In an age of disruption, almost all conventional sectors have undergone a complete transformation in business model. Ride sharing apps such as Uber have revolutionized the transport sector while Airbnb has done the same in the accommodation services industry.
It seems like office space is also getting a makeover. Modern day notions of work especially amongst millennials are different than older generations. Many millennials are ditching conventional jobs to work for or create start-ups and have flexible work arrangements.
However, demand for co-working spaces has expanded beyond the startup-scene to host larger corporations as well. Renting out serviced office space to both larger companies as well as startups is the new hybrid model that is driving growth in the office space sector.
The benefits are not limited to just flexibility. It is a fresh way to look at almost the entire experience of how an office space should be. The design of collaborative or flexible workplaces ideally promotes knowledge sharing and innovation. Indeed, the user experience is meant to include an open workplace where partnerships are built and ideas are exchanged amongst the users of the shared space.
One of the most popular examples of a co-working space company is WeWork. The US based company founded in 2010 reportedly raised funding at a staggering $47 billion valuation last year. The company has grown exponentially over the years and now and has collaborative office spaces across 562 locations around the world. It is now going to start a $3 billion fund with which to buy properties which will be leased to WeWork.
But the flexible work space concept has not only caught on in the West. India has also seen a flurry of activity in co-working spaces which has been spurred on by the presence of a gigantic tech industry and thousands of start-ups.
In Pakistan too, co-working spaces are catching on with some start-ups as well as larger companies looking to provide a shared office working space. The newest and probably biggest kid on the block is Colabs which is looking to emulate a WeWork based model and has recently opened its first collaborative workspace in Lahore.
The company’s first site is over 27,000 square feet and was previously a defunct textile factory which has been converted into purpose built shared working space which can accommodate close to 500 members.
Swiss based Regus which also has a large global presence in the co-working space and is listed on the London Stock Exchange has also been present in Pakistan for a while. Then there is the domestic start-up Daftarkhwan which has made good progress in its co-working space initiative.
The pricing plans for these collaborative work spaces differ according to the needs of the user which cheaper membership plans available for startups and smaller companies while doling out premium memberships for larger corporations.
As the digital age rushes on and workplace arrangements become more and more flexible, it seems co-working is likely to continue to reinvent the modern office space.
It is good to see local companies rolling out the concept in Pakistan which certainly is an attractive market with a millennial based workforce, an increasing number of start-ups and more companies looking to accommodate the flexible working needs of their employees.
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