without long-term commitments. Traditional models? They’re feeling the pressure to adapt. 2. Amenity Wars: Coworking spaces offer high-end perks—think coffee bars, wellness rooms, and networking events. Tenants now expect these experiences in every office building. 3. Hybrid Work Influence: With hybrid work here to stay, businesses need less fixed space but more collaboration-friendly environments. Enter coworking: a perfect fit. 4. Landlords Get Creative: Many are embracing coworking within their properties or partnering with operators to meet demand. Others are rethinking how they structure leases entirely. The Big Picture: Coworking is pushing traditional leasing into a new era, where flexibility, community, and experience drive decisions. Landlords, tenants, and brokers—how are you adapting to this shift? Let’s discuss! 

The coworking industry thrives on flexibility, but that shouldn’t come at the cost of clarity. A well-structured agreement protects both the coworking space and its members, ensuring smooth operations and avoiding unnecessary conflicts. I recently had a member who signed up for a 36-month membership with a lock-in period. 18 months in, they wanted to exit, claiming they hadn’t realized the lock-in meant they couldn’t just leave without penalty. “I thought coworking was all about flexibility,” they said. While we eventually found a middle ground, that experience made one thing clear—if a clause isn’t explained upfront, it will become a point of contention later. Here are five key clauses every coworking space must pay close attention to: Service Agreement vs. License vs. Lease – Clearly define whether your contract is a service agreement, license, or lease. A service agreement offers the most flexibility, while a license grants members the right to use the space without creating tenancy rights. A lease, on the other hand, may give members legal possession of a portion of the premises—something most coworking spaces want to avoid. Choosing the right structure protects your business from unintended legal disputes. Termination & Exit Terms – Flexibility is key in coworking, but so is clarity on how and when a membership ends. Define: Notice Periods – How much advance notice members need to give before canceling. Lock-in Periods – If members are committing for a fixed duration, state this explicitly to avoid mid-term exits. Early Exit Policies – Any penalties for breaking the agreement before the term ends. Refund Rules – Whether security deposits or prepaid fees are refundable and under what conditions. Breach of Agreement – Grounds for immediate termination, such as non-payment or policy violations. A vague exit clause can lead to revenue loss and operational headaches. The clearer, the better! Use of Space & Conduct Rules – Define what members can and cannot do in the space. Specify acceptable business activities, visitor policies, and general behavior expectations to maintain a productive and professional environment. Liability & Indemnity – Clearly state that the coworking space is not liable for business losses, injuries, or data breaches occurring on the premises. A strong indemnity clause ensures that members take responsibility for their actions, reducing legal risks for your space. Payment Terms & Default Consequences – Define due dates, late fees, and what happens in case of non-payment. Will access be restricted after a certain number of missed payments? Will you charge interest on overdue amounts? A well-drafted payment clause ensures financial predictability. Lesson Learned: The best agreements prevent disputes before they start. Take the time to craft strong clauses—it’ll save you tough conversations down the road. #Coworking #FlexibleWorkspaces #CoworkingAgreements #SharedOffices #LegalTips

The flexible work revolution has undoubtedly reshaped how and where we do our jobs, and coworking spaces are emerging as an important part of this shift as evidenced by CBRE recent acquisition of Industrious. However, as I shared in this recent Marketplace by APM segment (link in comments), coworking may be a bright spot in commercial real estate, but I'm skeptical that, "coworking is the solution for the forever war between employer and employee over return-to-office...employers have to know what they want their employees to do when they force them to leave the house. 'You’ve got to lead with the work, not the space,' said Yost. “You’ve got to start with the what, and then the where.'" Here’s the reality: coworking spaces, while helpful, aren’t a silver bullet to bridge the onsite vs. remote work divide between employers and employees. At its core, this tension isn’t about the space itself—it’s about trust, communication, and alignment. Employees want flexibility to work in ways that optimize their productivity and well-being, while employers seek cohesion, innovation, and accountability that they believe will happen by mandating more on-site presence. Coworking spaces can enable connection and collaboration, but only if the work that benefits from in person interaction is identified, planned and prioritized in advance. That's the deeper culture shift required to truly bridge the gap. Employers must engage their teams in thoughtful, intentional process to clarify the expectations, priorities, and practices that will define their go-forward flexible work model. The future of work isn’t just about "where" we work—it’s about the flexible, dynamic way we work together across workspaces, places and time, with coworking spaces playing a role. But success will require moving beyond surface solutions and focusing on the systems and relationships that drive meaningful results. What do you think? How are you addressing the flexible work challenge in your organization? What role do coworking spaces play in your emerging work model? #FlexibleWork #Coworking #FutureOfWork #Flexibility #HybridWork

