Just about a year ago, co-working juggernaut WeWork was in rapid expansion, opening a new Boston Metro location nearly every month. With fifteen locations in operation and four more in the pipeline as of 2019, WeWork’s co-working model was turning heads. But after new lease agreements failed for undisclosed reasons, analysts are questioning WeWork’s staying power.
On a smaller scale, the failure of Coalition Space in Boston’s Chinatown neighborhood is an evolving study. After months of unpaid and under-paid rent, the building owner filed eviction against the tenant-entity. Member-users of the space were left in the cold.
With these examples in mind, some of the negatives of using co-working space are obvious. Namely, the fact you can be ousted from your shared workspace without much warning, even if you’ve paid your own rent. Imagine showing up at your co-working office only to find the door locked. Now, imagine you’re expecting clients that day! Not only have you lost any rent you’ve paid, but you could take losses from the business disruption.
Co-working has other issues as well. Most are first-come, first-served situations that do not grant you an assigned desk. When an assigned desk is available (for an extra fee) there are usually limited hours of operation. If you are burning the midnight oil to get your startup off the ground, you may need 24-7 access. In some locations, this could be available, but the convenience would come at a premium. You’ll also forgo any personal decor or specialized furnishings.
For individual users, co-working space can be a good alternative to camping out with your laptop at the coffee shop. For small businesses with employees, using co-working space can be cheaper than traditional office space – but it doesn’t come without risk, or without drawbacks. Before you set up shop in a co-working space, let us help you explore your office space options in the Boston Metro!
When you are ready to begin, relocate or expand your business, team up with the Jay Nuss Realty Group, LLC! Whether you are thinking of buying, leasing, or investing in Boston Metro commercial real estate, we can help you find the ideal property. Contact us today for expert guidance and tenant representation!