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2019 Profitability of Coworking Spaces

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90% of coworking spaces generate a profit if they meet at least four conditions: Read more at http://bit.ly/2019PROFIT

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2019 Profitability of Coworking Spaces

  1. 1. 2019 PROFITABILITY OF COWORKING SPACES SELECTED VISUALS FROM THE FINAL 2019 GLOBAL COWORKING SURVEY RESULTS GLOBAL COWORKING SURVEY THE CONDUCTION OF THE SURVEY WAS SUPPORTED BY READ MORE AT BIT.LY/2019PROFIT
  2. 2. TABLE OF CONTENTS REVENUE STREAMS & EXPENSES OF COWORKING SPACES COMPARISON OF PROFITABILITY OF ALL COWORKING SPACES AGES OF COWORKING SPACES AT BREAK-EVEN POINT COMPARISON OF PROFIT MARGINS OF PROFITABLE COWORKING SPACES BACKGROUND OF THE 2019 GLOBAL COWORKING SURVEY ............................................... 3 ....................................... 6 ...................................................... 16 ......... 18 ............................................ 22 MORE STATISTICS ARE AVAILABLE AT COWORKINGSTATISTICS.COM
  3. 3. REVENUE STREAMS OF COWORKING SPACES BY YEAR OF SURVEY 2019 GLOBAL COWORKING SURVEY A DECREASED PERCENTAGE DOES NOT INDICATE A DECREASE IN ABSOLUTE REVENUE; RATHER, IT INDICATES A DECREASE RELATIVE TO OTHER TYPES OF REVENUE. 3 2019 2018 2017 2016 2%2%2%2% 1%1%2%1% 1%2% 2%2% 1%1% 2%1% 2%1% 1%1% 3%2% 4% 3% 8%8% 8%7% 9%10% 10% 11% 17%18% 27%30% 16%18% 10%11% 40%36%32%31% RENTING DESKS COMBINED MEMBERSHIP PLANS RENTING PRIVATE OFFICES RENTING MEETING SPACES RENTING EVENT & CLASS SPACES VIRTUAL OFFICE SERVICES SPONSORSHIPS SALE OF FOOD & DRINKS SALE OF TICKETS TO INTERNAL EVENTS PUBLIC SUPPORT OTHER BASED ON THE ARITHMETIC MEAN WITHOUTN.A.
  4. 4. 4 WITHOUTN.A. RESPONSESFROMCOWORKINGSPACEFOUNDERS.OWNERSOR(EMPLOYED)OPERATORS. REVENUE STREAMS COMPARED BY PROFITABILITY: 2019 OVERVIEW PROFITABLE ZERO PROFIT UNPROFITABLE 2%2%2% 1% 2% 0% 4%1% 1% 1%2% 1% 1%1% 1% 2%2%4% 9%7%6% 11%10%12% 27% 25% 35% 8%14% 10% 34%33% 27% RENTING DESKS COMBINED MEMBERSHIP PLANS RENTING PRIVATE OFFICES RENTING MEETING SPACES RENTING EVENT & CLASS SPACES VIRTUAL OFFICE SERVICES SPONSORSHIPS SALE OF FOOD & DRINKS SALE OF TICKETS TO INTERNAL EVENTS PUBLIC SUPPORT OTHER 2019 GLOBAL COWORKING SURVEYBASED ON THE ARITHMETIC MEAN ZERO LOSS
