Tag: Community

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.

As Impact Hub demonstrates, building an international coworking brand is not reserved to highly-funded companies taking up hundreds of thousands of square meters in the world’s best city location. Impact Hub is the world’s largest independent coworking spaces network, all supporting the development of entrepreneurial communities looking for a “societal impact”. As of today, Impact Hub is an umbrella supervizing more than 100 locations spread over 50+ countries, hosting close to 16.000 members. Each hub offers support in fields such as entrepreneurship, idea incubation and business development on top of the coworking service.

We have interviewed Flora Rosenow, Global Brand & Communications Director at Impact Hub Network, to learn about the secrets of their success, the challenges they faced and the vision and mission all hubs have in common.

Hello. After more than a decade of operation and so many locations now opened on the planet, what are the ingredients of Impact Hub’s success?

Our Impact Hubs are always driven by a local founding team, who not just understands the local context but also deeply cares about it, as most Impact Hub founders come from the area where they want to open an Impact Hub. They found independent businesses that are united by our vision to create a more just and sustainable world in a global network structure.

You need a solid business model and culture, which needs to be rigid enough to unite everyone but flexible enough to be adapted to the respective local context. The market in Bamako, Mali looks really different to the one in Stockholm, Sweden, so you need to be able to cater for that and this is what our local founders ensure.

Our Impact Hubs are always driven by a local founding team, who not just understands the local context but also deeply cares about it.

Impact Hub is about societal impact. Why are coworking spaces the way to deliver or to help with achieving the mission?

We want to inspire, connect and enable people around the globe to create a more just and sustainable world. We believe that this can be achieved through the collective effort of many compassionate individuals and through working together. To facilitate this belief, we need to create places, where we can intentionally build this community.

Birmingham Impact Hub

So it’s about giving a home to the entrepreneurs who want to become part of a like-minded and intentional community. Solely having coworkers in a space won’t create societal impact – it’s about intentionally building this community, connecting people and engaging them. To drive systemic change, though, we need to include all parties around the table, that’s why we engage with our cities and governments and we also talk to the big organisations and support them in their goal to become more socially and environmentally conscious.

Solely having coworkers in a space won’t create societal impact – it’s about intentionally building this community, connecting people and engaging with them.

How does the franchise model work? 

Impact Hub Bamako

As a network, we are locally rooted, whilst globally connected in a democratic model. Every Impact Hub operates independently and then pays 2.5% of their revenues to the network association, which is collectively owned. This means that every Impact Hub has one representative who has one vote. They execute their voting right for every strategic decision that we as a network take. The Association is overseen by a Board that gets elected by majority voting as well. The 2.5% then pays a global team that executes the decisions on their behalf, provides strategy and cares for the network as a whole, as Impact Hub teams already have their hands full with their local operations.

Every Impact Hub operates independently and then pays 2.5% of their revenues to the network association, which is collectively owned.

What is the added value of operating under the name, Impact Hub, globally, for the spaces managers? 

Brand awareness and recognition is really important. Impact Hubs also do a lot of business together and knowledge exchange on key impact topics within the United Nations’ Sustainable Development Goals (SDGs) is a big advantage as well. Moreover, our communities are virtually globally connected to facilitate that exchange. After all you can only drive systemic change and create impact at scale if you are doing so in an integrated manner.

Our communities are virtually globally connected to facilitate that exchange. After all you can only drive systemic change and create impact at scale if you are doing so in an integrated manner.

What are the main challenges regarding the global coordination? How do you make sure all locations are aligned with the way to operate and values? 

Madrid Impact Hub

Quality control and mission alignment, but over the years we have sophisticated our onboarding process to ensure this well. When a team wants to create an Impact Hub in their city, they come to us when they are at least three members in the team and together they then embark on an onboarding journey, which is a tailored process, that we update on a regular basis, based on our experiences. Every team gets paired with an onboarding coach and has a number of steps they need to do, which are natural in the founding process anyways, like creating a business plan and a financial model as well as developing an impact logic based on the global one that we co-created as a network. The beauty is that every onboarding coach has founded an Impact Hub themselves, so they know about the pain points as well as the key drivers of success. This supports the teams in the best way, whilst ensuring that new teams are mission-aligned and come with the right motivation.

Every onboarding coach has founded an Impact Hub themselves, so they know about the pain points as well as the key drivers of success.

