Co-working as a value proposition for offices and neighbourhoodsPaul Keursten Coworking Africa Conference July 23, 2015 Workshop17, Cape Town

Key trends in work and value creation

• Economic and social development are intertwined.

• Innovation is the base for productivity and sustainability, the driver for economic, social and environmental solutions.

• Intrinsic motivation, passion and curiosity are the main sources.

• Innovation comes about in communities and networks in which individuals cooperate based on reciprocal appeal.

• Ideas develop and come to reality in a diverse and rich environments, where various sources of ideas and inspiration are in proximity.

• Our traditional offices don’t offer this environment.

• Co-working spaces do and thus are material as innovation hubs.

• Co-working spaces can become destinations and be vital to bringing neighbourhoods to life.

Traditional office vs co-working model

1. Separation of space and function: • everyone their own seat, desk,

space • separations of departments and

companies • each functionality its own space

2. Hierarchy of spaces: • individual office is goal • highest rank gets best space

3. Square meter based 4. Ownership based 5. Long term contracts

1. Sharing of space and function: • shared facilities and spaces • mixed use by various companies

and organisations • multi-functional continuum of

spaces 2. Level playing field:

• ideas are the currency • best space is shared

3. Member and community based 4. Use and access based 5. Flexible membership

Trends in commercial property

• Capacity has been growing on old assumptions and still is

• Office needs are changing.

• Office market is becoming a replacement market.

• Growing number of entrepreneurs, smal businesses and free agents can’t and won’t buy into traditional offices and office models.

• Autonomous professionals who drive innovation want an environment that is inspiring, high quality and does not look or feel like a traditional office. They don’t want to be stuck in office parks.

• Vacancy is growing, so pricing not going up.

• Value proposition is not matching a growing part of the demand.

• Margins are under pressure

Co-working answers

• Fill the continuum between coffee shops and traditional offices

• Create destinations:

• add value to the building, become anchor tenants in existing buildings

• revitalise old buildings into an ecosystem for work

• be a critical part of the mix for creating neighbourhoods that are alive

• Create networks of spaces ad people across locations: combining physical, virtual and community

• Partnership models:

• universities and knowledge institutes

• property owners

• incubators and accelerators

• co-working spaces

Challenges

• Finance models don’t match co-working models

• Still need to educate and prove the model to larger audience

• Get the mix of people in:

• entrepreneurs: starting and seasoned

• professionals: expertise in relevant areas

• decision makers and opinion leaders: influence and impact

• larger organisations: corporate, government and civil society

Value proposition

• Sharing resources creates a win-win:

• users get more than they can afford on their own, better quality

• Networks of spaces and virtual communities create extra value

• revenue per m2 goes up, property value increase

• Combining revenue streams:

• memberships and walk ins

• eventing, training and meetings

• (serviced) office rentals

• return on property

Thank you

Structure

1. Traditional office approaches 2. Changes in work and work environments 3. Office trends 4. Co-working’s answers:

• to changing work needs • economy of sharing based on time and access • continuum of spaces • revitalising spaces • creating destinations • creating a network of spaces • connecting virtual and physical to build communities