  5. 5. EXPENSES OF COWORKING SPACES BY YEAR OF SURVEY A DECREASED PERCENTAGE DOES NOT INDICATE A DECREASE IN ABSOLUTE EXPENSES; RATHER, IT INDICATES A DECREASE RELATIVE TO OTHER TYPES OF EXPENSES. 5 2019 2018 2017 2016 2 %2 %2 %3 % 5 %5 %5 %5 % 6 %6 %5 %6 % 4 % 5 %4 % 5 % 5 %5 %5 % 6 % 7 %6 %7 %6 % 13 % 16 %17 % 17 % 15 % 15 %17 %14 % 43 %40 %38 %37 % RENT OF LOCATION OPERATING COSTS WAGES FOR STAFF MAINTENANCE WAGES FOR OWNERS EXTERNAL MARKETING EQUIPMENT FOOD & DRINKS OTHER* 2019 GLOBAL COWORKING SURVEY PLEASE NOTE: THIS CHART SHOWS THE RELATIVE PERCENTAGE OF PARTICULAR TYPES OF EXPENSES COMPARED TO OTHER TYPES WITHIN THE SAME (GROUP OF) COWORKING SPACES. IT DOESN'T NECESSARILY INFER ANY CONCLUSION ABOUT THE ABSOLUTE EXPENSES. THE SHARE OF EXPENSES FOR RENT HAS SHRUNK COMPARED TO THE PREVIOUS YEARS. THIS IS DUE TO A HIGHER SHARE OF COWORKING SPACES THAT EITHER OWN THEIR LOCATION OR CLOSED A MANAGEMENT CONTRACT WITH LANDLORDS. IN ADDITION, THE SHARE OF BIGGER COWORKING SPACES HAS INCREASED OVER THE YEARS, AND THOSE COWORKING SPACES PAY RELATIVELY MORE FOR STAFF. BASED ON THE ARITHMETIC MEAN
  6. 6. PLEASE KEEP IN MIND... THE FOLLOWING CHARTS DEPICT THE PROFITABILITY OF COWORKING SPACES WITHIN THE PAST TWELVE MONTHS RELATIVE TO PARTICULAR CHARACTERISTICS OF A COWORKING SPACE. MANY OF THESE CHARTS ILLUSTRATE THE STRENGTH OF A (LINEAR) CORRELATION BETWEEN A CHARACTERISTIC & PROFITABILITY; THERE ARE ALSO NONLINEAR CORRELATIONS THAT CAN BE DETECTED. HOWEVER, IT IS IMPORTANT TO UNDERSTAND THAT THE CHARACTERISTIC DID NOT NECESSARILY CAUSE THE DIFFERENCE! THERE IS USUALLY NO SINGLE CHARACTERISTIC THAT AFFECTS PROFITABILITY OVERALL (PERHAPS WITH THE EXCEPTION OF NUMBER OF MEMBERS); RATHER, A COMBINATION IS REQUIRED FOR SUCH AN EFFECT, AND NOT ALL CAN BE EXAMINED IN A QUANTITATIVE SURVEY. SOME CHARACTERISTICS ARE AFFECTED BY A BROADER BACKGROUND THAT IS NOT DIRECTLY RELATED TO, BUT IS REFLECTED IN THE BUSINESS OF RUNNING A COWORKING SPACE. ALL RESULTS ARE ROUNDED. HENCE, A SUM OF VALUES WITHIN A GROUP IS SOMETIMES LOWER OR HIGHER THAN 100%. PAGE 62019 GLOBAL COWORKING SURVEY
  7. 7. 7 2500 % 5000 % 7500 % 10000 % 2012 2013 2014 2016 2017 2018 2019 26%25%26%23% 33%36%38% 32%33%35%41% 34%32%23% 43%42%40%36%33%32%39% GENERAL DEVELOPMENT OF PROFITABILITY BY YEAR OF SURVEY 2500 % 5000 % 7500 % 10000 % 2012 2013 2014 2016 2017 2018 2019 26%29%30%34%40%51%51% SHARE OF COWORKING SPACES THAT ARE ≤ 1 YEAR OLD PROFITABLE ZERO LOSS, ZERO PROFIT UNPROFITABLE 2019 GLOBAL COWORKING SURVEY
  8. 8. 2500 % 5000 % 7500 % 10000 % ≤ 6 7 - 12 13 - 24 25 - 36 37 - 48 49 - 60 61 - 84 > 84 10% 19%19%17%24%32%33%37% 19% 28%25% 39%28% 29% 41%40% 71% 53%56% 44%48% 39% 27%23% SHARE OF COWORKING SPACES BY AGE 750 % 1500 % 2250 % 3000 % ≥ 6 7 - 12 13 - 24 25 - 36 37 - 48 49 - 60 61 - 84 > 84 9%8%7%14%13% 23% 10%16% MONTHS MONTHS PROFITABLE ZERO LOSS, ZERO PROFIT UNPROFITABLE 8 WITHOUTN.A. BY AGE OF COWORKING SPACE 2019 GLOBAL COWORKING SURVEY PROFITABILITYOFCOWORKINGSPACES