Is there or what kind of support program/projects are you dispatching or providing through the network of Impact Hub spaces?

We run over 200 incubation and acceleration programs annually, many of them together with partners and always on impact-related topics in line with the SDGs. A good example of an accelerator program focused on the SDGs would be Accelerate 2030, with more than 15 Impact Hubs participating or our global partnership with the WWF, which has already led to a number of impact-driven programs with a focus on the environment, like the Plastic Free Ocean Accelerator of Impact Hub Amsterdam and WWF. On a day-to-day basis, we e.g. have a partnership with the Boston Consulting Group who provide our startups with free business clinics. Furthermore, our startups get a lot of exposure through the 11,000+ events that are annually happening in our spaces, where they can participate, pitch, or get connected.

How impactful are Impact Hub locations for the respective ecosystem they operate within and in which fields, would you say?

Impact Hubs are supporting the development of their local ecosystems. Depending on the socio-economic context they are in, this means more educational work to show an alternative to the existing economic system by promoting entrepreneurship, social business models, and the importance of intentional communities with purpose. In more advanced ecosystems, we become players that focus on promoting intentional community building and collaboration – all with a focus on the SDGs. In each ecosystem, we work a lot with different partners, from private to public sector and academia, because you can only really achieve progress towards the SDGs and drive positive change if you work together with all sectors and also involve those unlikely allies that might generally not sit around the same table. Facilitating and driving this exchange and joint initiatives is key to us as well as supporting our entrepreneurs on their journey from idea to scale. You can find a lot of examples of stories in our Impact Report and our latest impact figures in our Community Impact Report. For instance, our Swiss Impact Hubs have teamed up with the MAVA Foundation and are jointly working on the Circular Economy Transition of Switzerland.

Circular Economy Transition, in close collaboration with Impact Hub Switzerland, sanu durabilitas and with the support of the MAVA foundation, contributes to drive the new paradigm for the future of business, policy making and society through this 4 main pillars.

In general, we work a lot with different partners, from private to public sector and academia, because you can only really achieve progress towards the SDGs and drive positive change if you work together with all sectors and also involve those unlikely allies that might generally not sit around the same table.

In the beginning of Impact Hub, coworking was still a marginal activity. Today, coworking is becoming a true industry. How does Impact Hub finds it place?

It is true, back in 2005 when the first Impact Hub opened, coworking was still a very unknown concept that was very innovative and we were one of the early players in the field. These days, coworking is a big industry and we continue to offer coworking services, but with a focus on intentional community building. We build communities for impact at scale, using the SDGs as a lens through which we view the impact we create in the world. For that, we have surveyed our community and their impact as well as the entrepreneurial needs for a long time and have learned that there are certain key success factors that make entrepreneurs thrive. Embedding these key factors and principles into our approach ensures that the Impact Hub experience is valuable, meaningful, as well as impactful. We believe that entrepreneurial networks of communities can be a strong driver for positive change and that is what we want to continue to drive in this world.

Copernico is one of the biggest coworking players in Italy. We have interviewed Luca Pasqualotto, Vice-President and Development & Asset Management of Copernico, to find out more about the italian coworking market and Copernico’s mission, vision and future plans.

Hi Luca. What can you tell us about Copernico story and positioning?

Luca Pasqualotto

Copernico was incorporated in 2016 as the spin-off of the flexible-offices activities previously managed by Halldis, one of the main service apartments operators in Europe. Copernico is currently the main coworking and flexible office operator in Italy, managing 13 buildings, about 72,000 square meters, 8,000 members and growing with new openings in 2019 and 2020 in many Italian cities. It’s positioned as a platform that helps SMEs, large corporations and freelances to work, meet and boost their activity in a physical and social environment appositely designed and managed for their needs.

You once said: “It’s  important to build up a strong footprint in your home country before moving abroad”. Why? 

We believe that links with the local ecosystem are key to really get in touch with companies and people, then scaling to different cultural, social and business environments. Our goal is to become the point of reference for companies and professionals in Italy first and expand to other countries after that. We believe that links with the local ecosystem are key to really get in touch with companies and people, then scaling to different cultural, social and business environments.

Are there any elements in your offering that makes it specifically «Italian»?

Copernico Centrale, Milan

Most of our suppliers (furniture, food & beverage), for instance, are Italian, as well as our employees, but what makes us more effective in the local (currently Italian market) is our custom approach to the needs of our customers in order to understand their needs and create tailor solutions that make them feel at home. Doing so, we are capable to attract and retain our customers for long-term stays that can even be considered often partnerships.

