How Are Large Organizations Taking Advantage Of Coworking For Expansion?

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Coworking spaces are a boon for startups and small businesses. They are cost effective, flexible, and allow people from diverse backgrounds to congregate and collaborate with each other to resolve business and social challenges of the day. These benefits gave rise to a spike of coworking office leasing from 8 percent in 2018 to 14 percent in 2019.

In recent few years, larger companies too, especially in the tech industry, have started identifying the benefits of operating in a coworking space. In fact, a survey conducted by a real estate firm showcased that 40 to 45 percent of demand came from large firms. This demand for coworking office lease was followed by the SME sector at 35 to 40 percent, and interestingly the demand from start-ups came at just 15-25 percent.


Large corporations are able to network and tap into a rich talent pool to making collaborations and acquisitions, flexibility of operations, reduced overhead cost.

Let’s deep-dive into how large organizations are taking advantage of coworking for expansion:

  1. Talent and Innovation

Coworking spaces offer easy access to talent and innovation. So, it allows large companies to stay closer to the action and initiate strategic acquisitions with potential industry disruptors. Cowork spaces also help corporate zero down on possible acquisition targets in the future.

  1. The Coworking Trend Survives COVID-19 Better

With flexible workstation options and lower CAPEX investment requirements over traditional offices, coworking spaces have helped businesses save on cost.

  1. Flexibility Options

Work from a shared office space offers great flexibility when it comes to testing out a new location and operational hours. For instance, if a business needs to work on a special project that requires setting up a satellite or remote office, it is convenient to choose a coworking space than to lease for a fixed amount of time. Similarly, if a company finds the location of a particular coworking space suitable for their needs, it gives them an opportunity for expansion as well.

Even the company employees can now opt between working at a head office or operating from a convenient location.

  1. Low Rental Cost

Thanks to coworking spaces, large corporations can save on their operational costs, opportunity cost, and also rental cost. They also spend less on internet, furniture, reception, housekeeping, and other office facilities.

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