Category: Coworking Europe

Aticco is one of those interesting coworking growth stories which tells us that there is place for independent big players aside of WeWork or Spaces. Aticco is a born and raised coworking firm in Barcelona; a 3 years old brand that has managed to open 6 coworking spaces, around 25.000 m2 all together and without VC investment. We have interviewed Franz Pallerés, the Co-founder and Chief Operations Officer of Aticco, to find out more about its story of success and his future plans. Franz Pallerés will also be speaking at Coworking Europe 2019 in Warsaw on November 13-15th.

Hi. Can you tell us about the story behind Aticco ? What is your positioning?

Franz Pallerés, the Co-founder and Chief Operations Officer of Aticco

Aticco was born precisely in another coworking space. I was the space manager and my two partners were clients there. Having both points of view, we realized that if we focused on customer service and excellence in the management needed, it was an improved model. From there we began to imagine the space we wanted to create. We found an incredible attic in downtown Barcelona and we found it to be the perfect place to start this adventure. The support and confidence of the first coworkers were essential for us to move forward. Three years later we look around and we are very proud of what we have built. Aticco are not just working areas. Together we have generated an innovative ecosystem where we collaborate, learn, and grow.

The support and confidence of the first coworkers were essential for us to move forward.

We’ve read that the Coworking offering in Barcelona grew by 23% just in the last 6 months of 2019. How do you explain the boom? 

Aticco, Barcelona

Barcelona has established itself as a business and investment hub in Europe. The arrival in the city of large multinationals proves it. It has everything a company (startups and corporates) wants: qualified employees, investors, fertility for growth, quality of life (climate, gastronomy, environment…), and good connections with the rest of the world. As a result, the demand grew in the last year and forecasts indicate that it will continue to do so. And on the other hand, coworking spaces are perfect to house these companies. Faced with the traditional real estate offer, we offer flexibility of growth without permanent conditions and take care of all efforts, design training activities, organize meetings between entrepreneurs and mentors, celebrate events to have fun and connect with other people… And all that helps companies focus 100% on their project, have more opportunities for growth because of the connections that are created and strengthen the bond of their workers and their motivation. That is why there is an increasing demand for flexible spaces in the market.

Are you accommodating startups and freelancers, mainly, or other tenants profiles?

We have always believed that the combination of companies of different sizes and structures benefits fertility and environmental connections. The diversity of business models increases opportunities for collaboration. For example, freelancers or small businesses exchange services with each other, and learn the financing and investment processes of startups; early startups see the development of those that are already in a high growth phase and can sense the following challenges that they will have to face; large structures need to inspire and retain the talent of their team and they get it through contact with other profiles that complement them.

Aticco, Barcelona

In recent months we have had an increase in large corporations that are committed to entering flexible spaces. And it is not just for the ease of management and the options to continue growing without rigid conditions. But because of the enrichment that gives them at the level of human resources and brand value, being within an innovative ecosystem.

Freelancers or small businesses exchange services with each other, and learn the financing and investment processes of startups; early startups see the development of those that are already in a high growth phase.

You grew from 1.000 m2 a few year ago up to 25.000 m2 and six buildings today. Did you simply benefit of the strengthening of the market demand or has it to do with a home-designed approach you had?

Aticco, Barcelona

When we started, our initial plan was 1,000 m2 and we dreamed of expanding to 2,000 m2 after a year. But the levels of occupation that we achieved within a few months indicated that there was a high demand and that the community also liked what we offered and the atmosphere of closeness and family there was. Our coworkers have been the best ambassadors of the brand. This added to the fact that the big operators had not yet arrived in the city, made us enjoy a certain advantage. And we bet on the constant growth although that made us assume many risks. It has been a mix of being in the right place, at the right time, offering quality service and constantly evolving according to market needs.

Our coworkers have been the best ambassadors of the brand.

You compete nowadays at the same levels in terms of size and number of members as the big international brands like WeWork or Spaces, who have locations in Barcelona. Your thoughts on that?

In the current context of Barcelona, that statement is a reality. Knowing that in terms of financing we are infinitely smaller, on a daily basis we compete with them in all fields. Both in target, as in the search for new locations, the commercialization of leads, the processes of HR… The resources we have are smaller but the end result, after much effort and dedication, is that we fight to convince the same audience and offer the same level of demand in our spaces. We have to be creative and resourceful to get it. And I think that makes us value more every lead that transforms into a new coworker. We are David vs. Goliath of the flexible spaces of Barcelona!

The resources we have are smaller. We have to be creative and resourceful to get it.

How about the funding. You didn’t raise VC money nor have you a big international company behind you, do you?

Aticco, Barcelona

3 years ago we raised 110 k of friends and family, and 1 year ago we raised 700 k in a small round led by different family offices in Barcelona, we don’t have VC money nor we are backed/owned by a real state company, we had profits since we opened 3 years ago and it helped us grow organically and maintaining control of our company.

Would you say that independent brands can play on the same ground as the big international coworking names in any city?

I personally think that the big brands are slower and therein lies the opportunity of the smaller operators. For example we have seen it in negotiations with buildings or potential customers. Our decision making is faster and allows us to take better advantage of the situation. Another important point is flexibility. Big brands work almost like franchises, where the same model that has worked in other cities is incorporated. That on the one hand is good, because the whole system is very automated, but on the other hand, changes or adaptation to the environment is worse.

The local operator always has an advantage because of the knowledge of the environment. But you have to know how to use it. And finally I think that the commitment of the workers, loyalty and motivation with the project, are easier to maintain in not so systematized structures.

Our decision making is faster and allows us to take better advantage of the situation. Another important point is flexibility.

What about your plans for the rest of Spain?

We plan to open very soon our flagship in Madrid, it’s scheduled for Q1, 2020.

Do you have any projects regarding the opening of new locations in Europe?

Yes, we had Lisbon in our scope for a while, so soon you will find us there. We are still looking for new places where our community can grow. Smart cities committed to change, welcoming innovation hubs that will challenge the future.

Stéphane Bensimon, CEO of Wojo

In 2019 Nextdoor became Wojo, accelerating its development and creating the ambition to become the leading European coworking network. Two years before, Accor Group, one of the biggest international hotel companies on the planet (operating brands such as Ibis, Mercure, Sofitel, etc.) had taken a 50% share in Nextdoor, by then 100% owned by the real estate company Bouygues Immobilier. We have interviewed Stéphane Bensimon, CEO of Wojo, in order to find out more about the project Wojo and its present and future plans in Europe. Wojo’s CEO will be a speaker at the upcoming Coworking Europe conference taking take place in Warsaw on November 13-15, 2019.

Hello Yoann. A few years ago Accor Group joined Bouygues in the Nextdoor network to develop coworking offerings. Why was this move needed for both players at the time?

A 50/50 joint venture was signed in July 2017. Insofar as Accor hotels were already endowed with shared spaces conducive to meetings and interaction, the idea of offering a place to work (as well as to network) dedicated to clients and local entrepreneurs came to mind naturally. Bouygues Immobilier aims at offering its clients an opportunity to plan shared workspaces (bars, coworking spaces, lounge areas, meeting rooms, carparks) from its design stage and hence help them optimize their business costs. So the fit between both companies was clear.

Nextdoor has become Wojo. Why was a change of brand needed? Is Accor more in the driving seat now?