Most of our suppliers (furniture, food & beverage), for instance, are Italian.

 

What drives the demand for coworking in Italy, nowadays, would you say?

Coworking and flexible offices solutions are more and more asked from all companies and professionals, since they need all-inclusive workspace solutions that help them to focus on their own core business, be flexible, know exactly how much they spend, and benefit from unique business and social networking and boosting opportunities, that are not possible in traditional offices.

Looking from abroad, Italy seems to have been a bit shier than other European countries in terms of coworking penetration. Is it a wrong impression? 

Event at Copernico

In Italy there are currently only 2 players that are as relevant as Copernico, with a 3rd one soon opening, while all the others are very small, local and independent operators with few resources and ambitions. In my opinion that is mainly due to a lower degree of maturity of the Italian real estate industry in comparison with other markets in Europe. Also, the Italian real estate market is very fragmented both in geography and in value terms, with many 2nd tier cities (only Milan and Rome are relevant from an international perspective) and many independent landlords.

The Italian real estate market is very fragmented both in geography and in value terms, with many 2nd tier cities (only Milan and Rome are relevant from an international perspective) and many independent landlords.

What are Copernico’s plans and ambition for the coming 3-4 years?

As said, we are consolidating our presence and strength in Italy, then we want to expand to other European countries.

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.

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.

 

Josh Fine is the COO of Focus Property Group, a real estate operator that not only builds and owns their buildings but operate the businesses that are contained within the building as well, including coworking. We have interviewed Josh Fine to learn more about his experience and knowledge on real estate and his way to understand the coworking and hospitality sector. An interview full of insights and vision on #futureofwork! Josh will also be a speaker at Coworking Europe 2019 this fall.

Hi Josh. Can you introduce the Focus Property Group?

Josh Fine

Focus Property Group has been investing in commercial real estate, primarily in downtown Denver, Colorado (USA), for the past three decades. We acquire, assemble and entitle development parcels, and we develop a wide variety of commercial real estate asset types, including office and coworking, retail centers, hotels, senior housing communities, industrial buildings, and self-storage facilities.

We are long term holders of real estate, meaning that once we develop and lease out our real estate, we continue to manage and own the assets. One unique aspect of our business model is our willingness to create, own and manage operating businesses within our real estate.

In other words, most real estate companies will build and own the buildings but not operate the businesses that are contained within the building. However, we enjoy the entrepreneurial aspect of operating companies. Therefore, rather than build, for example, a self storage facility and then hire a self storage management company to run the business, we created our own self storage brand, hire our own employees and run that business ourselves. It is the same with coworking. We created the Enterprise Coworking brand and all of the Enterprise Coworking employees are on our payroll.

You have been involved pretty early in the coworking wave while investing in hotel industry as well. To what extend are the lines between those “hospitality” driven activities blurring?

Enterprise Coworking, Denver

I am constantly telling our coworking staff that we are in the hospitality business. It has become a mantra of our company. Office space is not new. The innovation of coworking is that it introduces a hospitality or guest services aspect to office space. Our members don’t just want a convenient space to work. They want experiences that will enrich their lives and careers. They want concierge services to help them with all of the challenges that arise during the day so they can focus on what it is they came into the office to do. When a member approaches one of our community managers with an issue, I tell our team to imagine you are at the front desk of the Four Seasons Hotel. Hotel guests are often in disorienting, foreign environments and the hotels that truly shine are the ones where the team makes the guests feel welcome, at ease, and excited to dive in to all of the great things that brought the guest to that city in the first place. It is the same with coworking.

The hotels that truly shine are the ones where the team makes the guests feel welcome, at ease, and excited to dive in to all of the great things that brought the guest to that city in the first place. It is the same with coworking

The spaces that will separate themselves from the competition will have a guest services oriented staff that makes members feel welcome, well cared for, and excited to dive into the projects that brought them into their workspace. Because the service offering is so similar, it is true that lines are blurring between hospitality and coworking. For one, the skill sets overlap so much that many of our best hires come from hospitality. And you see hotels are increasingly getting into the coworking space. Pioneering hotels like the Ace Hotel in New York City, the Hotel Eaton in Washington DC, the Zoku Hotel in Amsterdam, and many others have full fledged coworking spaces and welcome the coworking public to consider the hotel as their living room or office, with free wifi, free-flowing (if not free) coffee and beer and other coworking-like amenities. Business is becoming increasingly nomadic and I predict that we will see more and more joint hotels & coworking spaces that co-locate, share amenities and staff, and synergistically energize each other’s vibes.