  9. 9. BY NUMBER OF MEMBERS PER COWORKING SPACE 2500 % 5000 % 7500 % 10000 % < 25 25-49 50-99 100-199 200 & MORE MEMBERS 9%10% 24%27% 41% 15% 36% 29% 40% 35% 76% 54%47% 33% 24% SHARE OF COWORKING SPACES BY NO. OF MEMBERS 750 % 1500 % 2250 % 3000 % < 25 25-49 50-99 100-199 200 & MORE MEMBERS 18%15%22%18% 28% WITHOUTN.A. 9PROFITABLE ZERO LOSS, ZERO PROFIT UNPROFITABLE 2019 GLOBAL COWORKING SURVEY PROFITABILITYOFCOWORKINGSPACES
  10. 10. 2500 % 5000 % 7500 % 10000 % FOR PROFIT NON-PROFIT 27%26% 46% 29% 27% 45% BY BUSINESS MODEL SHARE OF COWORKING SPACES BY BUSINESS MODEL 2500 % 5000 % 7500 % 10000 % FOR PROFIT NON-PROFIT OTHER OR N.A. 6%12% 83% PROFITABLE ZERO LOSS, ZERO PROFIT UNPROFITABLE 10 WITHOUTN.A. 2019 GLOBAL COWORKING SURVEY PROFITABILITYOFCOWORKINGSPACES
  11. 11. PROFITABILITYOFCOWORKINGSPACES 2500 % 5000 % 7500 % 10000 % YES NO 30%24% 42% 27% 28% 49% BY REQUIREMENT OF INDEPENDENT COWORKING SPACE PROFITABILITY* SHARE OF COWORKING SPACES WITH THAT REQUIREMENT 2500 % 5000 % 7500 % 10000 % YES NO DON'T KNOW 8%29% 64% PROFITABLE ZERO LOSS, ZERO PROFIT UNPROFITABLE 11 WITHOUTN.A. 2019 GLOBAL COWORKING SURVEY WITHOUTN.A. *IN ORDER TO RUN THE ENTIRE OR PARENT BUSINESS SUCCESSFULLY
  12. 12. EXPANSION PLANS FOR 2019 BY PROFITABILITY STATUS PROFITABLE ZERO LOSS, ZERO PROFIT UNPROFITABLE 12 WITHOUTN.A. 2019 GLOBAL COWORKING SURVEY EXPANDING INSIDE THE CURRENT SPACE MOVING TO A LARGER LOCATION OPENING (AN)OTHER NEW LOCATION(S) 0 12.5 25 37.5 50 20% 6% 28% 32% 8% 37% 46% 11% 28% YES, WE WILL EXPAND 0 20 40 60 80 48% 65% 72% OF PROFITABLE COWORKING SPACES OF UNPROFITABLE COWORKING SPACES OF COWORKING SPACES WITHOUT PROFIT OR LOSS OF PROFITABLE COWORKING SPACES OF PROFITABLE COWORKING SPACES OF PROFITABLE COWORKING SPACES OF UNPROFITABLE COWORKING SPACES OF UNPROFITABLE COWORKING SPACES OF COWORKING SPACES WITHOUT PROFIT OR LOSS OF COWORKING SPACES WITHOUT PROFIT OR LOSS OF UNPROFITABLE COWORKING SPACES OF COWORKING SPACES WITHOUT PROFIT OR LOSS MULTIPLE RESPONSES WERE ALLOWED: PROFITABILITYOFCOWORKINGSPACES
  13. 13. INCOME* OF FOUNDERS, OWNER OR SELF-EMPLOYED OPERATORS BY PROFITABILITY 2500 % 5000 % 7500 % 10000 % PROFITABLE ZERO PROFIT - ZERO LOSS UNPROFITABLE 21%23% 8% 58% 40% 51% 20% 37%42% ABOVE AVERAGE AVERAGE BELOW AVERAGE 13 2500 % 5000 % 7500 % 10000 % PROFITABLE ZERO PROFIT - ZERO LOSS UNPROFITABLE 19%29%23% 65%46%62% 16%25%15% INCOME* OF EMPLOYED OPERATORS OR SPACE MANAGERS BY PROFITABILITY 2019 GLOBAL COWORKING SURVEY INCOME* OF PEOPLE WHO WORK FOR COWORKING SPACES *COMPAREDTOTHECOSTOFLIVINGINTHEIRRESPECTIVECOUNTRIES. PLEASENOTE:THELARGERTHECOWORKINGSPACE,THEMORELIKELYTHE QUESTIONNAIREISRESPONDEDBYEMPLOYEESOFACOWORKINGSPACE.