Accor Group meeting

Nextdoor became Wojo to help its international roll out. Wojo is a spirit – the combination of Work and Mojo. Once Accor took shares in the company’s capital we truly worked hand in hand with Accor’s Innovation Lab’ to define together the future of coworking; true teamwork followed. When the idea of a typology of spaces (“Spots” and “Corners” linked to Nextdoor sites) came about, it seemed clear that we had to reinvent ourselves in order to fulfill  peoples new ambition of working internationally, of working at most ten minutes from where one is living, etc. And no, Accor is not specifically the one in charge. We designed Wojo together and since then we have been standing on our own two feet with its support.

You want to become one of the biggest coworking providers in Europe by 2022. Why are hotel professionals well positioned to serve the flexible workplace industry would you say?

This is because the Accor staff is unrivalled in terms of reception and hospitality and we feel those to be key elements. A friendly dimension is at the core of Wojo’s offering. We welcome our new members through a shared moment, making sure that their days go by perfectly well. Accor has already got hotels ready to welcome clients all over Europe. This makes things easier for us in terms of networking. In the long run, we would like everyone to find a place to work less than 10 minutes from where he/she is located (whether a nomad or sedentary worker).

Wojo space

Workers are forever expecting more services (catering, fitness rooms, concierge services) at their workplace with which hotels are already endowed. According to an Inkidata study conducted in February 2019 for Wojo (results of the study, in french), 48% of French workers would like to benefit from spaces linked to sport or relaxation at the workplace. This is because it is the best way to offer business travellers an opportunity to make up a local network by offering a service that facilitates networking.

48% of French workers would like to benefit from spaces linked to sport or relaxation at the workplace.

Will Wojo’s expansion occur only through the Accor Group properties and hotels network or could we see Wojo spaces in third-party buildings?

By the year 2022 we expect to open 1.200 locations all over France and Europe within Accor hotels. Yet, Wojo Spots and Wojo Corners have been designed to be set up in any third-party location so long as it fulfils a certain number of requirements (high-quality and safe Wi-Fi, furniture quality, acoustics, good working conditions, etc.). In the long run they will be made available in train stations, airports, shopping centres, cafés, etc.

La Salle De Sport

Today, for example, there is a Wojo Spot in LA.SALLE.DE.SPORT with a Reebok concept store and a social club in the very heart of Paris. Not to miss out on anything, the locations that are already open can be viewed on our web app.

Nowadays hotel chains are entering the coworking field in bigger numbers. What does it tell us about the changes in the hotel business on the one hand and the evolving coworking market on the other hand?

Demand, which is directly linked to the revolution coming about in working conditions, is huge and the offerings are equally so. However, quantity does not rhyme with quality. It may appear to be easy to open up a coworking space. Yet in reality one must be in a position to offer a true experience including reception, a secure wi-fi connection, a quiet location, networking possibilities, the right atmosphere, services, etc. Small things (in reality not that small) make the difference. As for hotels: they have been disrupted by Airbnb. They are now in search of something new. By definition, a hotel is equipped as a minimum with a lobby, breakfast room, etc. in which it is tempting to improvise a coworking experience. In the long run we can imagine a client choosing a hotel no longer by pictures of the room or by how clean the spa is, but by the quality of its coworking facility.

As for hotels, they have been disrupted by Airbnb. They are now in search of something new. By definition, a hotel is equipped with a lobby, breakfast room, etc. in which it is tempting to improvise a coworking experience.

Seen from the outside, Nextdoor has positioned itself more in the corporate segment of demand for coworking with spaces located in higher-end business districts. Will Wojo keep positioning itself in that slice of the market?

We understand your interpretation, as Wojos origin comes from an intrapreneurial project on the part of Bouygues Immobilier. The first buildings meeting the conditions for such projects were naturally found in Greater Paris. Yet, from the outset, Nextdoor has had a true willingness to bring together companies of different sizes at one location to encourage open innovation. As a result of its positioning and more concretely speaking its price policy, its community has always been comprised of a host of different profiles. Wojo follows along these lines with its Wojo Spot offer of 9,90 Euros per month with no commitment. We are open to students as well as key accounts. Remote work now concerns all of us and we have at heart to see different sectors of activity, ages, trades come together, truly valuable.

Wojo Paris

Remote work now concerns all of us, and we have at heart to see different sectors of activity, ages, trades come together, truly valuable.

Wojo Spots, Wojo Corners… Is the Wojo offering targeting only nomad workers or longer-term resident workers? How different will Wojos be in Ibis or Mercure from Wojos in Sofitel for instance? What is your approach to segmentation?

There must be no ambiguousness here. Wojos are open to all those who wish to work. It is neither a service reserved for hotel clients nor a service delivered exceptionally to nomad workers. Our aim is to enable travellers and/or nomad workers to meet “locals” and be given an opportunity to network. We are therefore addressing the district’s inhabitants or professionals who are invited to come there to work, near to where they are situated! Nearly all brands are eligible, except for ultra-economical ranges such as Ibis Budget or Hotel F1 or ultra-luxurious ones (such as Orient Express Raffles). The criteria imposed, such as a secure wi-fi connection, reception, reduction on beverages and snacks… are the same for everyone. At this stage we have begun to roll out Spots in France in an economy/mid-range: Ibis Styles, Ibis, Mercure, Novotel, etc. and some are about to open in the high-end/luxury range within Pullman, MGallery and Sofitel. As for Corners, this concerns the same range of brands as Spots.

Hospitality is the number one value proposition offered by hotels. How comfortable are you with the notion of community  as an important factor in the coworking experience?

As mentioned above, one of our strengths lies in the conviviality and good atmosphere that reigns in all Wojos. Furthermore, Wojo does not exist without its community! In addition to shared office spaces Wojo stands on a team of passionate people.

Wojo at Issy-Les-Moulineaux

We thus offer a wide range of business and festive activities in each space throughout the month so as to enable each person to meet others, exchange and learn as well as relax. Community Days for example are held every week in a different space. They enable members to pitch their propositions,  propose a workshop, meet our partners invited for the occasion, invite their clients, attend a conference, etc. Our community also interacts on our digital platform. Discussion and support groups are set up where a program of physical activities is available.

Some experts predict that coworking will represent 20 to 30% of the whole office market by the end of the coming decade. Would you agree with that prediction?

Yes, I believe that is correct. It is more than just a trend. It answers to a need on the part of employees and companies alike, even if for different reasons. Of course we would like to keep up the pace. We plan to open 50 Wojo buildings, 100 Corners and 1 000+ Spots in France and Europe so that members never have to worry about where to set up to work again, hence giving them a guarantee to stay forever connected with their community via our digital platform.

What are Europe’s specific challenges in the field of workplace expectations as opposed to other parts of the world?

There is no specific challenge in Europe compared to other continents. New ways of working are growing everywhere. For example, we see the same trend in Asia with coworking representing more than 3% of office stock in Hong Kong or Singapore. I’m personally convinced that Africa could be a strong coworking market in the coming years. We decided to start Wojo within Europe because of our field knowledge and needs expressed by our current members.

SocialWorkplaces.com, organizer of the Coworking Europe conference, was invited by Mipim PropTech Europe 2019 to organize a unconference during this month conference in Paris. During two sessions of 1 hour each, we organized discussions with close to 40 participants.

Prior to the event, delegates had the opportunity to suggest topics they wanted to be discussed. Participants proposed to cover areas such as community management, members flow data analysis, profitability or the integration of new IoT devices or software, in order to optimize space operations.

One very hot topic among others was about coworking expansion and internationalisation. In the conversation group, representatives from a major Italian multi-location coworking brand, from a Spanish Fintech ecosystem, from a Paris based design studio, from a very influential German Real Property company, from a IoT startup, as well as an architect and a space manager from Turkey, to list a few.

Here are some of the inputs and takeaways shared by the participants during this animated Unconference conversations at Mipim PropTech Europe 2019 :

How about replicating a similar coworking model in different cities and countries?

