The Atlas Insider: The rise of co-workingAugust 4, 2017
The rapid explosion of co-working is borne by the figures – WeWork, a pioneer of shared workspace with over 100,000 members, is currently valued at around $20 billion, despite only being founded in 2010.
WeWork’s success story and fast-paced expansion continues, having recently taken 80,000 sq. ft. of commercial space within Provost & East, to the rear of The Atlas Building in London’s Tech City. This move is symbolic of the growth of the sector. Globally the number of co-working spaces has increased at a compound annual rate of 13% over the past decade, tripling in size, according to research by The Instant Group.
However, this rise in co-working and its local presence is a good indicator of an area’s economic vitality and it brings economic benefits. Indeed, London’s Shoreditch is thriving. Co-working has helped to bring new people to the area, and with it, the opening of new bars, restaurants and amenities.
Demand for homes in Shoreditch has increased in line with this trend. Figures by property agent, JLL show that prices for residential property in the three years from the end of 2011 to the end of 2014 have increased by 48%. Further research from JLL, reveals that rents have also increased in the area. City Road, along which The Atlas Building lies, can achieve an average rent of up to £1,075 for a three-bedroom apartment.
With the growth in co-working and its driving forces expected to continue in the long term, areas such as Shoreditch are anticipated to continue to benefit.
Key drivers behind the growth in co-working:
- Freelancers -
- A cohort of the workforce that has grown 14% in the last decade are one of the main forces behind the co-working boom
- Start-ups –
- Young companies and entrepreneurs that want workspace that is as flexible and mobile as their business
- Large corporations –
- Taking flexible workspace to replicate the dynamic and creative environment of start-ups and encourage innovation
- Fintech –
- London’s Tech City is also the world’s capital of FinTech, employing 50,000 people. Barclays has launched Europe’s largest fintech co-working space in Shoreditch and KPMG, one of four global auditing giants, has taken up satellite co-working spaces to its main buildings in London and New York.