The spaces that will separate themselves from the competition will have a guest services oriented staff that makes members feel welcome, well cared for, and excited to dive into the projects that brought them into their workspace

Why does it make sense for a buildings owner company to operate coworking space itself ? Why not partner up with third parties operators?

It certainly doesn’t make sense for every building owner. Coworking is a complex operating business and many landlords simply don’t have the bandwidth or aptitude to run such an intensive operating business. However, the explosive growth of coworking has resulted in a spillover effect where traditional office tenants have come to expect more coworking-like amenities in their office buildings, and office building owners will need to more and more inch toward the type of offering that users can find in coworking spaces. Since office building owners will need to increase service offerings anyway to stay competitive, those who can figure out how to jump into the coworking business will be at an advantage and will also be able to benefit from two profit centers: the rent that the coworking operator pays to the landlord and the operating profit that the coworking operator earns from the members.

Those who can figure out how to jump into the coworking business will be at an advantage and will also be able to benefit from two profit centers: the rent that the coworking operator pays to the landlord and the operating profit that the coworking operator earns from the members.

Enterprise Coworking, Denver

A building owner who reserves part of their building for coworking will likely also benefit from higher overall occupancy. Companies in the building who “graduate” from coworking and want their own space may be able to rent another office space in the same building. And when tenants leave the building, the landlord always has the possibility of expanding the coworking space into the former tenant’s space and thereby gobble up any vacancy immediately. Once a landlord has a successful track record as a coworking operator, it makes it easier for a landlord to acquire or develop additional buildings, because the landlord will have a tenant in their “back pocket” (the coworking space) that can immediately occupy part of a new building.

From the operator’s side, the reason to own rather then rent space is very compelling. In traditional office leasing, there is generally an equilibrium of power between landlord and tenant. Office leases tend to be for shorter periods than retail leases. When it comes time for renewal, the landlord will need to be reasonable and will have to closely reflect market conditions because the tenant can move to a new office building if the landlord tries to increase rent too dramatically. It is certainly a hassle for a company to move, but a CEO can decide to do it and all of the employees will have to follow suit.

But coworking spaces are more like retail users – they are much more tied to their buildings. Just as it is difficult and much more risky for a retailer to move (because there is no guarantee that its customers will all move with it to the new location) so too it is extremely risky for a coworking space to move. The coworking operator can sign a new lease in a new building, but there is no guarantee that the members will follow suit. If the members do not follow, the operator will be starting to build the business all over again. Therefore while building ownership certainly comes with significant risks of its own, it mitigates a major risk of the coworking model.

Coworking spaces are more like retail users – they are much more tied to their buildings. Just as it is difficult and much more risky for a retailer to move, so too it is extremely risky for a coworking space to move.

Do you see a difference in the way coworking spaces are operated between the stand-alone supported-by-a-property-owner-company and franchised/brand coworking spaces? 

We compete head-on with franchised coworking spaces and large brands and I do not believe that members in our space are looking for anything dramatically different. Most members are looking for a vibe that meshes well with their personality and work style, for a convenient location, for robust amenities and for a welcoming and engaging community. One difference I have noticed is that when you own your building there is no passing the buck. Any issue with the building becomes your issue. You cannot blame the building management, for example, if the temperature is too cold or if an elevator is out-of-service.

However, an advantage we have is that when you own the building, anything is possible in terms of dealing with a member issue. Sometimes a member complains about something that the coworking operator cannot control because it is the purview of the building owner and manager. For example, many office buildings have communal restrooms that are maintained by the building management. They may have a snack bar or coffee shop in the lobby. They may have a parking facility used by the tenants. If a member has an issue with any of these things, all the coworking operator can do is complain to their landlord to fix the problem. When you own the building, the buck stops with you. This is both a blessing and a curse. We have the power to fix any problem and can control more completely how our members experience our space. On the other hand, when there is a difficult issue we cannot look to others to address it.

If a member has an issue with any of these things, all the coworking operator can do is complain to their landlord to fix the problem. When you own the building, the buck stops with you. This is both a blessing and a curse.

