Tag: Coworking Europe

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

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

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

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

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

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

Aticco, Barcelona

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

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

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

Aticco, Barcelona

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

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

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

Aticco, Barcelona

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

Our coworkers have been the best ambassadors of the brand.

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

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

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

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

Aticco, Barcelona

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

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

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

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

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

What about your plans for the rest of Spain?

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

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

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

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.

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

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

Richard Malle

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The coffee break has been a staple of the workday since the early days of modern industry. Office spaces soon became ornamented with automatic coffee machines and afternoon coffee orders became a daily ritual.

Yet, these breaks were often limited, to ensure that workers weren’t spending too much time away for their desks.

Today the tables have turned. More traditional companies now realize that social concepts, like the communal workspace, actually boost employee productivity and coffee culture is a major part of this. Grabbing a latte is no longer just something workers do on their break, but rather a vital part of a productive workday.

Offices around the world are now jumping on this trend, rapidly moving away from placing emphasis on hours worked and focusing more on socializing in order to promote communication and collaboration.

Have a Cup of Corporate Coffee

International office design experts, Steelcase, recently published an article titled “Real Work”, where they explored companies that are currently integrating alternative spaces into their official workspaces. They highlighted the fact that being productive is no longer limited to the desk, but can also take place while grabbing a coffee with colleagues.

It is important to remember that these office cafés are not like the ones around the corner from your house, but actually considered to be another type of office. The creation of the workplace coffee shop is a result of blending “first place” and “third places” to create a “second place” that gives “employees access to environments that offer employees the relaxed amenities of home”.

The “Real Work” article made reference to several examples of alternative workspaces, including Google’s latest endeavor the Coffee Lab. The author paid a visit to Google’s latest addition to the London campus, describing it as a “neutral territory, perfect for meeting outside vendors or partners”.

Creating added value through First, Second and Third Spaces 

Betahaus, Berlin

Betahaus, which first opened in Berlin in 2009, and has since expanded to Barcelona, and Sofia, is a prime example of a contemporary collective office that has created added value through various qualities derived from alternative spaces.

By combining the “best aspects of a Vienna-style coffee house, the library, home office and university campus”, Betahaus offers their members a workspace that encourages both social interaction and productivity through architectural diversity and alternative workspace.

In fact, when you enter Betahaus Berlin, your first impression is their café. The multifaceted space that leads to the upper floors, where the official “coworking” is happening, is always buzzing with people talking, working on laptops and enjoying a freshly cooked meal. One gets the impression that just as much work is being done over a cup of coffee as it is over a computer in the quiet meeting rooms.

As the workplace changes, things that once seemed counter-intuitive, like working in a noisy coffee shop, are now being reconsidered in the professional landscape. Now more than ever we realize the importance of employee wellbeing as well as the benefit of developing alternative workspaces.

Amanda Gray