Innovative Professional Offices (www.InnovativeProfessionalOffices.com), a top provider of executive offices and support services, is commenting on the growing trend of major companies and firms opting for shared office spaces.
In the Los Angeles area, several major businesses and firms are switching to shared offices, leasing space in these new co-working environments. According to the South Bend Tribune, some of the businesses leasing co-working spaces include legal firms, real estate development companies, and financial companies with over 8,000 employees worldwide. (Source: Khouri, A., “Large firms find shared office space can fit needs,” South Bend Tribune, May 2, 2016; http://www.southbendtribune.com/news/business/large-firms-find-shared-office-space-can-fit-needs/article_47d3e036-b5ac-503d-974b-d429d3abf5c4.html.)
“Co-working spaces are becoming a big trend in the workplace,” says Eshai Hirshberg, director of Innovative Professional Offices. “They’ve been used by tech startups and entrepreneurs for years, but we’re starting to see more established businesses embracing these shared offices. Companies are realizing there are a lot of benefits to using these offices.”
Co-working spaces allow employees from different companies, as well as freelancers and entrepreneurs, to share an office environment. The spaces emphasize collaboration, networking, and greater freedom, allowing employees to collaborate with other workers and alternate between working individually and in groups.
“There’s been a lot of research showing that collaboration can produce better results,” says Hirshberg. “One of the reasons why start-ups have made use of co-working spaces is because innovation is particularly important for them. For businesses looking to increase productivity, the workspace they use can have a big impact.”
However, in the LA area, where office rent can be fairly high, companies are taking advantage of the short-term leases that co-working spaces offer. One report estimated that a company with 10 employees would save anywhere from $13,000 to $45,000 annually by using a shared office.
“Startups often don’t have the money for long-term leases, which is why they’d use these spaces,” notes Hirshberg. “However, the reality is that no business wants to spend money if they don’t have to. Using a co-working space is one way to really reduce your business’s expenses.”
Even with the short-term lease and attractive rates, most co-working spaces feature a range of amenities and services that would otherwise be unavailable or costly for businesses. These can include access to kitchen space, lounges, and entertainment options for employees.
“These spaces often particularly appeal to Millennials,” says Hirshberg. “For businesses that want to attract Millennial workers and tap into younger labour forces, using these shared offices is one way to give your business an edge.”
While co-working spaces have typically been seen as a temporary environment, the South Bend Tribune article notes that more companies are now starting to sign multi-year leases. Some businesses are choosing to make shared offices their permanent home until they experience further growth.
“You’re going to see more businesses using these spaces in the years ahead,” says Hirshberg. “There are very few downsides for businesses, so everything is suggesting that this trend will continue.”
Innovative Professional Offices offers flexible arrangements for companies looking for training seminar rentals, office rentals, and administration services.