Is a Coworking Space Worth It? Exploring The Pros & Cons [2024]

Coworking spaces have become one of the most desirable workspace solutions in the last couple of years, as traditional offices begin to fall out of favour with everyday workers.

In 2022, the coworking/ flex space market in the UK grew by 22%, with most real estate experts predicting that the demand for coworking spaces will continue to accelerate this decade.

Occupancy levels of coworking spaces and other flexible spaces reached record high levels of 83% by 2023, illustrating that these spaces are surging in popularity.

As thousands of businesses, freelancers, and startups turn away from the traditional office, you may find yourself wondering if having a coworking space as your dedicated office is right for you. 

In this article, we will explore the advantages and disadvantages of coworking spaces, helping you decide once and for all if these flexible workspaces are right for you. 

Unveiling Your Work Personality

Before diving into the facts about coworking spaces, it’s important to consider what kind of worker you are and in what environments you and your work have thrived in.

What do you actually need in an office space?

This question surprisingly puzzles many people, as many workers never had much of a say in their work environments until the pandemic. Now that businesses across the globe have switched to seeking spaces that meet employee needs, this question has become critical for businesses to consider.

If you’re unsure where to start, consider the following questions:

• How many employees do you need desk space for if you run a business?
• How often will you use meeting rooms and private offices to make phone calls, have private discussions, and brainstorm ideas with the team?
• What services and shared amenities, such as office equipment, do you and your colleagues need?
• Do I actually need an office space, and is working from home right for me?

Once you’ve listed your requirements and gained a greater understanding of your needs, you can start to discern whether a coworking space is worth it.

Related: Coworking Space Amenities: A Guide to Productivity and Comfort

The Pros of Coworking Spaces

Combatting Isolation

One of the biggest challenges faced by workers during the height of the pandemic was increased levels of loneliness and social isolation. This was particularly detrimental to those who relied on professional networking and community events to fulfill their social needs.

One of the many benefits of coworking spaces is their ability to bring people together in a shared office where they can network with like-minded individuals. This is especially valuable for freelancers and entrepreneurs who may have been remote workers in the past.

Access to networking opportunities, community, and social events between different companies in a shared office space means you can connect with people in similar or various fields of work. Despite not working for the same company, these coworkers can be a resource you can tap into when you need expertise or help in an area that’s not your strength.

Increased Productivity

Coworking spaces are known for boosting the productivity levels of workers no matter what industry they work in. They are specially tailored to help people thrive in their jobs.

Because they are designed to be shared office spaces, coworking space providers curate their spaces to accommodate different working styles to suit all workers. For example, a good service provider will have plenty of meeting rooms and private offices that workers can utilise if they require peace and quiet.

Working in the optimal environment for you allows you to complete tasks more efficiently and to a higher standard than you otherwise would have.

Additionally, most coworking spaces offer administrative or technical support as part of their amenities, allowing workers and businesses to outsource tedious and time-consuming admin tasks. This allows workers to spend more time on their more important duties, enhancing their productivity levels.

Flexibility

Coworking spaces are prized for their flexible working conditions, making them ideal for those who don’t want to be restricted by long-term rental leases or fixed office hours.

Since coworking spaces tend to offer multiple membership plans, you can decide what terms you commit to, suiting those who don't want the long-term leases of a traditional office.

A good coworking space is also adaptable to all your needs, whether you and your team need 24/7 access to the office or if you need to add or remove desks for scalability. When you choose a coworking space, you’re in an environment that allows you to work comfortably, efficiently, and on your terms.

Amenities & Resources

One of the most advantageous pros of utilising coworking spaces is the access to a wide suite of amenities and facilities that are included in your membership. These amenities range from small things such as unlimited office supplies and complimentary morning coffee, to accessing printing services and luxurious facilities such as dedicated fitness rooms. 

This eliminates the need for individual companies to invest in these resources they would’ve otherwise needed in a traditional office, reducing overhead costs.

Potential for Collaboration

The open and dynamic atmosphere of coworking spaces encourages collaboration within the team, leading to increased interaction and brainstorming to develop new ideas and develop solutions to any problems that arise.

There’s also ample opportunity for cross-pollination of ideas when you’re surrounded by those working for other companies as you’re exposed to individuals from diverse industries and different perspectives.

Overhearing conversations or simply networking with colleagues from different fields can spark unexpected connections and creative problem-solving.