• “Some big international brands behave like McDonalds. However, in coworking, you need to adapt your positioning and service to the local taste and realities. It’s not always one size fits all.”
• “The way you design a space is influenced by the culture of the the country you are in.” 
• “You need to know local markets. For instance, we made an important move to the Benelux, a few years ago, where we opened a coworking location. It was quite hard. The brand wasn’t known and we have been through a number of cultural differences that we had to learn and deal with. (…) Nowadays, our strategy is to make our position stronger, first, in our home country before moving abroad.”
• “As a coworking space, you have to strike local partnerships. Outside of our home city, in other Italy regions, we hire local people. You have to deal with differences in approaches, tastes, even accents, according to where in the country you are based.”
• “Wherever you are located, you have to give back to the local community”
• “Address local markets with specific approaches is also a matter of legal differences. Lease contracts are different in Belgium, France, or other European countries. The legislation on virtual offices differs too.”

Local coworking operators vs big international brands expanding everywhere. Who wins?

• “International expansion has to be driven by a strong, articulated, strategy. You see some well funded coworking players opening new locations regularly without a clear understanding of how to deliver value out of it. They are spreading out in different countries without a clear location and development strategy. They open up in San Francisco, in Germany, everywhere without a clear logic aside of being in some well reputated metros. From our Real Estate owner perspective, we prefer to deal with strong, well established local players.”
• “Another issue is that big international real estate brokerage firms are publishing nice reports about coworking. However, their local brokers have no idea about local coworking markets. This makes things more difficult for coworking players when they want to develop their multi-location strategy in a specific country.”
• “From the customer perspective, things might differ a bit. A small company will look for a small local coworking operator, in the beginning. Things might change once the company starts to grow. They might then start to look for a stronger coworking partner”

You see some well funded coworking players spreading out in different countries without a clear location and development strategy. They open up in San Francisco, in Germany, everywhere without a clear logic aside of being in some well reputated metros.

Thinking  beyond “Instagram friendly” space layout and design?

• “How do you keep your ability to refresh you design without killing the costs? (…) Some famous international coworking brands invest most of their efforts in designing their “Instagram” friendly common areas, where everybody comes in and out. The offices itself is very much more standardized and less cozy, with much more classical furniture. (…) You can re-do all your lobby every 4-5 years. You can hold more than 10 years with the same outfit in the private offices. “

Coworking differenciation and specialization?

• “The differentiating factor will be the ecosystem you are in, and how you specialize yourself in it. Google Campus, in London, for instance, was among the first important coworking space to open in the UK capital, in the beginning of the decade. There were a lot of startups, there. But they were doing a lot of different things, and one rapidly acknowledged the lack of specialization which had an impact on the attractiveness of the space after a while for startup members.”
• “In our space, we focus a lot on drawing players coming from the FinTech industry. We developed a leveling approach (…) We did the same with a bank in Italy”
• “Big international coworking brands, nowadays, strike deals with Headquarters of major companies located in the Silicon Valley. The goal is to create partnership on the global level, and promote their international network of locations”
• “There is room to propose different levels of offering depending on the different life cycles of companies.”
• “Big companies now look more about the facility management dimension those companies can provide them with. That being said, the situation is not always rosy. Some of them are frustrated to see that major coworking brands let real estate and facility management issues be handled by community manager who have no technical expertise or know nothing about real estate and building management matters.”
• “Small coworking spaces can’t alway afford to have in-house real estate and facility manager experts. So, big ones might have an advantage from that perspective.”

External growth vs organic growth strategy for flexible workplace operators ?

• “Some international players tend to grow through acquisitions of local players.”
• “Acquisition can be a hard way to go, because branding is critical in the coworking world. Switching to a new brand, a new image, a new approach, and paste a more standardized service and set of value on a local level out of the existing operation of a local coworking space is something very tricky and risky. External growth in coworking is sometimes closer to shaping up a conglomerate than to develop a seamless international service for standardized demands. True, the real agenda can also be to kill the local market, and expand later with a oligopoly service. However, this can turn into a dangerous strategy, because buying coworking spaces locally is not as simple as just buying local market shares… You are bringing in specificities, values, flavor, style…”
• “WeWork, on the other hand, rather grow organically, and is supported by a network of partners. Data collection and management has become an part of what they do.”

External growth in coworking is sometimes closer to shaping up a conglomerate than to develop a seamless international service for standardized demands.

Born a few kilometers away from the Harvard University campus, the Cambridge Innovation Center (CIC) has been a home for great entrepreneurs leading fast-growing companies since 1999. In 2018, CIC raised US$ 58 millions from HB Reavis, the Bratislava based real estate developer. We have interviewed Kari Mruz, the General Manager at CIC Warsaw, to find out more about CIC values, mission, strategies and plans for the future. Kari will also be a speaker at the Coworking Europe 2019 conference, this fall.

Hi Kari. Can you introduce yourself and explain us what CIC is and what’s its mission?

Kari Mruz

I am the General Manager at CIC Warsaw. The Cambridge Innovation Center designs, builds and operates innovation spaces and communities. We believe that innovation is the best way to solve local and global problems, so our goal is to provide entrepreneurs with the communities and infrastructure they need to succeed. In 1999, “coworking” wasn’t a household term, let alone a standard office option. That year, CIC became the first provider of shared office space in Cambridge’s Kendall Square, now known as the most innovative square mile on the planet. The mission was the same then as it is now: to support entrepreneurs in fixing the world through innovation.

How does a company from Cambridge MA, close to Harvard and other prestigious names, figures out it makes sense to replicate the model on other continents?

There are talented people with great ideas everywhere, not just at Harvard and MIT, and CIC seeks to support even broader impact by tapping into the innovation potential of other communities throughout the world. The more cities we go to, the bigger network effect we can create. That said, we don’t tend to rush into new cities. We spend a great deal of time developing deep partnerships and collaborating with local leaders before we begin to build anything.

How do you combine the coworking business and the training/innovation inputs you are providing? Why does it make sense to interlink the coworking and “innovation” sides? 

CIC and Venture Cafe, Boston-Cambridge

Coworking is naturally linked with innovation because whenever people share physical spaces, they start to bump into each other, trust each other more, take more risks, share ideas, and collaborate to create things they wouldn’t have on their own. From the other angle, coworking can benefit from innovation, because it is always more fun to work in spaces where people are doing interesting and impactful things. In terms of our business model, we find central locations in core cities to create the nexus for innovation – by leasing office space and then providing it along with additional value to our members who join our communities through a monthly agreement to work in our office space and access additional benefits that go beyond just providing snacks and furniture. The added value includes events programming, shared intellectual capital, and access to the CIC network, which includes investors and corporate innovators who seek to work with entrepreneurs.

Coworking is naturally linked with innovation because whenever people share physical spaces, they start to bump into each other, trust each other more, take more risks, share ideas, and collaborate to create things they wouldn’t have on their own.

You raised capital, as did some other big international coworking players, recently. How do you differentiate from these other brands?

Lab at CIC

Similar to other big coworking players, we do aim to change the nature of workspaces, but primarily as a means to innovation, not just to make office life cooler. CIC’s type of deep, concentrated “innovation communities” are not simple to build. Our locations require very capable senior leadership and thoughtful staffing to thoroughly support the entrepreneurs who choose to work in our spaces. Also, keeping innovation as our central premise means that we end up building not just game rooms with ping pong tables, but also more complicated pieces like shared lab spaces and equipment that draw in scientists and technologists. This means we’ll probably expand slower than some of the other big players, with the intention of creating powerful ecosystems that generate long-lasting, impactful innovations.