In the short future, coworking growth is expected to be fueled by Small and Medium size businesses, not only by freelancers and startups. Do you see this evolution coming in Denver? 

Absolutely. The bulk of our membership is small companies with teams of 4-12 people. Freelancers are increasingly becoming a smaller and smaller minority of our membership base. There has been talk for the last several years of enterprise-level companies (with much larger teams of 50+ people) abandoning traditional office leases and moving into coworking. I don’t think we are there quite yet, although there have been some notable examples of large companies moving into coworking spaces in Denver. At our space, we do have some large companies, with our largest company topping out at about 80 employees. However, we have also seen companies move out of our space when they get to 20 or 25 people.

The bulk of our membership is small companies with teams of 4-12 people.

I think it very much depends on the personality of the company. Some companies will always want their own space and will move out of coworking once they reach a certain size. So I think there will always be a market for traditional office space and the obituaries of traditional office space are a bit premature. However, a few companies have grown to love coworking and will stay in a coworking space for as long as they can be accommodated. Spaces like ours that can accommodate large teams will be able to find companies that want to move in. Nonetheless, I think the bulk of the demand comes from small companies, and we are building out new spaces with a heavy emphasis on private suites for teams of 4-12 people.

Companies have grown to love coworking and will stay in a coworking space for as long as they can be accommodated.

In-house Gym, cafés,… We see a race to provide the most exciting, robust and unique amenities in order to distinguish from the competition. How far will it go?

Our flagship location in the RiNo neighborhood of Denver has both an in-house café and espresso bar as well as a fitness center. The types of amenities you need can depend largely on your location. If you have a trendy espresso bar next door, you may not need to offer one in your coworking space. I think the best way to choose which amenities to offer is to make sure there is a diversity of “types” of spaces.

There should be a quiet space for heads-down work where you won’t be disturbed. There should be a buzzing, social space. There should be a networking space that is conducive to impromptu meetings and making connections. In our flagship space, these needs are filled, respectively, by our library, our pub and game room (that we call the “rathskeller”), and our espresso shop. However, other coworking spaces can fulfill these needs with amenities that may be less space- and operationally-intensive.

Shall all those amenities be provided by the same operators? 

I mentioned earlier how coworking spaces and hotels are beginning to “blur” their boundaries and I think that coworking operators to remain competitive will need to learn to operate the same type of amenities as hotels. Just as a hotel doesn’t just need to know how to rent out hotel rooms, but also how to operate a restaurant, coffee shop, gym, pool, event space or conference center, so too will coworking operators needs to establish these competencies. I think that co-locating – especially hotels and coworking – could be a great solution to this operational challenge.

There is a huge overlap between the type of amenities that hotel guests and coworking members want. Shrewd coworking operators will partner with hotels – or join forces and completely merge their businesses – and thus have the scale to offer more robust amenities than either could on their own. Regarding the price, I think a hotel analogy is apt here as well. There is a huge diversity in hotels. You can stay at a one- or two-star motel that gives you very little other than a place to sleep, or a five-star resort that provides a slew of services, like multiple dining venues and bars, a spa and pool, and dramatic public spaces. Of course a guest will expect to pay a lot more for the latter. There will need to be similar differentiation in coworking spaces. However, an operator who wants to charge top-of-the-market pricing will need to offer five-star amenities to retain members.

Just as a hotel doesn’t just need to know how to rent out hotel rooms, but also how to operate a restaurant, coffee shop, gym, pool, event space or conference center, so too will coworking operators needs to establish these competencies.

Would you say it is US specific or are those trends reaching all continents from what you see?

We live in a global village and I am not even sure the trends I described originated in the United States. I just stayed at a hotel in Herzliya, Israel, which was connected to a vibrant coworking space. In the basement was a huge fitness center (much bigger and more elaborate than you would typically find in a small hotel) complete with a dry sauna and steam room. I went down to the fitness center in the morning and it was packed in equal parts by hotel guests and coworking members (as well as people in the community who simply bought a gym membership). This is the type of co-locating and amenity sharing concept that I think will become more commonplace as all of these businesses try to supersize their amenities in an increasingly competitive market.

Working from satellite offices can help employers, employees and the world in general in many ways. We have interviewed Jenny Schäpper-Uster, co-founder at VillageOffice in Switzerland, to find out more about her story, the principals behind the platform and the vision and mission it represents. VillageOffice has been a long time contributor to the Coworking Europe conference.