  14. 14. INCOME* OF PEOPLE WHO WORK FOR COWORKING SPACES INCOME* OF FOUNDERS, OWNERS OR SELF-EMPLOYED OPERATORS BY NUMBER OF MEMBERS 2500 % 5000 % 7500 % 10000 % UP TO 49 MEMBERS 50-99 100-199 200 & MORE MEMBERS 6%8%13%19% 46%47% 57%48% 48%45%31%33% ABOVE AVERAGE AVERAGE BELOW AVERAGE 14 *COMPAREDTOTHECOSTOFLIVINGINTHEIRRESPECTIVECOUNTRIES. PLEASENOTE:THELARGERTHECOWORKINGSPACE,THEMORELIKELYTHE QUESTIONNAIREISRESPONDEDBYEMPLOYEESOFACOWORKINGSPACE. 2500 % 5000 % 7500 % 10000 % UP TO 49 MEMBERS 50-99 100-199 200 & MORE MEMBERS 11% 30%25%24% 52% 57%65%53% 37% 14%10%22% INCOME* OF EMPLOYED OPERATORS OR SPACE MANAGERS BY NUMBER OF MEMBERS 2019 GLOBAL COWORKING SURVEY
  15. 15. INCOME* OF OWNERS OF COWORKING SPACES** FEMALE 2500 % 5000 % 7500 % 10000 % < 50 MEMBERS ≥ 50 MEMBERS 14%22% 57%53% 29%26% ABOVE AVERAGE AVERAGE BELOW AVERAGE 2500 % 5000 % 7500 % 10000 % < 50 MEMBERS ≥ 50 MEMBERS 8% 16% 48%46% 44%38% MALE BY NUMBER OF MEMBERS 2500 % 5000 % 7500 % 10000 % 18% 55% 28% 2500 % 5000 % 7500 % 10000 % 13% 46% 41% BY NUMBER OF MEMBERS 15 WITHOUTN.A. * COMPARED TO THE COST OF LIVING IN THEIR RESPECTIVE COUNTRIES ** FOUNDERS, OWNERS OR SELF-EMPLOYED OPERATORS 2019 GLOBAL COWORKING SURVEY
  16. 16. 2019 ALL COWORKING SPACES 2018 ALL COWORKING SPACES 17%13% 20% 19% 24% 29% 38%40% UP TO 6 MONTHS 7-12 MONTHS 13-24 MONTHS OLDER THAN 24 MONTHS AGES OF COWORKING SPACES AT BREAK-EVEN POINT ARITHMETIC MEAN 5% TRIMMED MEAN 13.5 MONTHS 12.2 MONTHS 16 MEDIAN10 MONTHS 2019 GLOBAL COWORKING SURVEY A COWORKING SPACE BREAKS EVEN WHEN THEY DON'T MAKE ANY LOSSES FOR THE FIRST TIME. THUS, UNPROFITABLE COWORKING SPACES HAVE NOT BEEN CONSIDERED. WHEN WE FIRST INTRODUCED THIS QUESTION IN THE 2017 SURVEY WE ACCIDENTALLY ONLY CONSIDERED COWORKING SPACES THAT HAD MADE ZERO LOSSES AND ZERO PROFIT DUE TO A NON- WORKING FILTER, FOR THIS REASON, THE 2017 RESULTS ARE NOT SHOWN. 14.9 MONTHS 13.3 MONTHS 11 MONTHS
