The term coworking refers to a shared workspace among professionals from different companies. These are offices where various types of profiles and sectors converge, which is precisely the biggest difference between a coworking space and a traditional office.

Additionally, we can list some common features of coworking spaces that make them increasingly attractive to startups and large companies.

- Spaces. They are designed to adapt to new work models and user needs.

- Reduction of business costs. Not only are they more economical than a traditional office, but they also offer multiple contracting options such as passes, hours, etc.

- Services. They offer high-speed internet, as well as meeting rooms, printers, coffee, rest areas, among others.

- Flexible hours. They are usually open 24 hours a day, seven days a week, to accommodate all types of professionals.

- Location. These buildings are usually located in central areas with good access.

Finally, it should be noted that a significant part of the success of this business is based on the professional relationships or networking that can be established in these types of environments, which foster a sense of belonging to a community of entrepreneurs who can share common projects; something similar to what coliving spaces promote in the residential market.

Growth of coworking spaces

The proposal of flexible offices has been consolidated, with both startups and large corporations opting for this modality. According to a survey by Cushman & Wakefield, 60% of managers of these types of spaces reported a 75% occupancy rate in 2023.

In Spain, Madrid and Barcelona are the main markets chosen by these operators to develop their activities. They have just under 500,000 square meters of flexible space available, according to CBRE's European Flex Office Market Update. This amounts to about 231 spaces in Barcelona and 181 in the capital, followed by Valencia, Málaga, and Alicante, according to another report: Coworking Spain's State of Coworking in Spain 22-23. 

The price of a desk in Madrid and Barcelona ranges from 325 to 500 euros per month, according to CBRE. In Europe, London is the largest coworking market with over two million square meters and prices ranging from 500 to 1,500 euros per desk, although Paris is the most expensive capital with prices up to 1,700 euros.  

By sectors, tech, media & telecoms account for more than half of the desks, as well as the highest number of transactions carried out by the consultancy (36% of the total). They are followed by financial and professional services (29%), life sciences (19%), and manufacturing and consumption (16%).

After the post-pandemic boom of these spaces, a stabilization has been detected. However, the hybrid work model has taken hold, and it is estimated that 30% of the total office supply will be flexible spaces, according to Savills Aguirre Newman.

Investment opportunities in Coworking

The profitability of the coworking model depends on multiple factors such as location and size, as well as the services offered. The estimated revenue of the major coworking players in Spain is €259M in one year, according to Coworking Spain. According to Savills Aguirre Newman, the profit margin ranges between 11% and 15%.

Can you invest in coworking real estate projects through tokens? At balize, we work with the coworking product as "balize capital," focusing on long-term operations with flexible and functional solutions. We are currently studying several projects of this type to launch to our private investment club in the coming months.