Coworking on the verge of crisis – decided to work during the quarantine

Коворкинги на пороге кризиса - решили работать во время карантина

Residents of coworking allowed to take the furniture home at the time of the quarantine.

The market capital of coworking on the verge of crisis. The timing of commissioning of new facilities are deferred at least for a few quarters.

According to a study by the international consulting company Colliers International, in just the last three quarters of the coworking market in Kiev has grown by at least 22% by volume of the occupied areas.

However, after a long boom in the development of the market faces a risk of entering into crisis, analysts say.

Statistics coworking in Kiev:

  • the total number of locations – 44;
  • the number of operators is 26;
  • the total area of the Kiev coworking – 75 000 sq. m;
  • the share of coworking in the structure of demand for office space (as of 2019) – 8%.

According to the study, the vast majority of operators start their work in the last 5 years. Despite the fact that the market has about 26 operators, 67% of the capital market is under the control of the key players:

  • IWG (in Ukraine represented by such brands as Regus and Spaces);
  • Platforma;
  • Creative Quarter;
  • Creative States;
  • NewWork;
  • Chasopys;
  • Tceh.

During the quarantine, most operators continue to work. Among the 15 respondents of coworking, more than half (60%) continue to fulfill their obligations to their residents. However, the access of non-residents, as well as the event suspended.

Among the operators who were forced to completely close the coworking, the vast majority – a small space or those companies that coworking is not the main business.

According to the representatives of the market, during the quarantine, the occupancy rate of facilities has declined substantially. Basically, I visit coworking residents who rent mini-offices.

But to maintain customer loyalty with discounts or temporary free services can afford not all operators.

A package of measures, recently adopted by Parliament does not provide benefits for business centers in the form of rent exemption.

Consequently, owners of coworking, too, no one is free from duties to pay each month for rent.

Concessions can except to those partners with which we cooperate and which have signed long-term leases.

Coworking for yourself at times too ready to meet their clients, giving them the opportunity to reduce their rental costs by downsizing of the offices that they occupy.

Alternative discounts may be the use of special additional services during the quarantine. Operators offer residents take advantage of the furniture of coworking to organize your workplace at home.

In parallel, operators are looking for ways to reduce their operating costs. By the way, a considerable part of them has already fallen naturally. After all, the fewer residents in the office, the less necessary supplies.

In addition, the majority of employees now work remotely, and in some coworking was only the minimum staff necessary to maintain the living quarters.

Some players are introducing new services to maintain positive cash flow.

For example, Creative States organized the delivery of food for its residents. And Creative Quarter focused on the development of the trends of IT-outsourcing.

According to analysts, the easiest crisis period will be operators that focus on the corporate sector have adequate financial strength and profitability to maneuver.

Коворкинги на пороге кризиса - решили работать во время карантина