New Share Economy Report From Kinglet Explores Cultural & Economic Trends Driving Growth of Coworking and Shared-Office Industry
BALTIMORE, MD / CRWEPRESSRELEASE / September 22, 2015 /Entrepreneurship has played a significant part in America’s improving job situation. The continued growth of startups and small businesses across the country directly affects the need for flexible office space, as outlined in a new report titled “Inside the On-Demand Office Ecosystem.” The report, published by Kinglet – an online platform that matches businesses and individuals with the right workspaces, details the state of the coworking and flexible office landscape and includes a breakdown of the business sectors currently using shared office spaces. Kinglet released its report in conjunction with the company’s one-year business anniversary.
As cited in the Kinglet report, on-demand office space is not just a draw for entrepreneurs, 1099 workers and early-stage start-ups. These work environments also provide opportunities for more established businesses to save on overhead while providing employees with top notch amenities, convenience, and turn-key move in. Cost is also a major factor when choosing office space, and as rents escalate – in many markets passing pre-recession peaks – companies of all sizes are seeking flexible rental space without having to commit to an extensive lease.
“On-demand office space is the fastest growing trend in work culture in the last decade,” said Alex Kopicki, CEO of Kinglet. “With the number of coworking facilities growing from five in 2005 to over 2,000 in 2015, flexible office space has evolved into a cultural trend that is transforming both the way people work together and their expectations for their working space.”
While location and price remain important factors in choosing an office, the emotional connection to the space is increasingly significant – according to Kinglet’s report. Today’s companies want to work in spaces that feel good, and employees no longer have to compromise to fit into the space they’ve been assigned. Now, they expect a flexible office ecosystem to adapt to their needs. According to a 2015 Price Waterhouse Cooper’s report on emerging trends in real estate, “the live/work/play theme is not just hype.” There is data to support it, and it is a powerful trend for offices and an important consideration for companies who choose to sublease space within their own offices.
The report also points to a maturation beyond “traditional” coworking facilities. While the entrepreneurial set is attracted to the social and networking aspects of coworking, many of the more established start-ups and small businesses are looking to solidify their own identity outside of these communities. While connections to like-minded businesses remain an attractive value-proposition, a desire to strengthen one’s own corporate brand often leads companies out of traditional coworking environments and into flexible workspace. On-demand office ecosystems offer the amenities, proximity, efficiency and low overhead of coworking along with options for privacy, quiet and less emphasis on pre-baked social elements.
Other highlights from Kinglet’s report include:
- Kinglet users by industry: financial services, legal, tech, consulting, design, nonprofit and associations, brokerages, designers, marketing and PR firms, real estate.
- Kinglet users by business type: 30% small businesses, 20% freelancers, 20% nonprofit businesses, 15% consultants, 10% startup businesses, 5% entrepreneurs.
- Average stay of a Kinglet guest with month-to-month flexibility is 9 months.
- Average desk price: $282/month. Companies will pay a premium for the flexibility of shorter-term offerings and option of expanding office footprint on demand.
- Office space is no longer just a commodity. Office environments are a heavy influence on corporate culture, employee recruitment / retention and brand identity.
According to a new report from the Global Entrepreneurship Monitor, there are more than 27 million working-age Americans – nearly 14 percent – starting or running new businesses. With downtown office vacancy rates at the lowest since 2007, coworking facilities and on-demand office spaces are a natural fit with the urbanization trend that’s occurring in the United States.
Kinglet provides corporate sublets through a commercial real estate platform that has transformed the way that businesses find office space. The company uses a share economy model to connect small to mid-sized companies looking for flexible, short-term office space that fits their operating budgets and immediate business needs.
Kinglet has partnered with the commercial real estate community to provide a more efficient way for brokers, property managers, owners and companies with extra space to service small tenancy while boosting operating income. Using Kinglet’s proprietary technology platform, the commercial real estate industry is able to quickly and efficiently fill vacant space using hassle free space management with automated payment processing, standard agreements and straightforward cancellations.
Kinglet is currently servicing the Baltimore and Washington DC markets with plans for expansion into Philadelphia and New York in 2015.