Independent UK Coworking Spaces joining forces to fight downturn

With Covid-19 still very much in the consciousness of the general population around the UK, one industry reeling are coworking industries.

Even as some coworking spaces reopen, with many in imminent danger of being forced to close.

One proposed solution? Join forces to negotiate better rates and government assistance.

The New Campaign by Independent Coworking Operators

Coworking companies are in a precarious position. To ensure the safety of their own employees during the pandemic, services to tenants were substantially reduced as their shared spaces started to reopen. However, the reduction in services did not come with a reduction in rent for tenants.

“Coworking spaces aren’t getting business relief rates, but we’ve still got costs,” says Shazia Mustafa, founder, and CEO of Third Work. Third Work is a coworking space company based out of London. Mustafa said in a call with Allwork recently that landlords are still sending bills for rent, even though there are no business revenues coming in. 

Mustafa is encouraging coworking spaces to join together to get government relief that would help their companies. The #saveourlocalcoworking campaign drives this encouragement.

Mustafa is part of the UK Coworking assembly, which created the initiative and has created the push to get it the attention it needs.

The initiative is calling for the UK government to support the following policies, among others:

• Qualifying coworking spaces for the 12-month Business Rates Relief.
• Extending the RHLG scheme to certain coworking spaces workspaces.

To support the initiative, visit saveourlocalcoworking.co.uk and sign the petition.

Importance of coworking communities coming together

“We need more people on board to make our voices heard,” Mustafa stated.

“Our spaces are so valuable to local communities and small business owners. A louder voice will show the government how important our coworking spaces are, and in return, we'll get the support we need to see us through."

Relief from the government would allow spaces to offer tenants flexibility to adjust rent prices until operations are back at full speed for the companies that rent from them.

Without intervention, coworking spaces could close for good, leaving a hole in commercial real estate markets worldwide. As of 2018, coworking spaces took up 11.5 square feet of commercial real estate in London alone. Another 3 million was slated to open in 2020, but some are delayed due to the pandemic.

Experts are optimistic about the long term survival of coworking spaces. They simply need temporary relief to help them get through the current crisis. George Chiang, an industry expert summed up the future this way:

“With millions of people working remotely for the first time, a new generation of coworking spaces is perfectly positioned to capture that new market.”. 

Value of coworking spaces to the economy

Coworking spaces provide a place for individuals and companies to work without paying for their own office space. Instead, companies share the area and the expenses. Coworking spaces originated as places for entrepreneurs and freelancers to have workspace outside of their homes. Over time, the demographics using these spaces have evolved.

Over 50% of those using coworking spaces currently were members of companies with less than 100 employees or startup companies. Freelancers are now less than 20% of those who use coworking spaces.

Coworking spaces are terrific for smaller companies or startups since these spaces allow businesses to share the expenses of office space. Rent can take up a large amount of a company's budget. The shared costs help more businesses thrive and have a chance to succeed.

Coworking spaces help build a sense of community between the workers who share the space. Almost 1/5 of people in the UK report feeling lonely. These spaces can work to combat the loneliness epidemic workers can feel when not based in a traditional office setting. 

Summary

Coworking spaces have not been eligible for several of the relief programs offered by the UK government during the pandemic. To draw attention to this oversight, many are starting to come together and draw public attention to this issue.

To learn more about Mustafa's campaign, visit saveourlocalcoworking.co.uk or search the hashtag #saveourlocalcoworking on social media.