Co-Working Spaces: The New Trend in Real Estate (Part 2)

Problems with Shared Workspaces

Cost Allocation: Allocating costs on a shared workplace can be a very difficult task. In a fully leased office, the company pays all the electricity bills, water bills, property taxes etc. However, in a shared workplace, these costs need to be apportioned. This is where disagreements begin to happen.

Some companies believe that headcount in a more appropriate metric to allocate costs. On the other hand, other companies may believe that headcount is more appropriate. Also, since the bill is being shared, companies will not have an incentive to minimize the usage of electricity, water or other such scarce resources.

Developers are trying to circumvent this problem by building these costs within the lease prices. However, that ends up causing wastage of resources and even leads to disputes in many cases.


Privacy: Shared workspaces are cheaper and may have better infrastructure. However, most companies would not be comfortable in locating their critical operations to such facilities. The reason behind this is simple. There is a high chance of data or other intellectual property being stolen. Also, if the strategy of a company is leaked to its competitors, it may lose its competitive edge. The shared workspace model, by definition, cannot overcome this problem. While shared workspaces offer affordability and convenience, they may not be suitable for businesses that handle sensitive information or rely on confidentiality for their operations. Overall, while co-working spaces offer many benefits, companies must carefully weigh the pros and cons before deciding if this trend is right for them.


In conclusion, the future of workspaces seems to be a blending of shared workspaces for routine tasks and leased workspaces for sensitive operations. While shared workspaces offer cost savings and convenience, they may not be suitable for handling critical data and strategies due to privacy concerns. As developers work towards finding solutions to this challenge, it's clear that a balance needs to be struck between cost-efficiency and security in the workspace environment.

If you're interested in learning more about the real estate business and how it intersects with the evolving workspace trends, consider signing up for the real estate business course by School of Estate. Stay ahead of the curve and prepare yourself for the future of workspaces.