Trends in the Commercial Coworking Market in Los Angeles
Shared working spaces were already growing in popularity before Covid came to town. Still, the pandemic conditions catapulted the need for a workplace revolution like nothing before it.
With remote working trends outliving the necessity of lockdowns, flexible workspaces are the future and fast becoming the norm.
Los Angeles is home to a wide variety of industries, and with its fantastic weather and thriving freelance population, it's a prime hub for a booming coworking market.
Los Angeles diverse economy
LA is the center of the universe as far as television and motion picture production are concerned. The headquarters of Disney, Warner Bros., Dreamworks, and Universal Studios are all based in San Fernando Valley. In addition, the demand for flexible office space in Silicone Beach is driven by more than 500 tech companies, and Aerospace, medicine, and military operations are centered around South Bay.
These business districts are distinct and of considerable distance to one another. This creates an essential need for coworking options in locations that can cater to the complex demands of all workers in each sector, no matter their location.
Los Angeles’ booming freelancer population fuels need for coworking space
According to Fiverr's Freelance Economic Impact Report, approximately 431,000 freelancers are based in Los Angeles, second only to New York, with an estimated 560,000.
With such a diverse industry base and so many freelancers in operation, it's no wonder that Los Angeles is home to a wide range of coworking options to cater to the needs of so many specialties. LA currently runs approximately 6.2 million square feet of flexible coworking space, again second only to Manhattan for the county. However, freelancers still account for a large proportion of coworking space users (41%). That said, corporations are now showing increasing interest in utilizing flexible workspace, closing the gap with freelancers at 36% of current users.
Continued innovation to enhance workspace experiences
The demand for flexible coworking spaces will persist as more Los Angeles-based businesses consider how their workforce will operate into the future.
Fueled significantly by the pandemic, there is a new standard of expectation regarding health, safety, and wellness, and office spaces are having to adapt to thrive. Coworking spaces are no longer simply an alternative location to work; they are fast becoming environments that offer workplace experiences that bolster productivity, encourage collaboration and prioritize wellness and safety.
Coworking spaces in Los Angeles and beyond are keenly focusing on such innovations. Striking designs, premium quality amenities and services, and ultra-modern smart building technologies are being incorporated into coworking spaces in a bid to stand out as a superior choice. Ambitious entrepreneurs flock to spaces that are shaped around convenience and modern design to best meet their needs. As much as coworking spaces focus on connectivity, networking and collaboration, they must also provide an environment conducive to heightened productivity.
According to a new report published by The Business Research Co., the flexible coworking market is anticipated to exceed $13bn by 2025. Factors expected to shape the sector include increased focus on tailored customer solutions, sustainability, and cutting-edge technologies that promote safety, wellness, and productivity.
Trends to expect in the coworking space sector in 2022
Artificial Intelligence and automation
The World Economic Forum predicts that Artificial Intelligence (AI) and automation will lead to 97 million new jobs by the year 2025. Moreover, systems that rely on AI are pivotal to successful collaboration between remote working colleagues and with clients.
Hybrid working spaces also increase the need for software and apps that assist with the logistical challenges of managing flexible working arrangements. With more and more freelancers and corporate employees transitioning to coworking environments, the effective scheduling of shared space, technology, and resources will require increasingly more efficient management systems.
Perks that focus on health and connection
Coworking spaces will also continue to increase the perks they offer to entice users to choose their hub space. Office-based perks that once focused more on pizza Fridays and pool tables now center more around health and lifestyle needs as well as connection, including such amenities as babysitting, meditation, massage, and rooftop gardens.
With more attention paid to health and safety than ever before, coworking office spaces are adopting touchless access control systems rapidly. These cloud-based, smart security systems allow for remote management, contactless entry, and heightened security posturing.
Niching flexible workspaces
Specialized coworking niche office spaces are also an up-and-coming trend for the sector. By gearing coworking spaces towards one particular industry, such as legal or medical professionals or new mothers, these spaces enable individuals with shared interests and specialties to come together, network, and collaborate.
Los Angeles coworking space set to thrive and evolve.
With such a diverse and creative range of industries and a significant concentration of students and freelancers, Los Angeles' coworking space sector will continue to flourish and evolve in the coming years.
These flexible working spaces will see rapid technological advancements, as well as a keen focus on improving the quality of the amenities on offer to cater to the evolving needs of modern workers.