Can Coworking Feed Colorado's Economic Fire?
The inclusive, flexible future of where you work
For businesses of all sizes, Denver is hot and Colorado is on the move. The city’s economy grew 17.9 percent from 2011 to 2016, ranking it 10th among large metros across the country, according to Headlight Data. And U.S. News and World Report ranked Colorado as having the strongest economy among all 50 states last year. Among the diversity of industries contributing to the boom: Digital technology employed 25,000 Coloradans in 2017, up 20 percent over the previous year. Real estate, agriculture, energy and tourism are also among those sectors doing well.
The current environment is ripe for opportunity – not just for the talent spurring the growth, but also for those that serve them. Spaces, the Amsterdam-based pioneer of creative working environments, recognized the opportunity, expanding into Colorado’s market. The growth is part of the workspace revolution taking place across the U.S. – where the brand will launch a number of new locations throughout 2018. Indeed, the coworking sector is projected to tally a compound annual growth rate of nearly 24 percent between 2016 and 2020.
Spaces already has three coworking addresses up and operating in Colorado: Spaces Denver Ballpark, Spaces Broomfield, Arista amid the Boulder-Denver corridor, and Spaces Old Town in Fort Collins. Whatever the address – in Colorado or across six continents – Spaces clients enjoy access to all of them.
Cowoking has a transformative effect on the way people work. Distinct from traditional closed-door office settings, coworking spaces offer dynamic environments that empower and inspire people to be creative and work collaboratively. Designed for flexibility, with dedicated workspace in contemporarily stylish open-door settings, with wide-open spaces that encourage communication and collaboration, and private offices and meeting rooms for when clients need more privacy.
Successful coworking spaces offer convenient high-quality business services, included in the rate, such as high-speed Internet connection; communication and presentation technologies with technical support; shipping and receiving; and fresh coffee and food. At Spaces, organized social and learning events engage and inspire clients, creating a sense of community. Spaces locations maintain calendars of social and learning events, including a global partnership with TEDx Talks that brings events hosted by community residents to Spaces locations worldwide. Clients also enjoy value-added features that differentiate Spaces from other coworking companies, such as European-inspired concierge-style services and Barista-served coffee.
Then there are the bottom-line benefits.
From large corporations and Fortune 500 companies to startups and solo entrepreneurs, business leaders from companies of all sizes choose to operate out of coworking spaces, rather than lock into leases. Since these spaces are available via as-needed service agreements, companies pay only for the space they require as they require it. Beyond offering upfront capex savings versus conventional leasing, this arrangement plays right into the anticipated new leasing standard of International Financial Reporting Standards, due in 2019, which will see public companies listing office leases as liabilities while service agreements are exempt.
Reduction of capital costs with very little impact on balance sheets.
As its name implies, coworking is an inclusive way of working. It also appears to be the future of office space. A recent report from the real estate services firm JLL, predicted that, “by 2030, 30 percent of corporate real estate portfolios will comprise flexible space, including coworking, incubator and accelerator spaces.” Another survey found that just over half of businesses that adopted a flexible workspace model were driven by a desire to reduce occupancy costs, while 38 percent wanted to be more agile as they seek to grow.
And what business doesn’t seek to grow?
Coworking is all about building communities of interesting people who are focused not just on work, but taking their careers into their own hands, connecting with likeminded people, shaping and sharing ideas and enjoying themselves. Just as every industry is different, so too is every coworking client: People of all ages and backgrounds, and companies of all sizes, are drawn to these spaces.
The one thing they share is a passion for working flexibly – as opposed to just working.
Michael Berretta, VP of Network Development North America, Spaces