The bank that builds co-working spaces will own the SME market. And the math is embarrassingly simple. There are ~2.6 million SMEs in South Africa. Freelancers, agencies, consultants, solopreneurs working from kitchen tables, Vida cafés, or overpriced WeWork desks. Now imagine a business bank says: "Open a business account with us. Your co-working membership is free." Game over. Here's why the economics actually work: The space pays for itself. A single co-working desk costs a bank roughly R2.5k /month to operate. But put a decent coffee bar and food counter in the space, and each member is spending R150–R200/day on coffees, lunches, and snacks. That's R3k–R4k/month in F&B revenue per seat. The co-working space isn't a cost centre. It's a break-even venue that happens to generate banking clients. The banking relationship is where the real margin lives. Monthly account fees. Card transaction revenue. FX on international payments. Cash management. Insurance cross-sell. And of course, lending. The lifetime value of an SME banking client is R50k–R200k+ depending on the business. The cost to acquire them? A desk and good Wi-Fi. Compare that to the tens of millions banks currently spend on digital ads, BDMs, and branch activations chasing the same clients. Now here's bonus points: credit intelligence. Every time an SME checks into the co-working space, the bank sees it. Someone who's checking in at 7am five days a week, taking meeting rooms, hosting clients? That's a founder building pipeline. That's someone whose business is alive and active. Someone who hasn't checked in for three weeks? That might be an early warning signal. This is behavioural credit data that no bureau can sell you. It sits alongside cash flow data the bank already has from the business account, and together they create a credit underwriting model that's radically better than anything in the market today. The bank doesn't just acquire the client. It understands the client in a way competitors never will. The flywheel is obvious: Free co-working attracts SMEs → SMEs bank with you → Banking data + physical presence data improves credit models → Better credit models mean better lending offers → Better lending deepens the relationship → Word spreads → More SMEs walk through the door. The playbook already exists in pieces. Capital One in the US already runs café-branches with Peet's Coffee, free Wi-Fi, and meeting rooms proving the model works. Nobody in South Africa has put it all together yet. The bank that builds 50 co-working spaces in CBDs, suburban hubs, and secondary cities and gives every business banking client a free membership, won't just acquire customers. They'll build the most defensible SME banking franchise in the country. And it starts with a desk, a decent flat white, and the courage to think differently about distribution.

"Space is not a backdrop for action but a setting for engagement, trust, and growth. Space emerges in the interplay between objects, structures and actions.” Constructing spaces for interaction goes beyond physical proximity; it’s about fostering an environment where open communication and collaboration can thrive. These spaces—be it physical meeting rooms, virtual platforms, or informal gathering spots—are the breeding grounds for ideas and innovations. Thoughtfully designed spaces break down barriers and build a culture of trust and mutual respect. Essentially, these are spaces where individuals relate to each other and knowledge is created, providing a platform for increasing individual and/or collective knowledge. When designed with intention, spaces can dismantle power dynamics that often hinder genuine feedback and reflection. Such environments foster psychological safety, allowing individuals to express their ideas and concerns freely. This safety is crucial for authentic feedback, reflection, and innovation. Knowing they can speak up without fear of negative consequences, people are more likely to share their best ideas and embrace constructive criticism, leading to both personal and organizational growth. Dynamic equilibrium within these spaces—balancing stability and change—allows for continuous adaptation without compromising core values. Clear yet flexible structures support individual and collective needs, maintaining momentum and alignment. Leadership is key in modeling and reinforcing the desired culture within these spaces. Leaders who engage in open dialogues, show vulnerability, and commit to inclusive practices set the tone for the entire organization. Their actions signal to employees that it is safe to express themselves and that their contributions are valued. The aesthetics and ergonomics of physical spaces also play a critical role. Natural light, comfortable seating, and thoughtful layouts create a conducive atmosphere for creativity and engagement. Incorporating biophilic design elements, such as plants and natural materials, can reduce stress and enhance well-being, promoting a positive and productive work environment. In the realm of Organizational Development (OD), the concept of constructing space goes beyond the mere physical setup of offices and meeting rooms. It encompasses the intentional creation of environments that nurture open communication, foster collaboration, and catalyze innovation. The essence of these spaces lies in their ability to facilitate regular, purposeful interactions for behavioural change. One of the most significant benefits of constructing such spaces is the cultivation of a culture of trust and mutual respect. When people feel that their voices are heard and their contributions valued, they are more likely to engage actively and collaborate effectively. #OrganisationDevelopment #Space #StructureAndCulture #Sociology #BehaviouralChange #ReflectiveSpaces