Keeping innovation as our central premise means that we end up building not just game rooms with ping pong tables, but also more complicated pieces like shared lab spaces and equipment that draw in scientists and technologists

CIC is opening up in Warsaw and has already a location in operation in Rotterdam. What are the plans for Europe?

CIC is exploring a number of other locations in Europe and open to initiating discussions with other cities as well through our expansion initiatives. Our goal is to have 50 locations open in ten years, and Europe is a significant part of our growth plan as well as other regions globally.

Our goal is to have 50 locations open in ten years, and Europe is a significant part of our growth plan as well as other regions globally.

Why does Europe makes sense to you and how does it differentiate from the US or Asia?

CIC Rotterdam

European communities are unique, with each country offering its own set of innovators who respond differently to coworking environments. CIC looks to enter markets that are receptive to creating an impact through innovation. We partner with cities that understand how an innovation center can attract entrepreneurs and stimulate economic development, and work closely with local leaders to ensure that our strategies align with the region. We take a local, community-focused approach in all the ecosystems we build, whether it’s in Europe, the U.S., Asia, or elsewhere.

You will be located in the second tallest building in Europe to be completed soon in Warsaw. Does locating yourself in prime buildings belong to your strategy?

Choosing the right location and facility is really important for us, we’re really picky. We look for facilities that can provide a premium experience for our members, and locations that have the potential to be the center of gravity for innovation in the city. We couldn’t have picked a better location than the Varso tower complex in Warsaw. Not only will the Varso tower be one of the tallest building in Europe, but it will have direct underground access to the central train station, and huge floor plates in the Varso 2 building we will be located in, allowing us to build large event spaces on the same floor as our office space offering.

You focus on some specific industries, such as “port activities” in Rotterdam. Is the focus a case by case assessed choice or are you globally focusing on a limited number of areas?

CIC St Louis

A focus on specialized industries is one of the things I’m most excited about for CIC’s future. For now many of these are very case by case, determined by the particular strengths and goals of a given city. However, ultimately these communities can and should be linked – for example, technology developed in our robotics community in Boston could be used in a port in Rotterdam.

Ultimately these communities can and should be linked – for example, technology developed in our robotics community in Boston could be used in a port in Rotterdam.

 

Coworking has be around for more than a decade in Europe. Nowadays, coworking reaches out to every corner of the continent. BNP Paribas Real Estate released a study spotting the new upcoming coworking hotspots in Europe and what drives the growth. We interviewed Richard Malle, Global Head of Research and Vincent Voute, Senior Research Analyst, to tell us more about their findings.

Hello Richard. Hello Vincent. According to your research, London and Paris are experiencing a deceleration in terms of coworking growth. Are the best days over for coworking in these metropolises?

Richard Malle

The growth rate of coworking is indeed slightly decelerating in London and Paris. However, with +13% and +19% of space taken-up by coworking operators, 2018 still saw a 2-digit growth in both cities. In terms of volumes (transacted m2), the take-up for coworking spaces reached significant values in both cities already two years ago, and represented again by far more than 100,000 m² of new coworking space in 2018. Consequently, the slowdown in growth is not a sign of a weakening market. This is just more difficult to achieve a high growth rate when it is calculated on the basis of big volumes. On the contrary, it seems that coworking still has room to expand in the two metropolises. Indeed, existing coworking spaces show high rates of occupancy while coworking still represent a limited share of the total take-up (13% in London, 5% in Paris). The demand for coworking workstations is far from fading. Rather than being saturated, we consider that the market is becoming more mature.

The demand for coworking workstations is far from fading. Rather than being saturated, we consider that the market is becoming more mature.

Frankfurt, Munich, Madrid, Brussels, on the other hand, show no signs of slowing down. Do you expect the saturation level to come soon in all the other major cities in Europe?

The new trend about coworking is that the market is no longer limited to the usual largest commercial real estate markets that are London and Paris.

In other European dynamic cities, coworking now represents a significant share of the market activity, for instance in Amsterdam, Brussels, Dublin, Madrid or Warsaw (NB : Warsaw will the the hosting city of the Coworking Europe 2019 conference , organized by SocialWorkplaces.com), where it represents more than 10% of the total office market.

Major global coworking operators seem to consider these cities as potential drivers for future growth and are now starting to take a close look at these markets.

The growth of the EU coworking market is driven by the big international players. Have independent operators to find a niche?

Our European coworking research shows that most of the new coworking spaces are created in central parts of the cities, or at least in the well-established business districts. This appeal for these sought-after districts has a cost: this is where the rents are the highest and where the competition for the best buildings is the fiercest.

Big international players can afford to pay high rents to lease large units in the most modern buildings located in prime districts. They are also able to provide a lot of services – which requires more employees –, or advantages such as a global membership that enables their members to access their spaces everywhere in the world, etc…

This is very unlikely that independent operators will be strong enough to compete on such levels. They consequently have to find a way to differentiate themselves from the big players to attract customers and to position themselves on their own market segment.

How about property owners developing their own coworking brand and offering, like in Warsaw: is it a marginal phenomenon or do you expect it to strengthen? 

As an always growing phenomenon, this is logical that the flexible office market arouses interest among the whole real estate sector. However we consider that property owners should make sure to implement a solid and well-thought strategy and business model when entering the coworking market.

Running their own brand is indeed a new kind of activity for them to which they have to adjust. The question of the economic risks is also important: launching their own brand implies that risks are not shared with the tenant but fully taken by them.

The acquisition of existing coworking brands by major investors is another possibility for real estate players to enter the market while benefitting from the experience of these existing brands. As long as the market continues to grow, we can logically expect this phenomenon to strengthen.

You refer to new forms of collaboration. You mean between operators? Maybe another kind of players? 

We actually referred to the new forms of work organization which tend to require more flexibility for which coworking seems to be an appropriate response.

Berlin based CoWomen is a community club and a coworking space for “driven women”. The space focuses on women on the rise. CoWomen, explain the founders, supports those “women on the rise” to achieve their goals with a workspace with beautiful atmosphere, experts and masterclasses to develop professional and personal skills and community events to find inspiration for the big goals. Hannah Dahl and Sara-Marie Wiechmann are two of the three co-founders.

Hello Hannah and Sara. Can you introduce the CoWomen project you run?

We aim at offering the perfect membership for women to build their careers and lives they love.

Our mission is to connect rising women to help them unleash their potential. We firmly believe in the positive effect of strengthening women in business and the enormous impact they can have on society and the economy. Everyone profits from more successfully working women! And because building networks is the deciding factor to achieve this, it’s what we focus on at CoWomen.

Hannah’s story is the birth of the CoWomen idea: When my first son was three months old I started to work again as a software and process management consultant. And while standing in the client’s bathroom pumping milk and being on the phone with colleagues, I started to realise that we need new work spaces. Spaces with other functionalities but also other messages and other purpose. A couple of months later I thought about starting a coworking space with child care but I was happy to see that we already have amazing spaces in Berlin that provide this service and childcare was not the only pain we wanted to solve with CoWomen. After networking in female networks for a while, it really hit me. There are so many topics we share and work on as women and being amongst women is so much fun – what an energy! An idea was born. Since then, my idea has grown into a place and space that offers everything a working woman needs.

I was not alone on my journey. When I reached out for more women to join CoWomen, I didn’t have to look too far. Sara has been a colleague and work friend of mine in our former company in software consultancy for a while and she got on board really quickly.

