Introduction
Space is an important element when there are so many companies in a building. And space utilisation is an idea where the workspace is measured for its efficiency, its usefulness, and its overall contribution to a company’s objectives. It’s essential to make the most out of every square inch so one can have a productive environment.
Many companies also spend hefty amounts of money to perfect their spaces. But still, a small or medium size company can reap the benefits of effective space optimization by shifting to a coworking module. The benefits of the shift are numerous, like the elimination of unused desks and the filling of them with something productive.
How Does Space Utilisation Work with Coworking?
Shared offices better known as Coworking Spaces are office spaces provided to those who require a better & affordable workplace. Coworking has become more critical of space utilisation & occupancy in recent years, especially after the covid. Although they charge as per the seats occupied, they rely on square foot measures to maximise the space.
What Do Statistics have to Say about Shared Offices?
According to a recent study, the global average square foot stands at approx. 7200 sq ft. If we consider smaller non-franchisee standalone spaces, and cooperatively managed spaces, there are more than 35,000 flexible working spaces existing currently which creates more than. 521 million sq. ft. of office space.
International real-estate giant CBRE reported a fivefold increase in average rent. The area of Coworking Spaces increased from 20,000 to more than 100,000 square feet between 2018-19. Square feet in India, with a strong possibility of the industry riding the growth wave shortly as well. Shared Workspaces with effective space optimization, lead to better employee retention rate & experience.
Read also: “Coworking Growth Statistics – Series 1“
Numbers that Matter
Flex space supply in the Indian market boomed, resulting in a significant increase in the total stock, which nearly tripled from 9.9 million sq ft. in 2017 to 29.5 million sq. ft. in 2020. It has seen to grow at an average annual rate of 23% since 2010 with 14% of corporate workers using coworking spaces regularly. In Chennai also, it has seen some tremendous growth since its inception.
Reasons to Avoid Bad Space Utilisation… At Any Cost!
Companies spend a chunk of their money on Office Space and let me tell you that vendors charge per square foot of space, which can vary based on the market’s demand. So, if a company is willing to spend so much, it will want to ensure that spaces are utilised well.
For example, if you consider that the market price per square foot is $20 & assume that the average space occupied by your 100 employees is 100 sq ft, then you will have to spend $2000 ($20 * 100 sq ft) per employee, therefore 100 employees would cost you around $200,000 ($2000 * 100 workers). Which is a lot. According to AECOM, estimates suggest that desks and offices in the workspace are only occupied about 42% of the time and, on average, workspaces are empty about 40% – 50% of the time during the workday. What will be their first reaction when they spent $200,000 on buying space but still don’t find any improvements in the working environment? Yes, you would feel the same way if you don’t optimise your space anytime soon.
Trends in the Favour of Space Optimization & Shared Offices:
The recent pandemic made us realise how vital social interactions are, and therefore promoting coworking spaces side by side. There has been a drastic increase in the coworking industry which shows no signs to stop.
- Coworking space will take a rise in the absorption of seats by at least 20-30%.
- Coworking is likely to grow by 20-25% in the coming few years.
- Indian coworking space is all set to pass 50 million square ft by 2023.
- 42.6% of the employees prefer coworking over WFH.
Conclusively, A workplace without any space optimization will frustrate people and compromise productivity. Companies can walk the extra mile to better optimise the space. Coworking and space optimization go hand in hand together and is the best option for anyone regardless of company size.
If you’d like to try coworking, we highly recommend making an appointment to determine whether the Executive Zone is the best choice for you. To improve the workplace with greater space usage, we made some significant financial investments during the early stages. Additionally, because there are so many workers in a coworking space, we receive regular input from them and can address any issues with the workspace.