Hi Jenny. Can you introduce us to VillageOffice?

Jenny Schäpper-Uster

VillageOffice was founded in early 2016 with the intention to help catalyze the development and expansion of coworking offerings outside of the cities (i.e in the suburbs and rural regions of the country).

In theory, the greater the offering of “community based coworking spaces” in the periphery, the less the workers have to commute. This reduces transport needs to the already over-populated city centres (and thus also CO2). It saves everyone, employers and employees, time and money on a daily basis. It also saves millions (if not billions) of investments in capacity extension of today’s roads and railways. Additionally, people will be back working close to where they live. It will re-boot the local economy. The available time can be reinvested in family, local community work, politics, sports and free-time in general.

Today our main focus is coaching municipalities and local citizens on their way to establishing locally embedded coworking spaces. To drive the visibility and accessibility to our partner coworking spaces around the country, we offer coworkers (corporates or individuals) an national membership which is valid in all of our partner spaces – 60 to date.

Our digitally remote, self-organized and holacracy-based cooperative has grown to a team of 24 (7 core and 17 extended) and looks forward to many fascinating, agile years to come.

People will be back working close to where they live. It will re-boot the local economy. The available time can be reinvested in family, local community work, politics, sports and free-time in general.

You choose to incorporate as a cooperative. Why did you need to put a legal structure in place to connect all these independent spaces?

It was important for us to signalize from the get go that our main priority is not to build quickly and exit rich with a stock corporation. As a cooperative our intention is to become and make profits but all profits are per se reinvested into the cooperative. Additionally, everyone’s investment is equally weighted. Regardless if you invest CHF 50.000 or CHF 10 each cooperative member’s voice carries the same weight. It was extremely important for us to signal to everyone that we are serious about us wanting help you help yourself. Plus the cooperatives are deeply embedded and appreciated in Switzerland which itself is federal cooperative of states.

Why not simply use one of these many online booking platforms available around?

First of all we’re not just an online booking platform for the reasons previously mentioned. Secondly, most platforms offer a multitude of international options for the freelancing digital nomad but none have achieved wide popularity among the Swiss coworking spaces, coworkers or corporates. As a result, you may find a handful of options in Switzerland compared to hundreds in the US. Thirdly, none of the platforms are localized i.e available in German and French which is important if you wish to reach all Swiss and not just the English speakers. We wanted a Swiss solution for the Swiss market.

Most of the international online platforms offer a multitude of international options for the freelancing digital nomad but none have achieved wide popularity among the Swiss coworking spaces, coworkers or corporates.

How do you make the clearance between the different spaces, money wise? Is it a package or do each space report about tenant checkouts in their respective spaces?

We have a simple check-in system where coworker visits per space are tallied. Our partner spaces are reinbursed for these visits on a quarterly basis.

After 3 years, what are the first takeaways? What went well and what needed some adjustment?

We are still very early in a developing market. As a result, our offerings, particularly in the first two years, had to be explained in detail over and over again. Many corporations and towns were not ready to be the first movers and waited until others went through “beta testing”. We have readjusted and sharpened our focus multiple times in the past years in order to accommodate those market segments that were ready to move. To our great surprise municipalities are quicker to enter into discussions and start projects with us than corporates. Who would have thought!

To our great surprise municipalities are quicker to enter into discussions and start projects with us than corporates. Who would have thought!

What are their main friction points?

Corporations get the idea and know that this is they way of the future but are reluctant to accept that they could profit from these models today instead of in 5 years from now. I strongly believe that the lack of trust in employees is the main barrier coupled with the need for new management styles. Those managers in “power” today would prefer to continue on as they always have and let the next generation deal with the future of work. As a result, many companies may miss the boat with regards to employer attractiveness when the younger generations (a much smaller population) chose for whom they wish to work.

Corporations get the idea and know that this is they way of the future but are reluctant to accept that they could profit from these models today instead of in 5 years from now. I strongly believe that the lack of trust in employees is the main barrier.

Did you collect data about employees commuting time decrease and well-being increase?

Yes, during our coworking experience last year, we collected such data together with the University of St. Gallen. Our sample was small but we were able to confirm many of our hypotheses. We also have a formula on our website which calculates potential time, km and co2 savings of every town in the country if their citizens commuted less because they had a local coworking space.