Sara:

I have a passion for digitalisation, for change and modern feminism. I lived these topics all my life and in my studies in Cologne and London. Transitioning into our classic working world – and we were working in public management which is also culturally impacted and not known for fast innovation processes – literally meant a culture shock for me. So, I analysed this new culture I was surrounded by and tried to master it and what I found was that the women in my company were driven and going big. They were all more or less in my age group and career stage. We were heard and promoted and needed to take on responsibility. But, there were no female role models for us.

So I left the company that I liked and started my journeys with Hannah to bring those great women together and understand how we can change the classic working world we experienced.

We were heard and promoted and needed to take on responsibility. But, there were no female role models for us.

Kat is the third woman in our founding team. She is a globetrotter always passionate about amplifying women’s voices. Having gained ample marketing experience in NYC, London, and Berlin, she can create clear and human-friendly messaging and content. That’s why she is developing and executing our marketing strategy to spread the word about the amazing connections happening every day at CoWomen.

We three founders work with a lot of heart and vision to make it possible for the women to achieve what will bring them forward, whether as a community or in their personal and professional development.

Our “Code of CoWomen” makes it clear which values and goals we pursue as a community. The code also encourages you to be yourself in a professional space and to feel comfortable with what you are doing. We live by what we expect from other work environments and employers.

Why did you feel the need for a coworking for “women only” space?

Because it’s so much fun! Really, the energy that is within a women only space is unbelievable. But mainly because we experience the need to create a space that serves a specific purpose. We want to change the working world and coworking spaces are the perfect place to do so. They offer an alternative working atmosphere and the chance to talk to like minded people to make change happen together. In our case this purpose is creating a better working world for women and strengthen them so we all profit from more working women. We were networking for over a year, we see the trend of rising female networks meeting in cafes sporadically. They need a physical space to make a difference.

And in addition, we see and experienced the pain points of women in the business world so we know that these networks are more than necessary. We exchange profoundly, openly and honestly and we meet the same challenges in life. For example, we often deal with topics such as the different ways men and women communicate, leadership styles, further education, work-life integration, the compatibility of work and family, an attentive life and often also finding or creating meaningful work. So what happens in the CoWomen space is not picking on the pain points. It is striving for big dreams and big change. It’s a very special energy when there are only women in the room.

We see and experienced the pain points of women in the business world so we know that these networks are more than necessary. (…) The CoWomen space is not picking on the pain points. It is striving for big dreams and big change.

And even if we don’t call it that, the space is a kind of safe environment where women can leave their comfort zone and try out new things. Both in the role of a participant and of a workshop leader. And you simply feel more comfortable and courageous among women. Some women need the specific exchange, some women find their customers in our community and some are merely happy not to be in the minority for once. Especially women who work in areas that are currently dominated by men, such as in the tech industry or the start-up world. It is a special experience to come together with women who are just as ambitious and determined. That gives new energy for the own everyday life.

Some women need the specific exchange, some women find their customers in our community and some are merely happy not to be in the minority for once.

We are at a time when the society promote diversity and inclusivity. Isn’t there a risk to be perceived as creating a new kind of exclusivity? 

Diversity and inclusivity are a result that desperately needs to be achieved in a lot of spaces in society, yes. Especially in spaces that mean power and designing the lives as we live them. But how do you achieve a good mix in managing and powerful roles? If there is a misbalance the minority needs to get the focus. Or as Tarana Burke (Meetoo movement) would say: “It’s not about exclusion. It’s about managing the inclusion, because otherwise they will not be pulled in the centre.” As CoWomen, we focus on including the demand of the female workforce into the classic working world. And also more females. We understand that the lack of female role models is one dominant factor in some areas and we understand that exchange amongst women on professional topics is not possible in every work environment. Therefore, we focus on women.

Without entering into the discussion about where different behaviours come from, which socialisations predominate or what is biologically predetermined, we find that women often act, prioritise and decide differently than men. Of course, we are all individuals, so – as we have learned in some of our workshops – we should rather say “typically female” action deviates. However, it is guided by values that have long been demanded of a modern working world and modern leadership. Authenticity, flexibility, commitment to one’s own values, inclusion and collaboration, but at the same time independence, empowerment and adaptability. These and many other behaviours are urgently needed in a complex, individualising society and in complex markets, so we are here to push them forward. By the way, Brigitte Zypries is also one of our fans. CoWomen makes women’s lives easier and gives them the network they need to reach the top! CoWomen is more than just a coworking space. Our vision is to connect and support the next generation of female leaders. We connect them with each other as well as mentors and offer them the perfect work environment to realise their dreams. We want to feel comfortable in the rooms we work in, almost like at home.

CoWomen is more than just a coworking space. Our vision is to connect and support the next generation of female leaders.

Is there a mainstream profile of member within your community?

Women with a certain “drive” who don’t always know what they want, but have the energy and the wish to find out and pursue it. Women who want to create value for the economy and above all for society. Women who know the meaning of networks and want to live the values of our code. Our members come from different industries and have all kinds of professional situations.They mirror the typical working woman in Germany, but in regards to the aspects above. They need to want more and develop together. As you can see, we are not strictly depending on women who work with us in the space every day, but we have members who join us for an occasional work day and a lot of events after their work day is done. The majority of women at the moment are freelancers which is also a cultural phenomenon in Germany. We love that they come to our space to develop their business, their projects and themselves.

The US have been among the first to see the emergence of “for women only” coworking space: would you say the situation is similar in Europe? 

We are not sure that we have an answer to comparing the American culture to a European culture regarding female coworking spaces. From what we have seen, the call for feminism and female-only spaces in Europe is not as “loud” as in the US. In Sweden and London, there are “female focused” spaces: Spaces created by women but not only for women. We are the second space that opened for women only in Europe and we are going to open many more. There are amazing spaces for women in the US that we don’t usually read about in Germany or Europe. And they are in parts also our role models: empowering women by bringing them together and catering their needs. Without bashing men. And Kat already visited some on her last trip to the States. So we think we share our goals, but we are living our European culture as well. But most important is: we are always open for cooperation. Together we are stronger.

We are the second space that opened for women only in Europe and we are going to open many more.

Would you say the struggle for more gender balance is similar in Europe than in other places?

Gender balance is highly culturally determined and different in every society. What we are aiming for is a switch of mindset and therefore we have to understand it first. What we know is, there is huge potential in Europe and in Germany to improve leadership and work by including more females. So similar, we don’t know, but there are a lot of numbers, that show us, that balance is missing. It is hard however to compare numbers. We need to ask the right questions first. And this is where coworking can help as it creates the space to get into topics of imbalance more deeply with women who are aspiring to reach the top. So they ask the right questions to themselves already. And we all see the movement of women working together on creating this big momentum and movement towards a great female vision. In addition to that, Coworking spaces themselves are a manifestation of the problem of imbalance in the modern working world. There are women missing in a lot of coworking spaces too. In the German-speaking coworking scene we notice a big shift towards this topic. Coworkers and owners are very aware of the low number of women in their spaces, on diversity topics or are even interested in opening more female spaces.

Our vision is to create an inspiring place where aspiring women can come together to change the world of work, even the world. Together we are stronger. We care a lot about building our shared vision sustainably. In Germany, coworking spaces for women are new, even though almost everyone in Berlin already knows about “coworking”. Nevertheless, for us it is as important to take our knowledge and experiences and support organisations and companies to bring more diversity into their corporate culture. We are all faced with challenges and can master them if we take the needs of our colleagues into account and transform the world of work accordingly.

There are some clichés that a coworking space for women will naturally include a “child care” service. Your project is definitely not about that. 

