Market Trends of Europe Coworking Spaces Industry
Market Growth Driven by the Increasing Number of Startups and Small Businesses in Europe Looking for Flexible and Affordable Office Spaces
Flexible offices and coworking spaces come in handy for startups because they can save a lot of money on renting, leasing, or buying office space. They can avail of office space according to their needs, budget, and time.
As coworking becomes more popular, more entrepreneurs are talking about how coworking also helps with essential networking. Coworking offers a lot of flexibility when it comes to leasing, and there are several different options to choose from. It also offers the advantage of being able to work from anywhere in the world, as well as being able to work in premium and easy-to-access locations.
In December 2022, the United Kingdom had more than 700 e-commerce startups registered, making it the largest e-commerce startup ecosystem across Europe. In comparison, France had 270 e-commerce startup companies registered, second only to Germany, which had less than 250 startups registered. Just one year earlier, Germany had the second-largest e-commerce and retail startup ecosystem across Europe.
In Germany, the e-commerce industry ranked sixth among industries with the highest number of startup investments in 2022, after industries including health, energy, software, and analytics. However, by May 2022, Germany was home to four of the top European e-commerce B2B startups in terms of overall funding.
Rise of Remote Work and Growing Demand for More Flexible Work Arrangements are Driving the Market
Coworking spaces are fast becoming the perfect fit for businesses. The world is rapidly moving toward coworking spaces that offer the flexibility and space to grow.
The freedom afforded by working from home, according to the research of 1,000 business leaders, is set to permanently alter the way people work. A study found that nearly half of the enterprises with office space (45%) plan to downsize by the end of 2025, and one in seven (18%) have already done so since the COVID-19 pandemic began. According to the study, about 18 million sq. ft of office space will become obsolete in the next five years, accounting for 18% of all currently occupied square footage. This is expected to have a significant impact on the way UK cities appear and feel.
UK businesses are also looking for shorter, flexible leases, which is increasing their adoption of coworking spaces such as WeWork, with 12% intending to use these locations more often instead of an ‘owned’ office. Among businesses planning to stick to the office, 13% stated they would look for accommodation with less desk space per head as the office’s main function would now shift toward more space for collaboration, such as break-out areas and meeting rooms.
In this new landscape, flexibility is the driving force for change, transforming office spaces into spaces of possibility. For example, small office spaces outside of London are attracting teams for under EUR 265 (USD 287.51) per person per day. These flexible spaces respond to the ever-evolving nature of modern workspaces that not only function but also respond to the evolving needs of contemporary professional life.
