What are the Pros and Cons of Shared Office Space?

What was once seen as a freelancer’s domain has now become the preferred choice of entrepreneurs. Shared office space can be defined as the practice of two or more businesses sharing a commercially leased office. It is a space where employees belonging to different organizations work together. Although the concept of shared office space turned up only a few years ago, it has become so integrated into the work industry that it is impossible to imagine the business without it.

Companies are increasingly adopting the emerging trend of shared office spaces all over the world. Some of the factors like the gig economy, widespread start-up culture and invention of remote work apps like Slack have led to a rise in their demand and has compelled companies to look for shared office space for rent. But does that mean shared office spaces are right for your business? Here are some pros and cons of shared office spaces that every company should look out for before setting up their business.

Pros

 

• Cost-efficient: If you are a freelancer or an entrepreneur looking for a dedicated desk or private office, then shared office spaces are what you should consider. Shared office spaces allow you to pay for only the space you need and help you to scale at your own pace without the pressure of traditional long-term leases.

 

• Enhanced flexibility: The most obvious benefit of shared office space is the flexibility it offers in various areas: 

1. There are no yearlong lease requirements associated with shared office spaces. The rent needs to be paid only monthly.
2. Shared office space does not involve any upfront fees or deposits and gives founders a valuable opportunity to keep their costs down.
3. They give you the freedom to elevate or scale down your team size as per your needs.  

 

• Opportunities to network with like-minded professionals: Being a freelancer or entrepreneur can be very difficult when you do not have a sense of community. Shared office spaces give you the freedom to work all by yourself in the presence of employees from various organizations. Shared office spaces offer you the opportunity to introduce yourself to like-minded individuals that can serve as resources to help expand your business. 

 

• Access to key players and partnerships: Working in a shared office space allows an employee to gain access to key industry players to help your business grow. Carrying out operations amidst start-ups makes you more likely to attract the attention of angel investors. 

 

• Unparalleled amenities and services: Shared office spaces offer exceptional amenities and services like: 

1. High-speed WIFI
2. Comfortable furniture
3. Meeting rooms
4. Conference halls
5. Onsite assistance and support

 

• Diversity: In contrast to traditional offices, coworking spaces consist of employees from a wide range of companies. It helps them gather insights and collaborate with similar professionals. 

 

Cons

 

• Distractions: Shared office space allows employees from different organizations to work together. The employees have to face many distractions, and this leads to a decline in their productivity. In a room where everyone has a different job, one might find himself/herself distracted by others.

 

• Hours of operation: Setting up a business and running it takes a lot of time and hard work. A team working for a start-up may work for long hours. However, most of the shared office spaces shut down at 8. Hence, employees working beyond regular business hours might face problems working in a shared office space.

 

• Reduced privacy: Shared office spaces are noisy and can hamper an employee’s concentration. Moreover, there are times when an employee needs his/her own space to get the work done. These facilities are not available in shared office spaces, and hence, they result in a lack of privacy. In addition to this, there are several projects which require security and shared office space is not the place to discuss them.

 

• Lack of customization: One of the essential benefits of having your own privately leased office is branding it. The walls, furniture as well as lighting can be customized as per your needs. However, in the case of shared office spaces, customization is not possible.

The concept of shared office spaces is gaining momentum. India also sees a rise in shared office spaces in Bangalore with an upswing in their demand. However, these offices can have both positive and negative impacts on your employees and work environment. Irrespective of their growing popularity, they might not be the best fit for your business. Hence, it is imperative to keep the pros and cons in mind while considering a shared office space to set up your business.

The Rising Popularity of Shared Office Spaces

The trend of shared office spaces was almost unheard of in 2007, but since the past few years, collaborative workspaces have become popular with the emergence of millennials coming into the workforce. They are opposing the need to obey traditional office structures, demolishing 9-5 mindset, breaking down the typical corporate hierarchies and are reformulating business norms. Many millennials are becoming entrepreneurs, setting up their own start-ups and are shaping the trends of how and where we work. 

However, the rise in the popularity of shared offices is not entirely dependent on millennials. There are various factors making coworking spaces, the perfect fit for those who are looking for efficiency over tradition.

What is Shared Office Space?

A shared office space also known as a coworking space is a collaborative workspace where SMEs, freelancers, and entrepreneurs can enjoy the benefit of a well-furnished and equipped office space without having to commit to a long-term lease and the hidden costs it involves. The members of a shared office usually need to pay on a monthly basis to gain access to amenities like private working space, meeting rooms or special equipment.

The Executive Centre (TEC) for example, is a high-end, exclusive business centre offering unparalleled amenities and services to meet your business needs. All of its coworking offices in India such as the shared office space in Chennai are equipped with a productive atmosphere, state-of-the-art infrastructure and unmatched business concierge services, providing an elevated and flexible working experience.

Why Millennials Prefer Shared Offices?