Coworking is dead! Co-office seems to be the norm now. Coworking was created as a way for freelancers and entreprenerus to share ideas, knowledge and build a community of cool people doing cool things. Most so-called coworking spaces are now co-offices. An office building full of small offices where companies put their employees with little to no knowledge share. I don't blame the companies doing it, it's just more profitable, but although it serves a purpose, it's not one of connection and ideas sharing. Coworking is something different... Coworking is community and we see a big trend of the coworking spaces changing slowly to become social spaces, places where people go to connect and work. These spaces are often comfortable, with plenty of events and put the community first. Their way to profitability is very intelligent, these spaces added something that all remote workers love. Coffee and snacks. So they can charge a lower membership as part of their profitability comes from the café inside the space, making the event organization not only key for the community but the best way to always keep their café full after working hours. A true win win. I recently visited a coworking café in Paço de Arcos that had an open café with comfortable chairs, a coworking space on the first floor and... A place for kids to play with fun interactive infrastructure. O Passo is the future of working spaces, a place for connection, work and family. More spaces like that are thriving as the incentive to build the community is much bigger when you have a café to serve food and drinks. Outsite café coworking is another successful case of these trend. Coworking as a space where you rent a desk is dead. But maybe it's for the best. Social hubs with coworking have their incentives better aligned and will replace the typical coworking space. What are good Coworking as a social hub spaces you know of? Picture of O Passo in Paço de Arcos, Lisbon. #remote #coworking #digitalnomads

How do we redefine office spaces to maximize team collaboration and workplace value? In hybrid workplaces, 70% of employees report insufficient focus time, while 2 in 5 meetings now involve 10+ attendees. How do we adapt our office spaces to meet modern demands while driving productivity and collaboration? Here are the latest trends shaping the future of workspaces: 🌟 Workflow intensity and meeting overload: ➡️ 70% of individual contributors (ICs) report insufficient focus time, which directly impacts their ability to deliver high-quality, creative work. ➡️ Workday spans have increased by 30 minutes, reflecting the growing demands of hybrid work schedules. ➡️ 2 in 5 meetings now involve 10+ attendees, reducing effectiveness and creating a drain on resources. ➡️ Managers attend 2-3x as many meetings as ICs, underlining the need to optimize leadership schedules to create space for strategic work. 🌍 Low peer density in non-HQ locations: ➡️ In satellite offices, fewer than 30% of peer collaborators are in the office on the same day, limiting the value employees gain from in-office interactions. ➡️ Employees in low peer-density environments report feeling disconnected, impacting collaboration and the perceived ROI of office time. ➡️ Increasing peer density through anchor days or more thoughtful scheduling can yield significant gains in cross-functional collaboration. 📊 Evolving space needs: ➡️ Cross-team network gains are directly tied to in-office time, but collaboration-heavy anchor days have led to a surge in demand for smaller spaces, especially for 1:1 interactions. ➡️ Hybrid meetings dominate, yet many offices are under-equipped for the shift, creating a significant need for additional 1-person rooms. ➡️ The data shows that flexible workspace design and responsive space allocation can drive better alignment with how teams actually work. 💡 Key considerations for REWS leaders: ➡️ Focus time optimization: Consider implementing quiet zones or schedules that protect focus hours, as ICs thrive on at least 3-5 hours of uninterrupted work daily. ➡️ Peer density strategy: Introduce policies or incentives that drive peer alignment on in-office days, especially in satellite locations. ➡️ Space utilization redesign: Analyze hybrid meeting trends and allocate resources toward smaller, tech-enabled spaces for 1:1 and small-group interactions. For REWS leaders, the challenge is clear: balance collaboration, flexibility, and efficiency with data-driven space designs. At Worklytics, our actionable insights help organizations navigate these changes with confidence. Check the comments for additional strategies from our latest research. How can you align your office spaces to better meet the demands of hybrid work while maximizing real estate ROI? #WorkplaceExperience #WorkforcePlanning #WorkplaceStrategy #REWS #CRE