Hannah:

I usually answer that there aren’t men at the space so who should take care of the kids?! Haha. But yes, this is an ambiguous topic for us. And in a very early stage as described above, we actually thought about a space that includes child care services as this was my initial impulse. But it’s not our focus now. We are learning through our work at CoWomen that family planning is (still) a classic female issue but is very far from being the only one that keeps us from taking on more responsibility in the working world. So there is a 100%-acceptance policy on family topics and the need to bring your child with you sometimes. I take my Babyboy to any (business) meeting that I have. But at the space, we focus on working and changing the working world. Our moms also do. We work on creating a narrative to change the system. It is much more than just creating places that include child care services to ease the pain of not having time to work. It is about showing the world that there are things that need to be done, women or men, with or without kids.

What are Co-Women’s plans for the coming two and five years?

Two years: Become a well-known and fast growing thought leader promoting a great free life with power and responsibility for women all over the world.

Five years: We are building an empire 😀

Ralph Manheim is the CEO of Primalbase, a company whose mission is “to provide physical environments for the tech community to realize their ideas and projects“. Primalbase works on creating a network where developers researchers and entrepreneurs can come to work, explore and collaborate with others in tech. With that purpose in mind, Primalbase started to open up coworking spaces, offering usual perks such as fast internet, free drinks and snacks, kitchen, meeting rooms, lounge areas and so forth. Primalbase is operational in Berlin, London and Amsterdam with locations set to open in New York and Singapore by the end of 2018.

What makes Primalbase specific? The company is one of the first coworking space to opt for a blockchain based technology to offer access to its members. A the center the model: the sale of blockchain based tokens, identified as PBT Token in the case of Primalbase. The PBT token was valued 4.700 US$ at the end of October 2018. The sale of  blockchain tokens helps to fund the initial investments in the space.

We interviewed Ralph Manheim on the the reasons why he pioneered this new coworking blockchain based model.

Hi Ralph. What is the interest of a blockchain technology based model to operate a network of coworking spaces?

This has a range of advantages for users and it is central to the creation of the community based coworking model that we believe the tech industry has been yearning for. Our tokens are also innovative in that they can be or will be the technology (nearly there) allowing to lease out the coworking access to another person temporarily. That way, token holders are enabled to get a financial benefit when they don’t use the token for themselves.

Ralph Manheim

Can you explain us what lies behind the so called blockchain tokenization of office real estate?

We issue tokens which are stored on a blockchain in order to ensure that they are completely secure. They are practically impossible to steal and cannot be altered. In the case of our PBT token, we are based on Waves and Ethereum blockchains.

Let’s say you buy our PBT tokens via an exchange (many exists). By owning one token, you are granted the access to a desk in any of our offices around the world.  A few months later, let say you no longer longer need a desk seat. You can then sell the token to someone else, who will then get access to the coworking space. Same thing would you be planning not to use your token for a while, you can lease it out instead of selling it out.

What are the advantages of your PBT Token as opposed to rely on a more traditional Real Estate transaction model?

Source : BlockchainHub

Our members benefit from the great flexibility that our token offers. Not only can you use it on an international basis, as you can access all our operational offices in Europe and in the world. You also can sell your token straight away would your office needs to cease. This means less administrative and costly steps. Basically, you are less bound and keep a higher level of control on your exact needs and spendings.

Who, typically, buys one of your tokens ?

Everyone can buy one of our token. At Primalbase, though, we are focused on the tech community.  It’s an open market. Our environment is geared towards the tech community. So, are you active in tech field, the benefit is most straightforward for you as you get an immediate access to a community of peers. That said, our community is diverse and shares the same appetite for innovation and collaboration.

Why does community building still make sense in this model?

As I mentioned, community building is at the heart of this†model. One part of our product is certainly the workplaces. They are  spacious, beautiful and cool places to work from. However, that is not the only component. The most important aspect of our product is the community that works within them, what they can offer each other, the energy they create, the shared sense of mission to co-create exciting new technologies together. This significantly increases the ability for individuals and companies to accelerate. 

Do you think that blockchain technologies are going to disrupt the commercial real estate market in the coming years? What could stop it?

We are still in the very early stages. Nonetheless, we feel that tokenization based on blockchain will certainly be transformative in real estate business. We feel that we participate in proving that we can revolutionize the way workspace lots can be allocated. We can change the way we see the interaction between supply and demand in the real estate sphere.

Should all coworking space operators switch their model to tokenization?

We are currently focused on ourselves and delivering on our promises. We are not here to judge other coworking operations on which model they should build up their developments. However, tokenization is well an integral part in our model. We feel it’s the right way to go and have faith in the flexibility and freedom that tokenization offers its users.

Ralph Manheim is a speaker at our Coworking Europe 2018 conference.

Founded in 1999, The Instant Group rethinks workspace on behalf of its clients, injecting flexibility, reducing cost and driving enterprise performance. Instant places more than 7.000 companies a year in flexible workspace such as serviced, managed or coworking offices workspace (Instant Offices hosts more than 12,000 flexible workspace centres across the world).  The Instant Group employs 230 experts worldwide. We asked John Williams, Head of Marketing of The Instant Group, about his vision of the evolution of the international flexible social workplace market.

How is the conventional property market anticipating the rise of the demand for flexible workplaces?

John Williams, Instant Group

We are witnessing a seismic change in the flexible workspace market.

Clients are demanding more from their office space and the growth in operators is serving this increasing and changing demand. Landlords are entering the market with a variety of flexible office solutions and there will continue to be consolidation of the market where there are opportunities for growth and a shift to an outsourced office model.

There is a clear difference in terms of market maturity between the UK, a handful of digital startups friendly metropoles (Paris, Berlin or Dublin), on the one hand, and the rest of the continent, on the other hand. Does coworking only fit with dense urban environments? 

Defining the differences in flexible working is critical, as coworking only makes up a small percentage of the market. Flexible workspaces offer all types of space including dedicated private offices, hybrid space and coworking. The growth of flexible workspaces and coworking will continue as companies of all sizes adapt and demand greater agility and flexibility with reduced risk. In terms of specific location growth, there are some factors which could make other European city contenders against London; largely whether Brexit will mean businesses no longer want to retain their portfolios in the UK.  Some businesses may seek a flexible solution in a key European city, with Dublin already being the European headquarters for some of the largest tech companies such as Google, Facebook and Paypal. Whilst markets such as Paris and Amsterdam continue to go from strength to strength seeing consistent growth, attracting a range of companies into the flex market as well as seeing an increased range of operators in these cities. Whilst London continues to be the most mature European market, other key cities are beginning to really tap into flex space with an abundance of new centres and operators launching in the market.

Defining the differences in flexible working is critical, as coworking only makes up a small percentage of the market.

Is the move supported mainly by coworking “multinationals” or by independent local operators?

The three largest providers of serviced office space in London in 2017 only made up 17% of the total market with a huge number of niche providers. These smaller operators cater for unique but growing segments of the market such as specialist TMT space or women-only centres.  As we have seen in the US, the number of smaller operators, who run only one or two centres, has continued to proliferate despite the growth of the larger players and represent a large proportion of supply to the market.

The three largest providers of serviced office space in London in 2017 only made up 17% of the total market with a huge number of niche providers.

Are traditional business centers all getting in and supporting the growth in offering?

Whilst the initial response was sceptical, many traditional landlords are beginning to see the benefits of flex space within their workspace. According to the Financial Times, increased client demand for flex space is having a significant impact on UK landlords.  As business demand for greater agility grows and the size number of requirements increases to all-time highs, in fact the number of deals done across London for 20+ desk requirements is up a staggering 46% in the last year alone.

Traditional landlords are seeking a new route to cater for this demand; Instant recently complete a first of its kind with a co-lease solution with landlord, Dorrington, for a client seeking a larger desk requirement.