  17. 17. PAGE 172019 GLOBAL COWORKING SURVEY PLEASE NOTE: THE FOLLOWING CHARTS ONLY INCLUDE COWORKING SPACES THAT HAD BEEN PROFITABLE WITHIN THE PAST TWELVE MONTHS. 2500 % 5000 % 7500 % 10000 % 26% 32% 43% PROFITABLE ZERO UNPROFITABLE PLEASE ALSO KEEP IN MIND: THE PROFIT MARGIN IS A RELATIVE VALUE AND DOESN'T SAY ANYTHING ABOUT THE PROFIT IN ABSOLUTE NUMBER!!! FURTHERMORE, THERE IS USUALLY NO ONE CHARACTERISTIC THAT CAN AFFECT THE PROFIT MARGIN OVERALL; RATHER, A COMBINATION IS REQUIRED FOR SUCH AN EFFECT, AND NOT ALL CAN BE COLLECTED IN A QUANTITATIVE SURVEY. SOME CHARACTERISTICS ARE AFFECTED BY A BROADER BACKGROUND THAT IS NOT DIRECTLY RELATED TO, BUT IS REFLECTED IN THE BUSINESS OF RUNNING A COWORKING SPACE. COMPARISON OF ANNUAL PROFIT MARGINS OF PROFITABLE COWORKING SPACES
  18. 18. ANNUAL PROFIT MARGINS OF PROFITABLE COWORKING SPACES 18 2019 GLOBAL COWORKING SURVEY GENERAL RESULT 625 % 1250 % 1875 % 2500 % 17.4% ALL PROFITABLE COWORKING
 SPACES 2019 MEDIANMEAN 15%19.4% 5% TRIMMED MEAN PROFIT MARGIN (5% TRIMMED MEAN) RESPONSESWITHOUTN.A. ANDEXCLUDINGCOWORKINGSPACESWITHAMARGINOF≤0%&>100%
  19. 19. ANNUAL PROFIT MARGINS OF PROFITABLE COWORKING SPACES 19 2019 GLOBAL COWORKING SURVEY 625 % 1250 % 1875 % 2500 % ≤ 12 MONTHS 13 - 36 MONTHS 37 - 60 MONTHS > 60 MONTHS 14% 20%19%18% DISTRIBUTION OF COWORKING SPACES WITH A PROFIT MARGIN ABOVE 0% 1250 % 2500 % 3750 % 5000 % ≤ 12 MONTHS 13 - 36 MONTHS 37 - 60 MONTHS > 60 MONTHS 29%23%34% 14% BY AGE OF COWORKING SPACE MEAN 18% - MEDIAN: 18% MEAN: 22% - MEDIAN: 20% MEAN: 21% - MEDIAN: 20% MEAN: 15% - MEDIAN: 10% PROFIT MARGIN (5% TRIMMED MEAN) RESPONSESWITHOUTN.A. ANDEXCLUDINGCOWORKINGSPACESWITHAMARGINOF≤0%&>100%
  20. 20. 20 2019 GLOBAL COWORKING SURVEY 625 % 1250 % 1875 % 2500 % < 50 MEMBERS 50 - 99 MEMBERS 100 - 199 MEMBERS ≥ 200 MEMBERS 17%16%16% 22% DISTRIBUTION OF COWORKING SPACES WITH A PROFIT MARGIN ABOVE 0% 1250 % 2500 % 3750 % 5000 % < 50 MEMBERS 50 - 99 MEMBERS 100 - 199 MEMBERS ≥ 200 MEMBERS 26%18%25%32% BY NUMBER OF MEMBERS MEAN 25% - MEDIAN: 20% MEAN: 16% - MEDIAN: 10% MEAN: 17% - MEDIAN: 14% MEAN: 17% - MEDIAN: 15% PROFIT MARGIN (5% TRIMMED MEAN) ANNUAL PROFIT MARGINS OF PROFITABLE COWORKING SPACES RESPONSESWITHOUTN.A. ANDEXCLUDINGCOWORKINGSPACESWITHAMARGINOF≤0%&>100%