Cost-effective: Start-ups and developing businesses do not have the funds to buy or rent an office space, making them inclined towards an effective solution. As opposed to traditional office spaces involving huge costs and long-term contracts, shared office spaces are a lot cheaper and generally require payment on a monthly basis. Therefore, more individuals prefer to go for a shared office space for rent rather than renting traditional office space to uplift their business.

Minimal responsibilities: Setting up a business in a coworking space means fewer things to worry about. Things like the pantry, furniture, cleaning, and maintenance are taken care of by the serviced office owner. This is one of the main reasons why millennials prefer renting over ownership.

Access to networking: Shared office spaces offer a productive environment with professionals from different backgrounds sharing one common roof. This not only helps in the sharing of ideas but also sparks creativity and innovation. Moreover, it serves as the perfect place for people to connect with like-minded individuals and widen their network. 

The Executive Centre’s coworking offices such as the shared workspace in Chennai is home to a pool of talented individuals who frequently interact with employees from different start-ups and thus, enhance their personal as well as professional relationships.

High-end amenities: Coworking offices are not just spaces to set up a business. They offer you much more. Some of the top-notch shared offices provide world-class amenities compared to the traditional ones. Be it high-speed internet services, modern resources to ensure smooth flow of operations or pleasant and cosy interiors to impress your clients, all these services will be offered right away, as you step in.

The Executive Centre’s serviced offices such as the shared office space in Bangalore has a distinguished address and is equipped with top-grade facilities required to empower your business.

Prestigious locations: According to a recent survey, it has been found that most millennials prefer to live in urban areas where essential resources like medical stores, grocery shops, restaurants and so on are easily accessible. Shared office spaces generally occupy distinguished locations of the city, making them a perfect fit for millennials. Due to this factor, millennials look for shared office space for rent in Bangalore, Mumbai, Gurgaon and so on, keeping in mind their desire to grow professionally in a city.

As a result, despite drawbacks like distractions, inability to customize and lack of privacy, shared officespaces are rapidly becoming the millennials’ dominant choice for a place to work.

Top Shared Office Spaces Myths

From startups to major businesses, having the right office space that checks all the boxes is a challenging task. In the previous decade, shared office space was a new and economical option for many companies. In recent times these office spaces are picking up the hype and have surged in popularity. 

As a matter of fact, many people are actually preferring shared office spaces rather than generic private space, for countless benefits that it brings to the business and employees. These kinds of spaces are known to bring out the best of employees while helping them experience a vibrant professional setting.

But some people still have their doubts about this modern professional setting. Some might even argue that an office that is shared is bad for the business and brings morale down. These preconceived notions can cause any upcoming business a fortune. 

Before you go and spend a large amount of funding for private office space, let us list down and bust all the myths of taking up a shared office space for rent. In this article, we have debunked the false notions about shared office spaces. 

1. Shared office spaces are too noisy and unproductive 

Oftentimes you would hear people compare a shared office space with a coffee shop or a crowded classroom. This is certainly not true. The only similarity a shared space has to a coffee shop is that the abundance of coffee.

Coworking spaces like these have a good number of open workspaces and private workspaces. All of this depends on what kind of business prefers which type of space. In a way, shared office space is just a large catalogue of different types of offices and rooms that suit any and every business. 

Also, many studies suggest that people tend to be more productive and energetic when they socialize and work together, so shared office spaces actually increase the morale and productivity of your employees. 

2. Shared office spaces seem unprofessional 

Serviced office spaces or shared office spaces are well equipped to be hospitable to any and all clients. These spaces have a specific set up that takes care of client visits, meetings and conferences, and other recreational activities. Generally, these spaces will at least come with meeting rooms, conference rooms, minimum amenities like coffee, recreation rooms, and a cafeteria.  

Spaces like these have a very attractive and professional business setting that will surely fascinate any client that comes to you. 

3. Coworking spaces are for start-ups and freelancers 

Sometimes these office spaces may portray a flexible and rather raw environment, best suited for upcoming companies and start-ups. The flexibility of such spaces makes it seem that freelancers and unbothered young professionals might thrive in this environment. That is true to an extent. A flexible office space does give you freedom, unlike private space. 

But even large companies love flexible settings and work routines that help them feel at their prime in such an environment. All the amenities, rules and regulations align with a professional space. So a shared office space experience is fun and better for your business. 

4. Coworking spaces are for techies 

Many tech companies have started using sharedoffice spaces. But this does not mean that these kinds of serviced spaces are for that niche crowd. The setting and environment of these spaces are built for any company that is not shy to cut expenses while exercising the flexibility of such an environment. Any company can adjust well in a shared office space, which helps their business grow.

As long as the company has a strong professional network, dedicated employees, and a vision to make it, coworking spaces will be the best option. 

Conclusion 

Yes, private office spaces may have their own perks, but shared office spaces are where you are part of a larger community rather than just your company. These kinds of spaces help businesses make contacts while teaching them a thing or two about management. So if you are thinking of getting your own serviced office space in India, then do not think twice.