I’m a big supporter of coworking having spent 20+ years in the sector and worked from a vast selection of different buildings operated by all kinds of brands. But cons of coworking space exist.

For many, all the flexibility, inclusivity, quality and service in the world will not make the coworking product a viable choice.

It’s therefore worthwhile exploring how some of the cons of working space could be a turn-off for a prospective user. I won’t rebut these points here, there will be plenty of reasons why using serviced offices is an excellent idea and you can browse our blogs for more content around this.

If you are a client exploring flex as a suitable solution from a position of pre-existing doubt, you should engage your chosen  broker (or the operator directly) in a balanced discussion around these issues so that they can provide peace of mind or explain that they are not out-of-the ordinary but that they are there.

If you are looking to find the right broker to help you, our unique directory can help you pin-point the perfect match using a combination of professional and personal filters.

Here are 6 cons of coworking space to consider

#1

You do not own the space. Coworking is offered on the basis of a license agreement as opposed to a lease. This means you do not have rights to the space itself, you are just subletting it from the operating company who are in turn leasing it from the landlord or managing it on the landlord’s behalf. If owning something is psychologically important, then there’s few ways around this one.

#2

You can be moved. One of the most contested clauses in the terms & conditions of coworking contracts is the one which allows the operator to move you from one office to another. Since you do not have the protections of a lease, this clause will always be present. It exists to enable the operator of space to reshuffle the make-up of a floor to make room for large companies or expansions of existing clients. Clearly, the smaller an office you occupy the greater the risk of this clause being envoked. Typically the operator will promise to move you to a space of equal or larger size and of an equal or higher quality as compensation but ultimately, if this happens, there is nothing you can do to prevent it.

#3

They can close really quickly. Each building within the portfolio of a coworking operator will be set up as a separate company and billing entity. This makes it easier for them to be shuttered at short notice if the worst comes to worst and they need to close down the operation. Whilst this happens rarely, it does happen. Flexible office operators are running a for-profit business and, at the end of the day, if a specific location is not delivering the margins they need then it may be wound down. You should expect some notice if this happens, but sometimes you’ll only get 30 days. Sometimes less unless this is specifically mentioned in the terms & conditions you sign.

#4

Higher footfall = higher wear and tear. Let’s tell it like it is: serviced offices pack desks in. A 250sqft space might be labelled a 5-person or 6-person office. This is because desks are getting smaller and in-office storage is less and less a need. Anyone coming from a lease background will be taken aback at the sub-40-sqft-per-desk ratio but this is offset in flex buildings through the provision of break-out space, lounges, booths, roof terraces etc. Nonetheless, a typical flex space will have a higher per sqft headcount than a conventional building. This means more propensity for things breaking as more people use them. Lifts, coffee machines and toilets are the main culprits.

#5

Sharing. The very thing that makes coworking so appealing (a melting pot of companies and people creating networking and collaboration opportunities) can also make it pretty annoying. Toilet facilities on a floor supporting 200+ people will be a typical complaint. It’s a rather difficult job keeping them tip-top although many operators hire a small army of support staff here. The lunch-time rush can be troublesome – both from a noise, smell and space point of view. Most lounges max out capacity-wise. Telephone booths and quiet rooms, whilst an awesome invention, are also very popular. The phone booth “hunt” is a common occurrence where someone walks the floors, laptop in hand, tying to find a free booth in time for their scheduled video call.

#6

Branding and signage. Because of #1, you are not going to have a sign at the main building reception with your company name / logo. This is because you are not occupying the space, the flex operator is occupying it. You are licensing the space from them in turn. You may have the ability to put your name outside the main reception for the flex space, and you may have the option of putting a discreet sign / logo outside of your main office door. Within the room you pay for, you can do what you like. But when you step outside of it, anything brand-related will be significantly restricted. External signage is definitely a no-go so if you rely on passing trade, this might be a big hurdle.

Overcoming cons of coworking space

With cons of coworking space, as with every potential negative, the best approach is to get ahead of things and talk about it.

Asking questions of your broker initially, or the operator during a viewing, will give you useful information. There’s nothing wrong with being more direct and probing. After all, you are looking at spending a long while in the building using their services and amenities. Things like:

• How many buildings have you closed in the last year / two years?
• What is the square footage of this floor and how many desks does it hold?
• How many toilets on the floor / how many total toilets VS total desks?
• How many weeks out of the last year have lifts / toilets been broken?
• What is the cleaning / maintenance schedule for the buildings? How many staff look after it?
• On what basis do you run the space? Do you own it? Do you lease it from a landlord? Do you manage it on behalf of the landlord?
• How long remains on the existing lease / management agreement term?
• Can I speak with existing occupiers of the building about their impressions / experience?

A large part of overcoming the cons of coworking space lies beyond the aesthetic and service-led. The practical, operational and contractual aspects of their business are sometimes just as important – as a potential occupier, you should take an active interest to eliminate potential surprises.