  21. 21. 21 2019 GLOBAL COWORKING SURVEY 625 % 1250 % 1875 % 2500 % < 500 SQ M 500 - < 1000 SQ M 1000 - < 2000 SQ M ≥ 2000 SQ M 15%17% 14% 20% DISTRIBUTION OF COWORKING SPACES WITH A PROFIT MARGIN ABOVE 0% 1250 % 2500 % 3750 % 5000 % < 500 SQ M 500 - < 1000 SQ M 1000 - < 2000 SQ M ≥ 2000 SQ M 17%20%14% 49% BY SIZE OF A COWORKING SPACE IN SQUARE METERS (1 SQ M = 10.7639 SQ FT) MEAN 22% - MEDIAN: 20% MEAN: 15% - MEDIAN: 13% MEAN: 19% - MEDIAN: 15% MEAN: 16% - MEDIAN: 15% PROFIT MARGIN (5% TRIMMED MEAN) ANNUAL PROFIT MARGINS OF PROFITABLE COWORKING SPACES RESPONSESWITHOUTN.A. ANDEXCLUDINGCOWORKINGSPACESWITHAMARGINOF≤0%&>100%
  22. 22. 2019 GLOBAL COWORKING SURVEY 22 THANKS TO OUR MAIN SUPPORTERS: ESSENSYS.TECH "Essensys is a simple, easy to use software platform that helps you manage your workspace from lead to cash and everything in between. Workspaces can attract and retain customers, grow additional income streams and gain business insight to make quicker decisions. We focus on ensuring that your workspace can deliver the best customer experience.” YARDI.COM The all-new Yardi KUBE is the most comprehensive workspace management platform. Drive top line revenue, reduce costs and efficiently grow your Coworking space while delivering a phenomenal member experience. THE MAIN SUPPORTERS LISTED ABOVE HELPED TO DISTRIBUTE THE SURVEY AND FINANCIALLY SUPPORTED THE OVERALL PROMOTION OF THE SURVEY. OUR DISTRIBUTION PARTNERS & REGIONAL PARTNERS HELPED TO DISTRIBUTE THE SURVEY ON A GLOBAL OR REGIONAL SCALE. OFFICIAL SUPPORTERS HELPED TO DISTRIBUTE THE SURVEY WITHIN THEIR OWN COWORKING SPACE NETWORKS. "Nexudus is a leading white-label platform to help coworking space operators with their day-to-day tasks. Today, hundreds of spaces around the world use Nexudus to spend less time typing and chasing invoices, keeping their communities engaged and up- to-date, or controlling who is in and out of the space and how it is used. Nexudus is made for and by their active community of users." NEXUDUS.COM
  23. 23. THANKS TO OUR DISTRIBUTION PARTNERS: THANKS TO OUR REGIONAL PARTNERS & OFFICIAL SUPPORTERS:
  24. 24. MORE STATISTICS WOULD YOU LIKE TO SUPPORT THE GLOBAL COWORKING SURVEY AND RECEIVE MORE STATISTICS? YES, GIMME MORE STATS! PAGE 24GLOBAL COWORKING SURVEY PAGE 24
  25. 25. A COLLABORATIVE PROJECT BY RECEIVING TOO MANY EMAILS FROM STUDENTS ABOUT COWORKING RESEARCH? ADD COWORKINGLIBRARY.COM TO YOUR FAQ PAGE.