The number of deals done across London for 20+ desk requirements is up a staggering 46% in the last year alone.

How does pricing and amenity provision compare, and what do you expect to be the respective USP’s (Unique Selling Proposition) ?

Service, Calibre of space, Quality of physical space, Additional amenities, Gyms on site, Community aspect and network (WeWork, The Wing, etc.).   Much like many other models; the higher the calibre of the amenities, the higher the pricing. However, desk rates are continuously climbing in correlation with increased demand.  We have commissioned a number of surveys over the last 24 months with our vast occupier database. They are seeking workspaces with amenities more akin to a hotel environment with gyms, creches’ and yoga spaces to name just a few – and operators are listening. 

They [occupiers] are seeking workspaces with amenities more akin to a hotel environment with gyms, creches’ and yoga spaces to name just a few – and operators are listening.

What are, according to you, the other growth areas – and the reasons why we think they are going to expand ?

Events, meeting rooms, gyms etc, concessions (pop ups, etc)… Operators are beginning to diversify and add value to existing clients; for example WeWork has begun providing pop-ups for retailers within their locations, providing a one-stop shop for occupiers.  Other ventures include single use meeting rooms. Within the wider market, adding value with improved or innovative amenities will help operators stand out from the crowd. 

What could slow or stop the expansion dynamic ?

There are several key trends that will significantly shape the future of what is still a nascent industry. The flex market is only 30 years old, at most, but the majority of its growth has come in the past decade with supply ramping up and more operators joining the market. This rapid growth and increasing interest in flexible solutions from the more traditional side of the property sector is already creating issues that the market will have to address. As competition grows across the market and is compounded by increased cost to operators of taking space, square meters allocation per desk has fallen dramatically to ensure margins are retained. We have also witnessed consolidation of the market through a number of acquisitions. In APAC, WeWork has been acquiring a number of local operators including Naked Hub and Space Mob. There are over 5.000 centres across EMEA and we have witnessed growth of 15% in the last 12 months. A number of operators including Mindspace and WeWork have expanded their footprint in Paris, Berlin, Amsterdam, and Tel Aviv.  While there is growing demand in all markets for flex space, there are a few factors which could impact the growth of the flex market : 1) Saturation of the market with too many; 2) operators, Recession / Financial down-turn; 3) Consolidation of the market.

As competition grows across the market and is compounded by increased cost to operators of taking space, square meters allocation per desk has fallen dramatically to ensure margins are retained.

John Williams will be a speaker at the upcoming Coworking Europe 2018 conference. 

Picture : The Space – Source : Instant Offices

Mutinerie in Paris used to be the poster child of coworking entrepreneurs in the early 2010’s. Launched in the north of the French capital, the ecosystem always sounded genuine and unique, with, back then, one of the most beautiful space design one could experience. Seven years later, the van den Broek brothers and their fellow co-founders have decided to put an end to the story. Coworking is now huge in Paris, as it is now elsewhere. We asked Antoine van den Broek whether there is still room for independent coworking operators nowadays.

Hi Antoine. For those who have been involved in coworking for more than 5 years, Mutinerie is a name that inspired a lot of players within the coworking world. Why are you shutting down ?

Antoine van den Broek

We are shutting down our Parisian coworking space for three main reasons. First, running a small independent coworking space nowadays in an expensive city like Paris is a real financial challenge.

Second, more than six years had past since we opened our Parisian coworking space, in this period of time life has changed for us, we all have children now, with all that comes with it. We used to be in Mutinerie from early in the morning to late in the day when not at night, we would hold events two or three times a week, often on the weekend, we would have drinks with coworkers at the end of the long day, sometimes even sleep in Mutinerie… This life we enjoyed is no longer possible. Another life we don’t love less has replaced it. A very common explanation of why things change…

Third, the coworking scene has changed too. What use to be a movement has became a market. The energy of the beginning, the sharing spirit has faded away, and big business is following his own logic. This is not a moral judgment; this is the way innovation works. One mission we had as coworking early players was to raise awareness on the way work is changing, we can say we have succeeded in that. Coworking is somehow becoming a commodity; innovation is moving elsewhere. This is not a surprise. We knew it from the beginning, as I said in an ITW back in the days, pioneers will need to move to a new frontier.

The coworking scene has changed. What use to be a movement has became a market.

In 2018, can independent coworking spaces still thrive in metropoles such as Paris ? Or can only big brands stand and develop within the market, nowadays?

 I think independent coworking spaces can still work in metropoles such as Paris. Adding services around your core business, organizing significant events, and bringing business to your community acting as an “agency”, are solutions. The strength of theses old school coworking spaces is the community they gather and you have various ways to monetize this community. Some solutions like Copass can also bring the network effect to these independent coworking spaces so they can defend their position and philosophy against big players.

Bringing business to your community acting as an “agency” is a solution.

Have the users’ profiles changed during all those years ? If yes, in which way?

Yes, it has changed. At the beginning, 50 percent of our members where foreigners, now that coworking has spread in France, it is more around 20 percent. We can also say that users of the beginning tended to be a little bit more “strange” than the one of today. They were early adopters seeking new experiences; they made this weird choice when few people did. With time, the public had “normalized”.

At the beginning, 50 percent of our members where foreigners, now that coworking has spread in France, it is more around 20 percent.

Would Mutinerie (Paris)’s business model and size do ok in a smaller city or town, would you say? 

I would answer yes. The rent being the main cost (with HR), having access to much lower rental makes it easier. In smaller town, the competition is also less important. But you need to be sure to have the critical mass. It’s hard to answer generally as each city has a specific context and population. Some medium cities that offers good quality of life that fits freelancers’ needs and expectation can be good places to open a coworking space.

Is 400m2 a viable surface for coworking in today’s world?

It depends of your model and ambition. Would you want your place to be more than a shared office, you have to invest a lot in animation and community support. This fixed cost will be easier to carry if it is spread among 300 coworkers than 30. But you can also say that in a smaller space, people will meet each others easily so you don’t need to invest that much in animation… 

At the end of the day, it really depends of your goal : you can be an association with members actively engaged in the space management, you can be a collective of professionals sharing the revenues you get from your clients and the costs related to the space you share, you can also have a more real-estate approach automatizing all the space management to offer an accessible workspace and nothing more. It also depends whether this space is your only one or if it is part of a network. In that case you can mutualise marketing, communication, financial and administrative at the company level allowing economies of scale to be realised and liberating your spaces from those costs. In France, La Cordée is successfully managing a network of medium size spaces, mostly in regional cities (only one in Paris area), that would be interesting to have their view on this.

Mutinerie is known for its wonderful community and vibe. Why isn’t it enough, today? Had you considered to partner up with other player to bring the community into a new environment? 

The Mutinerie community is special, it has always been the center and the goal of our project and we are glad to see how it flourished. Mutinerie has been the starting point of so many successful projects and beautiful friendships. A generation of disrupters started here. But what makes it so human is also what makes it difficult to scale. Relationships are personal, not exponential, and you don’t take a cut on all positive externalities that you made possible. There is no clear correlation between serendipity and cash flows. Partnering up with other players ? Why not. You can build or join a network of other existing spaces, you can also partner up with some big real estate players to scale quickly. We had considered these options but did not go further in that direction.

Relationships are personal, not exponential, and you don’t take a cut on all positive externalities that you made possible.

What should/could, according to you, have been done for/by Mutinerie to be able to go further with its coworking offering?

I don’t know how to answer. At the end, an independent coworking space, like us, relies on the shoulders of a few people. As long as you are happy doing it, it’s fine, you find the energy but comes a time when you want to move to something new or somewhere else. Most of us are leaving Paris. Our lives have changed, we want and need new challenges.

