Press comment for Financial Times

January 2016

Comment from Shaun Baker, Creative Director at Oktra: “The perception that co-working spaces have become the work / plaything of the millennials has proven to be inaccurate. Surveys conducted on co-worker demographics identified that the average age of the user was 34, two-thirds are men, one third are women, more than half of all co-workers are freelancers, and almost 20% are entrepreneurs who employ others.

“Co-working has become much more than a trend; it is the inevitable outcome of the advances in technology and the freedoms they allow. Most suitable for start-ups and one man (or lady) bands, co-working arenas have evolved into multifunctional, vibrant and efficient spaces.

“In today’s fast-paced marketplace, some business models have no requirement for a fixed address, restrictive infrastructures or data processing centres. The advent of cloud computing has liberated an ever increasing number of new business start-ups from the restrictive outlay and shackles of a non-flexible lease arrangement, with flexibility being the key word. The speed at which a business needs to react to a market situation has increased alongside the speed of computer processing power and customers’ shorter, and it would seem instant, response expectations.

“Property costs are typically a business’ second largest overhead after staff costs, and since mid-2009, office rents and business rates costs have risen significantly above the rate of inflation. Work models and patterns are changing and the old floor area to worker metrics is no longer applicable or relevant. As a fledgling business, the difficulties of trying to assess potential space requirements and the hidden start-up costs such as furniture and telecoms are a huge and costly gamble, and the flexibility of co-working space negates getting locked into a potentially restrictive situation that would impact the ability to adapt and change.

“When you breakdown a traditional lease office arrangement, the average yearly cost of a desk per person in central London equates to £12,000. In isolation, the monthly cost of a desk within a co-working space may appear quite high at £250-£450 per person, but compared to the option of a building lease, furniture purchase, telecoms and rates it’s far more affordable, and as a member of the co-working organisation you also get to utilise facilities at other locations with business support included.

“At a time when a business needs all the help it can get, the allure of being situated ‘cheek by jowl’ with like-minded and sympathetic organisations is understandably a strong draw. Now more than ever, it seems, people are buying from people and being able to converse face-to-face has huge benefits and could be the difference between success and failure. Communication has been a buzzword in the office design world for a long time, and co-working spaces are no different.

“The negative side to co-working space can be the lack of quiet concentration facilities. This is not true of all, but certainly these zones will be few and in high demand. The business model of headcount to floor area would mean that it’s illogical for the operator to create too many of these types of facilities as the headcount would be significantly reduced, and therefore rents would need to be increased. This is where the older serviced office model has an advantage, where it is possible to hide within a partitioned enclosure and shut a door. Co-working space also lacks the gravitas that some industries or businesses of a certain size are required to promote in order to secure work, and of course you are beholden to the manners and general housekeeping of your landlord and cohabiters.

“It’s important to note that not all co-working spaces are alike. Some more enlightened operators have taken the time to investigate the marketplace and offer a much more grown up solution without the Google-esque frivolity. They offer a varied menu of concentrated working and collaboration spaces that sit somewhere between serviced and mainstream office. On top of the physical environment, these operators also offer regular in-house events and business support to further assist and enhance the working experience and networking opportunities.”