We have a formula on our website which calculates potential time, km and co2 savings of every town in the country if their citizens commuted less because they had a local coworking space.

How do you market VillageOffice as a product? Have you sales people visiting companies? Are their some profiles more represented than others?

Many of the requests for coaching come through our website and the public awareness we have created by participating and presenting the VillageOffice case at conferences and through word of mouth recommendations from other affiliated organisations for instance Smart Cities or RegioMove. We do not currently focus on corporates (for lack of resources, we’re still a startup) and thus have not sales force for this market.

What are the conditions to join the network and is there some minimum standard level to be delivered by each member space?

To become a VillageOffice partner space, we have a list of criteria which have to be met in order to ensure that the quality of the location and community is as high as possible. We also try to visit each space and know the people running them personally.

According to your website, by 2030, every person in Switzerland will reach the next coworking space within 15 minutes. Is there a plan for it? 

Our goal is to have 1000 VillageOffice Partner spaces by 2030 which would mean that every Swiss would have a space within 15 minutes of their home. We are on our way in that we are helping to develop many new communities and connect existing ones. We still have a lot of work ahead of us but we also still have 11 years and definitely expect the market to mature and take off in the next few years. The Swiss department of economic affairs (SECO) has identified coworking as an official means to help promote regional economies. This helps us tremendously when entering into negotiations. The goal is much more though a commitment of ours, that we will stay at it until we have activated the necessary momentum to make this happen.

The Swiss department of economic affairs (SECO) has identified coworking as an official means to help promote regional economies. This helps us tremendously when entering into negotiations.

The percentage of teleworkers has been gradually increasing over the past 20 years in the US. Modern employees demand home-working options but what about teleworking in coworking spaces? How do coworking and teleworking work hand in hand, nowadays, in Europe? We asked Xavier de Mazenod, one of the most famous teleworking and coworking expert in France.

Hi Xavier. Can you introduce yourself as well as Zevillage?

Xavier de Mazenod

Being a former journalist, I created the company Adverbe in 2004: A consulting and training company regarding new forms of work. Since then, we have been publishing the Zevillage website, a site specialized in the transformation of work, organizations and workspaces. We try to convey to companies all the practices and changes we observe.  

How would you depict the acceptance of teleworking in France, in 2019, and what still keeps companies from embracing it fully?

Teleworking is an old idea in France that goes back to the 90s. But in reality, it has long progressed underground and informally in companies. Few had formalized it and incorporated it into a human resources strategy.

For the last 3-4 years, we have witnessed a rapid change. Teleworking has become part of HR policies for quality of work life balance. Perhaps because companies are realizing that millennials are demanding flexibility in the organization of their work and a greater harmony between their personal time and their time at work. This is important for the image of the company, its “employer brand”. We even have testimonials from young candidates refusing job offers from companies that did not set up teleworking.

The anti-teleworking blockade is still coming from the same cultural cause as 20 years ago: a presidential view of management, a too hierarchical organization and management methods that rely on control and not on trust.

This is not to blame on managers, they do as they can and as they have learned. It’s just a statement.

For what you know, do you see a wide difference between countries in Europe with respect to the teleworking acceptance rate and practices?

Less than ten years ago, in 2009, there were two distinct blocks: Northern Europe (32.4% of the employed population in Finland, 26.8%, 22.3% in the UK) who already had a high rate of teleworkers, and southern countries (France 8.4%, Italy 5%) at the back of the pack. Since then, France has come back quickly. In fact, teleworking works as a indicator of the degree of trust between managers and employees.

The French utility group EDF announced the creation of internal coworking all over their locations spread out across France. Is this a new step in teleworking policies by French companies, would you say?

I will not say that corpoworking (“Corpoworking” is a word used in France in the corporate world to refer to a coworking model designed for a specific corporate audience which has no equivalent anywhere else) is a mutation of teleworking – but rather a complementary offer. An offer that also reassures companies, since their employees remain in a controlled environment.

Until about 5 years ago, in France, teleworking was practiced in 80 or 90% from home. Since then, employees have greater access to “corpoworking” mainly because professional-level offers have appeared with “industrial” players such as Bouygues Immobilier and Accor or the evolution of former business centers like Regus or the emergence of operators like WeWork (although they claim to not be coworking anymore).