  26. 26. (ARITHMETIC) MEAN, 5% TRIMMED MEAN, MEDIAN… WHY ARE THERE SO MANY DIFFERENT AVERAGE VALUES? ISN’T THERE A SIMPLER WAY? SURE THERE IS! BUT REDUCING A SKEWED DEVELOPMENT TO A SINGLE VALUE WOULD NOT PROVIDE AN ACCURATE REFLECTION OF THE COWORKING SPACE LANDSCAPE, WHICH HAS BECOME MORE DIVERSE IN RECENT YEARS. IN FACT, THE VALUES PRESENTED HEREIN ARE THREE OF DOZENS OF STATISTICAL MEASURES; SO, WE ARE STILL KEEPING IT QUITE SIMPLE. THE (ARITHMETIC) MEAN IS THE MOST COMMON AVERAGE TO REPORT CENTRAL TENDENCIES. HOWEVER, IT IS NOT ROBUST IF IT IS INFLUENCED BY OUTLIERS (EXTREME CASES, WHICH ARE MUCH LARGER OR SMALLER THAN MOST OF THE OTHERS). FOR EXAMPLE, THINK OF AN UNEQUAL DISTRIBUTION OF INCOME, WHERE 10% OF PEOPLE IN YOUR COUNTRY “EARN” 90% OF ALL INCOME. IF YOU TOOK THE MEAN OF THAT INCOME, THE MAJORITY OF PEOPLE WOULD SEE A HUGE GAP BETWEEN THE MEAN VALUE AND THE AMOUNT IN THEIR BANK ACCOUNTS. THUS, THESE NUMBERS UNFORTUNATELY WOULD NOT REFLECT THEIR REALITY. THE COWORKING MARKET IS, OF COURSE, NOT THAT UNEQUAL. HOWEVER, THERE ARE COWORKING SPACES (CHAINS) THAT CAN BE IDENTIFIED AS OUTLIERS AND ARE MUCH BIGGER THAN THE MAJORITY OF OTHER COWORKING SPACES. THEREFORE WE ONLY HIGHLIGHT THE (ARITHMETIC) MEAN WHEN PRESENTING RESTRICTED SCALES, SUCH AS AGE, BECAUSE LIFE IS STILL LIMITED, OR IN STAR RATINGS (1-10). FOR OPEN, UNLIMITED SCALES WE PREFER THE 5% TRIMMED MEAN. IT CUTS THE HIGHEST AND LOWEST 5% OF CASES, AND REFLECTS THE AVERAGE REALITY MUCH BETTER THAN THE ARITHMETIC MEAN IN THOSE CASES - WE CAN ALSO AVOID TYPOS IN THE CASE THAT A PARTICIPANT ACCIDENTALLY ENTERS TOO MANY FIGURES. THE MEDIAN SEPARATES THE UPPER HALF FROM THE LOWER HALF (IT IS SIMPLY THE VALUE IN THE MIDDLE). IT IS IMPORTANT TO NOTE THAT MOST STATISTICS PRESENTED HEREIN ARE GROUPED, AND PRESENT THEIR SHARE TO REFLECT THE WHOLE REALITY. HOW TO READ THE STATISTICS? PAGE 262019 GLOBAL COWORKING SURVEY PAGE 26
  27. 27. HOW ARE THE (ARITHMETIC) MEAN, 5% TRIMMED MEAN, AND MEDIAN CALCULATED? THE (ARITHMETIC) MEAN IS THE SUM OF A COLLECTION OF NUMBERS DIVIDED BY THE NUMBER OF VALUES IN THE COLLECTION. CONFUSED? IMAGINE YOU HAVE TEN NUMBERS… NOW ADD THEM UP, AND THEN DIVIDE BY TEN: 1 + 2 + 3 + 4 + 4 + 5 + 5 + 6 + 9 + 19 = 58/10 = 5.8 THE 5% TRIMMED MEAN FIRST REMOVES THE HIGHEST AND LOWEST 5% OF A COLLECTION OF NUMBERS, SUMS THE REST, AND DIVIDES THIS TOTAL BY THE NUMBER OF VALUES IN THE COLLECTION: 1 + 2 + 3 + 4 + 