Rethinking the Workplace: Why Flexible Spaces are the Future The way we work is evolving, and the impact of smart, flexible, shelf-stable spaces goes beyond aesthetics & function: • It shapes culture • Elevates morale • Boosts productivity • Drives profitability WeWork's latest survey, outlined in a recent discussion by their new CEO - John C. Santora (ex Cushman & Wakefield), highlights just how essential flexible workspaces are becoming: • 86% believe the 'office' will be key to profitability and culture over the next five years. • 72% of companies plan to expand their workspace in the next two years. • Of those, 59% are turning to coworking and flexible office spaces. Breaking it down by work model: • 95% of remote-first companies are planning workspace expansions, with nearly 3 in 4 prioritizing flexible options. • 76% of office-based and 68% of hybrid companies are expanding too, with two-thirds opting for coworking solutions. The takeaway? Whether you’re remote, hybrid, or office-based, flexible workspaces are more than a trend—they’re a strategic investment in culture, innovation, and growth.

Queries on "Connection" are rampant. The Beautiful Collapse: Where Space, Connection, Interests, and Design Intersect The walls between work, interests, and connection are collapsing. People don’t switch off their passions when they work. They bring their love of travel, music, fitness, or baking with them. The spaces we inhabit are finally catching up to this reality. Blurring the Lines Between Function and Identity For years, spaces were single-purpose: offices for working, gyms for sweating, coffee shops for caffeine. Now, the gym hosts networking events, the coffee shop doubles as an art gallery, and co-working spaces include kitchens for cooking classes. This isn’t chaos; it’s evolution. Look at the top interests on Tinder: music, travel, fitness, food, photography. These aren’t hobbies—they’re identities. Why shouldn’t spaces reflect that? Why shouldn’t a workspace also be a yoga studio? Or a bar have a podcasting booth? The spaces we gravitate toward now aren’t just functional—they’re mirrors of who we are. Connection Isn’t Proximity A myth of the old work world is that being in the same room creates connection. It doesn’t. Connection happens over shared sparks—an idea, an interest, a goal. You don’t bond with coworkers because you sit next to them in a cube. You bond because you both listen to death metal or ran into each other at the climbing gym. Thriving spaces amplify those sparks. They create intersections for interests to collide in unexpected ways. That’s why co-working spaces now offer DJ nights, cooking workshops, and fitness classes. Connection is messy and personal, and spaces need to reflect that. The Death of the One-Size-Fits-All Space Spaces that try to be everything to everyone—or worse, nothing to no one—are dying. The office-as-status-symbol is dead, as are generic co-working spaces. What’s replacing them are spaces that embrace specificity. Into woodworking and indie film? There’s a space with a maker’s lab and a screening room. Thriving spaces are designed for real humans—not a sanitized HR fantasy of what people “should” want. Designing for Diversity of Experience The collapse is forcing design to wake up. It’s not about making spaces “cool.” It’s about environments that reflect the spectrum of how people connect and recharge. For some, that’s open areas buzzing with activity. For others, it’s quiet corners for focus. It’s also about functionality. Think co-working spaces with climbing walls or homes that double as content studios. These aren’t gimmicks—they reflect the messy, overlapping realities we live in. No Nostalgia, No Apologies The convergence of space, connection, interests, and design isn’t a problem to be solved. It’s a reality to embrace. Spaces can be chaotic and unpredictable. That’s magic. We’re in a revolution in how we think about space and connection. It’s not easy, but it’s real. Let the collapse happen. It’s building something better. #innovation #management #creativity #futurism