These offers have reassured businesses, even if we do not necessarily find the spirit of historic coworking spaces there anymore. On the other hand, we have to understand that when one teleworks only one day a week, he/she will prefer teleworking from home. Once weekly duration increases, the need to leave one’s home or not to be isolated, often manifests.

Can you mention some other examples of companies doing the same or dealing with another approach?

Corpoworking is not a very massive phenomenon. In France, we can mention SNCF or Orange, among the most famous companies to have adopted it. In Switzerland, I would mention examples such as SIG, BrainGym or Swisscom. In Germany, Modul57, TUI, AppHaus or SAP.

It seems companies are still reluctant to let their employees work out of third parties coworking spaces. Is this the case? Why?

That’s true, indeed, for France. Some companies fear that giving their employees space in coworking spaces creates a double cost: one for the office and another for the coworking space. However, the right solution would be to think about the flexibility of the company in a global way by integrating telecommuting, improving office spaces and using coworking spaces. One only has to look at the dramatic transformation of the Belgian social security, for instance, which introduced flex-office and teleworking in order to increase people’s productivity, motivation and quality of life… And it ultimately worked.

Does it start because of a change in companies’ culture or because of the growth of the coworking offering?

I would say both. Without understanding the coworking phenomenon, a company is unlikely to let its employees work outside their offices. But coworking is becoming more and more successful, probably because it gives real estate businesses flexibility. And without sufficient supply of space, no access to coworking is possible.

Do you see the coworking offering in France improving to host companies’ employees, fitting needs in size, locations and amenities?

Nowadays, yes. In bigger cities, at least, all coworking spaces are well attended, and there are also spaces in more rural areas. In France there are 1,800 spaces (all types of third-places included). That’s a very fast progression. And the quality improves. We see that companies are using them more and more. It’s no longer about flexible workstation rentals, only. Coworking also becomes a natural solution to host temporary project teams for example. In that case, the objective is to put them calmly outside the company environment and confront them with diversity. For that reason, you see more and more tools coming up, such as creativity rooms, within coworking spaces.

What is missing?

Time to convert companies to this mode of management.

Speaking about geography, do you notice big differences in terms of behavior between Paris, on the on hand and the rest of France on the other hand?

Image source: Mutinerie Village, Coworking in the French Countryside. Copass SAS

The difference in behavior is more between the city and the countryside than between Paris and other cities in the province. The economic model of the urban spaces is viable because one can reach the minimum size for a correct profitability, around 1500/2000 m2. In rural areas, the smaller size of spaces, linked to a lower population density, makes breaking even difficult.

Who are the drivers of change (players) in France in the new ways of work? What excites you? What disappoints you?

There are many innovators in the new forms of work. One could even say that this innovation is a characteristic of third places. To name a few, I will mention Neo-Nomade, a platform that connects researchers and the suppliers of workspaces. They have a very fine knowledge of the market and are one of the important players who have changed the clientele of coworking spaces to a professional audience. I also want to mention Bureaux à partager, which is growing strongly in major French cities. Among other things, they have acquired a good know-how to install pop-up coworkings. We can also mention Now coworking who chose a high-end positioning with lots of activities offered – similar to the WeWork model but maintaining a stronger culture of community.

Their ambition is to open at least a dozen places in major French cities, outside Paris, in mythical places. Startway’s strategy is also interesting. It is that their spaces have a strong “entrepreneurship” orientation, with a lot of activities for the members. La Poste has entered into their capital and accelerated their development.

Finally, on the side of the spaces that are more “third-places” than coworking we can say that each large or medium city has one. I will mention Darwin in Bordeaux, the WIP being developed in Caen or The Station in the old station of Saint-Omer (14000 inhabitants).

How far do you see the workforce to be physically distributed in the coming 5 years time?

Difficult to know but if we look at strong trends, in France or elsewhere, it is likely that freelancers will be much more numerous than today. We are talking about 50% of the active population in the United States by 2030. It means a lot of flexibility, freedom in the choice of places to live and a greater need to freely recreate collective work in coworking spaces.

Some international studies claim flexible workplace will represent 30+% of the whole office market. Are we heading toward that direction?

In addition to the rise of freelancers phenomenon, we must add the demand for real estate flexibility from major rental companies. They no longer want the rigidity of conventional leases of 3-6-9 years and negotiate to get about 20% of space in flexibility. And who can better offer that than a coworking space?

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 😀

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.