At the end, an independent coworking space, like us, relies on the shoulders of a few people. As long as you are happy doing it, it’s fine.

What would you recommend to independent coworking space operators, based on your experience?

For general advices, I’d recommend you check Ramon Suarez’s Coworking Handbook. But all spaces have specific issues, are in different stages, this environment is so diverse that it is hard to give a general answer. If I had to, such as now, I would say: think of yourself as the head of a collective of professional and find a way to bring more business to it. Being the source of new incomes puts you in position quite different from being the guy who sends invoices. Many enterprises are trying to give freedom to their employees, you can be the one who gives structure to free workers.

What’s next for Mutinerie, now ?

We are putting our attention on Mutinerie Village, the rural coworking space we launched four years ago. Some of us have already left Paris to settle in the Perche (the name of this beautiful countryside, located less than two hours away from Paris) and there is now a real Mutinerie community there. In fact the social life around Mutinerie Village is incredibly rich. Nowdays, as a freelancer, you can be living in a lovely natural parc and have a fulfilling professional life. To give a bigger echo to this lifestyle, we recently launched l’Ambassade du Perche (the Perche Embassy). The goal of this program is to help freelancers who wants to leave the city, move here in the region. Mutinerie’s center of gravity has changed but the community remains. We all met in an important time of our lives, we grew together and nothing can erase these precious relationships and this collective identity. Our Parisian coworking space is closed but we still see each-others and work together… What is dead may never die.

Kolektif House is born in 2015. The Turkey based operator depicts itself as “More than a co-working space : a platform for creators who love what they do and believe in the power of sharing“. Today, Kolektif House claims it connects  1300 freelancers, startups, investors, corporates and mid-size companies, in Istanbul. Ahmet is the co-founder of Kolektif House. The company operates two locations in Istanbul and will soon open a third one.

Hi Ahmet, can you tell us more about the story behind Kolektif House?

We started Kolektif House when my close friend Civan, one of our partners and current CDO, returned back to Turkey after graduation in the US. He was then searching for his dream office. He asked me for help to find an inspiring and affordable workspace; soon enough we realized that there was a big gap in the market for such a product. This led us to start our own project, Kolektif House, to not only create an office space but actually transform the concept of ‘working’ to a feeling of ‘creating value and belonging’. 

You said there was no market for coworking, in Istanbul, back then. How about that?

There was a market potential, but, frankly, not a significant enough supply or adequate products to support that potential. What was established in Istanbul, back then, were standard office spaces whereas our aim was to challenged the status quo by focusing on the community aspect. We strived to create such a community that not only worked under the same roof but also interacted with one another at a social and professional level, where people shared their opinions and did business together to create something inspiring every day.

How did you raise the awareness about coworking? 

We had almost no budget for marketing and only a few people in our team. Our main awareness builder has been our events policy. We held events with local artists and offered them our walls so that they could display their expressions, ideas and artworks in our space. We invited an ice sculptor from the other side of the world to one of our Sunday breakfasts for a live performance. We hosted Turkey’s greatest comedian, musicians and actors in our talk show series. Besides, we attended One Love, one of the biggest festivals in Turkey, by convincing organizers to provide us with free space in exchange for a creative idea to showcase at the venue. So, we printed 1,000 photos of attendants and lighted up the festival area with a heart shaped artwork made of printed photos under the “Thousand Faces of One Love” motto. As far as the corporate brands in Istanbul are concerned, we invited executives to hold their events in our place with no charge and promised to serve them the best service they could find elsewhere. I would literally clean up the place every morning and Civan would serve tea just before we change to our suits and greet guests at the reception area. We would do everything we could to compensate for our deficiencies which went as far as lighting up the room with candles in our hands when we lost electricity during a very important conference that was held in our space. And today we evolved to a stage where we host events for leading brands such as Nike, Vodafone, Accenture, Is Bank, Yandex and many more.

We printed 1,000 photos of attendants and lighted up the festival area with a heart shaped artwork made of printed photos under the “Thousand Faces of One Love” motto

Who were the people/profiles you had first to convince?

Regardless of their business, our aim, since day one, was to lure people who are passionate about what they create. Due to the nature of the coworking space, our first members were mostly freelancers and startups. As we grew, we saw greater opportunity in diversity and in having different types of companies from various sectors. Today we have a member portfolio consisting of 10% corporates, %30 startups, 30% SME’s, 20% freelancers and 10% VC’s. Among our 1300 members, we have Turkey’s leading bank Is Bankasi, Turkey HQ of Yandex, successful startups that have expanded internationally and global VC’s such as 500 Startups.  

What are the communication channels you mainly used to get out of anonymity?

As said, events have been the major driver for us. Once we put a great show, influencers posted it online, press wrote about it, participants shared on their social accounts and most importantly, it leads to a strong word of mouth. Today we have a 360 degrees approach in marketing; we have a platform called KoMag to publish inspirational contents, we have added paid promotion on top of our organic Social Media strategy, we remain close relationship with influencers and press and keep collaborating with artists which drives brand recognition and loyalty.

Today we have a 360 degrees approach in marketing; we have a platform called KoMag to publish inspirational contents, we have added paid promotion on top of our organic Social Media strategy

Is Turkey a coworking friendly the same way you see it in other European countries?

Culturally, Turkey has a great community history, which is the coworking’s pillar. However looking at the recent past, we have not been great at picking up and scaling the global trends. Shared economy and coworking is one of these lately picked habits. I believe it will just take a little longer for Turkey to penetrate, but the potential and the energy is out there so I believe Turkey is a good fit for building a coworking ecosystem. 

Has it to do with a scarcity of financial resources? Or a lack of meaningful allies?

I believe financial resources can always be pointed as a limiting factor in any kind of business. However when you look at the bigger picture, having people understand what we really do here and the value we add to their business was the biggest barrier for us. Initially people only thought of the economic advantages of moving to a coworking space, but today even the most traditional corporates see the benefit of offering flexible working hours, interaction with a community and an inspirational work environment in their employees’ happiness. 

Initially people only thought of the economic advantages of moving to a coworking space, but today even the most traditional corporates see the benefit of offering flexible working hours, interaction with a community and an inspirational work environment

Based on your experience, what would you recommend new operators in low “coworking-awareness” areas to do first?

People have always been eager to be a part of a community, regardless of their era, nationality, geographic location, or demographics. The coworking trend is just a reflection of that same sense of belonging. So it is not about the destination, it is about the process of how you bring those minds together under the same roof. And the starting point of that process should definitely be paying genuine attention to what those minds say. This will help them to build more appropriate and target-fit services, and product features. 

What are the main challenges you have coped with since then?

We increased tenfold our size within the last 3 years in terms of surface, number of members and diversity of our community. While doing so, our biggest challenge was to keep improving our service at the same pace which required setting a strong technology backbone and acquiring the right talent. To be honest, I feel like we could have managed these two issues better. Once we realized that we came to a point where we couldn’t organize the events we wanted due to lack of team members or correctly analyze our membership data to make strategic decisions, we started to really move our investments to these two areas that I have mentioned above. Our team today grew to 43 people and we keep hiring great talent from a variety of industries which empowers us to create new departments such as technology so that we can continuously improve our overall service. 

What are Kolektif’s plans for the future?

We help people grow their hearts and their businesses. All of our team is working on many exciting projects to achieve excellence on this mission. In doing so, we will expand both locally and internationally to over 30 locations to serve nearly 34,000 members by 2022.

Ahmet will speak at the Coworking Europe 2018 conference in Amsterdam.