With the growing number of companies setting up coworking spaces, it can be difficult to keep up with them. The larger suburban players have the advantage of brand name recognition, but smaller suburban players may struggle to distinguish themselves. If they are to survive outside of dense urban areas, they will need to differentiate their business models and offer something unique.
Co-working giants are betting on suburbs
More coworking giants are betting on suburban locations. For example, IWG, which owns properties in suburban cities like Stamford and Philadelphia, sees enormous potential in these areas. According to Michael Berretta, IWG’s vice president of network development for the Americas, the company is evaluating opportunities in these areas through its Spaces coworking brand. However, other big coworking companies have yet to expand into the suburbs.
While the New York City coworking market has seen rapid growth, the suburban market has been relatively stagnant. In fact, the number of coworking spaces in New York City increased by 47 percent between 2016 and 2018. Colliers International, a commercial real estate company, estimates that there is now 43.5 million square feet of commercial space devoted to co-working in 20 major U.S. markets as of December 2018.
While cosmopolitan coworking spaces attract the younger generation, suburban spaces have a slightly different vibe. These spaces are more intimate, offer private offices, conference rooms, and meeting rooms, and tend to cater to a slightly older crowd than their urban counterparts. At Serendipity Labs, for example, 75 percent of its members are between 30 and 49 years old.
They need to differentiate themselves from larger suburban rivals
To stay relevant in an increasingly competitive environment, coworking companies need to differentiate themselves from larger suburban competitors. As the demand for coworking grows, suburban business owners must offer innovative solutions that help grow companies. Several factors should be considered in this process. The first factor is location. In a metropolitan setting, more than half of the members of a coworking space will be corporate employees. Suburban areas, on the other hand, are often home to smaller companies and freelancers.
A coworking space’s location is one of the most important factors to attract customers. In a city, a downtown location offers panoramic views of the city, proximity to restaurants, and a younger, professional crowd. Taking advantage of a local location can help a coworking company position itself ahead of its competitors and meet the needs of prospective clients before they even come to their coworking space.
They need to attract businesses
Coworking is one way to attract businesses to the suburbs, a concept that has become popular in recent years. The concept has some advantages and some disadvantages. For starters, workers may have to commute to Manhattan five days a week. However, it also attracts a wider talent pool, which is a plus for the region. It may also boost the economy in the area.
Coworking provides attractive office spaces in upscale neighborhoods. As a result, companies can attract the best talent without being tethered to an exclusive corporate location. It has a variety of advantages for companies, including access to shared resources and a network of people who matter. A common reason for such a need is the fact that millennials are driving the migration to the suburbs and southern states.