Co-working spaces grew out of the technology explosion and start-up boom about 10 years ago, and enabled freelancers and entrepreneurs to work from home. They initially catered to individuals who felt too isolated or didn’t like holing up in a coffee bar all day long, offering them shared office space at reasonable rents.
Now, however, the market has been cornered by the likes of Pipeline, WeWork, Grind and NextSpace, which rents desks and office space to thousands of tenants in cities across the U.S., Europe and Israel.
In Miami, one of the first places to feature co-working spaces, a communal desk rents for about $200/month; a fixed solo desk commands $500/month; and private suites start at $700/month. Mainly found in central business districts, the communal work spaces are a win/win for small tenants and large real estate concerns alike.
The spaces are still mainly rented by freelancers, entrepreneurs and start-ups, and offer real estate developers “starter” lease clients who may grow into larger, long-term tenants.
The shared spaces also foster interaction and networking opportunities in an environment of diverse businesses, and feature attractive office spaces with conference rooms, high-speed Internet, phone booths for private conversations, free coffee, and even artisanal tea.
Community managers are on-hand to foster connections among “members.” Small-size tenants don’t mean small potatoes: The Wall Street Journal recently estimated WeWork’s valuation at $10 billion.