The Cons of Coworking Spaces

Cost

The ongoing membership cost of coworking spaces can quickly add up for workers or companies that operate on a tight profit margin.

Although they enjoy flexible leasing terms, membership fees can vary from anywhere from a few hundred pounds well into the couple thousand-pound territory. Prices depend on the location, amenities offered, and the type of services you use, with the costs of hot desking proving to be cheaper than having dedicated private offices. The fee charged by most coworking space providers usually covers rent, utilities, high-speed internet, access to shared office equipment and meeting rooms.

In the UK, the average price for a hot desk in a coworking space is £203 per month, but this price point will get you very different amenities based on the provider.

When considering these costs, it’s easy to understand why working from your kitchen table or coffee shops is often utilised by entrepreneurs and sole contractors. These can be exponentially cheaper but also come with their pitfalls.

Operating from home or coffee shops presents a lack of credibility as a business. Consumers prefer companies established in a reputable location, which also mitigates privacy concerns as you don’t need to use your own address.

We recommend using a virtual office if a coworking space is too costly for your business.

Potential for Distractions

Whilst sharing the same space with other businesses is beneficial for collaboration, one of the key drawbacks is the potential exposure to distractions.

This results from open-planned office spaces, which are prone to noise and bustling with activity.

Noise such as chit-chat, loud printers, and constant phone calls may be detrimental to your focus levels, leaving you less productive and with more work on your plate. You can tackle this by selecting a coworking space with private phone booths and one that follows a culture of being respectful of your neighbours.

Lack of Customisation

Although coworking spaces are tailored to meet you and your business needs, this comes at the cost of less control over your spaces than you would have in a traditional office.

When you occupy the same coworking spaces as other companies, you cannot showcase your branding, logos, and marketing materials in the office space, which can be annoying for those who may need to occasionally host clients and other visitors.

However, you can accomplish a happy medium by selecting a coworking space provider, such as Servcorp, that has unbranded floor space. 

Security & Privacy Concerns

Although most companies and contractors can benefit from the facilities that coworking spaces offer, the level of privacy and security may not be sufficient for some to make them a viable alternative.

The open nature of shared offices may pose a security risk for those working with sensitive data or confidential industry information. If you’re a lawyer working on a high-profile case, you’ll need to be mindful of those working around you so that no evidence or information is potentially compromised or exposed to external parties.

Different service providers offer different levels of security, so it’s important to consider this when searching for a coworking space. A quality coworking space should include great IT solutions, cybersecurity, and team support to address any security concerns. 

Coworking Space vs Coffee Shop: Which is Right for You?

Determining whether a coworking membership is worth it greatly depends on what you want for your office environment. Taking all of the above into consideration, there are a few crucial questions you’ll need to ask yourself:

• Do I need regular access to reliable internet, office equipment, and other facilities that I don’t have at home?
• Do I need a dedicated space or can I be productive in any environment?
• Will I benefit from being in an environment surrounded by other workers, even if they aren’t on my team?

Whilst the best option is the one that best supports your productivity and well-being, the benefits of coworking spaces far outweigh those of working in coffee shops or from home.

Not only are they better for your overall work-life balance, but the social aspects, increased focus, and access to amenities make the costs of a coworking membership well worth it. Working from a cafe or library can also pose a serious cybersecurity threat, as they do not have technology in place to protect their internet bandwidth.

Finding the Right Coworking Space for You

If you’ve decided that coworking spaces are the right choice for you, there are many considerations you need to be aware of when choosing your ideal coworking office. These factors include:

• Location and what’s close by
• What amenities and services do you and your team need
• How often you plan to use your coworking space
• Membership fees and prices
• The overall community vibe
• If you plan to use your coworking space as your registered or corporate office

Have you ever wondered, 'Are Coworking Spaces Tax Deductible?' Find out today!

One of the benefits of coworking spaces is that you can try before you buy. Some providers offer visits to their spaces, allowing you to have trial periods to see if it's the right office space for you.

Before committing to your coworking membership, try out the office first to see if it meets your expectations and requirements.

At Servcorp, we are the workspace solutions experts who offer the highest-quality amenities and facilities when you choose our coworking spaces. With prestigious locations in the UK and over 150 offices globally, we offer a wide range of coworking and flex workspace memberships that meet the needs of freelancers, small businesses, and large corporations.

Check out the best coworking spaces in the UK.