4 + 5 + 5 + 6 + 9 + 19 = 38/8 = 4.75 ≈ 4.8 THE MEDIAN IS THE MIDDLE NUMBER OF A COLLECTION OF VALUES. IT DIVIDES THE UPPER HALF BY THE LOWER HALF. IN THIS CASE, WE HAVE AN EVEN NUMBER OF VALUES (TWO MIDDLE NUMBERS), WHICH ARE SUMED AND THEN DIVIDED. THIS GIVES A FULLY TRUNCATED OR TRIMMED MEAN: 1 + 2 + 3 + 4 + 4 + 5 + 5 + 6 + 9 + 19 = (4 + 5)/2 = 4.5 SIDE NOTE: THE GREATER THE DIFFERENCE AMONG THE VALUES, THE GREATER THE COLLECTION OF UNEQUALLY DISTRIBUTED VALUES. IF YOU’D LIKE TO CONSIDER ONLY A SINGLE NUMBER, GO WITH THE 5% TRIMMED MEAN. HOWEVER, IT'S BETTER TO USE THE SHARE OF GROUPS PRESENTED IN THE CHARTS. HOW TO READ THE STATISTICS? PAGE 272019 GLOBAL COWORKING SURVEY PAGE 27
  28. 28. PAGE 282019 GLOBAL COWORKING SURVEY PAGE 28 WHAT DOES 'NUMBER OF INHABITANTS LOCAL TO A COWORKING SPACE' EXACTLY MEAN? PARTICIPANTS HAVE RESPONDED TO THE QUESTION "HOW MANY PEOPLE LIVE IN THE CITY, TOWN OR VILLAGE WHERE YOUR COWORKING SPACE IS LOCATED?" IT WOULD BE QUITE LONG TO WRITE 'NUMBER OF INHABITANTS OF THE CITY, TOWN OR VILLAGE WHERE A COWORKING SPACE IS LOCATED'. WHY ARE '0' OR 'N.A.' ENTRIES SOMETIMES EXCLUDED? THIS IS A FILTER METHOD TO EXCLUDE ENTRIES THAT EITHER DO NOT MAKE SENSE, SUCH AS COWORKING SPACES WITH A SIZE OF ZERO SQUARE METERS. OR WE EXCLUDE ENTRIES THAT THE SURVEY SYSTEM MEANT TO CATEGORIZE AS "NOT AVAILABLE" = "-99", BUT USED THE CODE "0" INSTEAD. THIS ONLY MINIMALLY IMPACTS THE RESULTS. FOR THIS REASON, SOME RESULTS LOOK VERY SLIGHTLY DIFFERENT COMPARED TO RESULTS IN THE PAST. THE FILTER METHOD IS MENTIONED ON EACH SLIDE. ABOUT PARTICULAR CATEGORIES
  29. 29. WHAT DOES "COWORKING SPACES WHICH ARE REQUIRED TO RUN AN INDEPENDENTLY PROFITABLE COWORKING SPACE BUSINESS" MEAN? MANY COWORKING SPACES ARE RAN AS SIDE-BUSINESSES. SOME ARE RAN BY SELF-EMPLOYED OPERATORS WHO STILL HAVE ANOTHER JOB. IN THESE CASES, COWORKING SPACES OFTEN DON'T NEED TO BE INDEPENDENTLY PROFITABLE, INSTEAD OPERATORS MAY PROFIT FROM A WIDER RANGE OF CLIENTS AND INCREASE THEIR INCOME IN THEIR MAIN JOB OR REDUCE THEIR EXPENSES BY RENTING DESKS. IN SOME CASES, COWORKING SPACES ARE RAN AS A PART OF A BIGGER BUSINESS MODEL, E.G. IN HOTELS, IN ORDER TO INCREASE OTHER REVENUE STREAMS OF THE HOTEL. THERE ARE NUMEROUS EXAMPLES, BUT THEY OFTEN SHARE THE COMMON FACTOR THAT SUCH COWORKING SPACES DO NOT HAVE TO BE PROFITABLE ON THEIR OWN. WE FILTER THESE COWORKING SPACES ACCORDING TO SUCH CATEGORIES IN PARTICULAR QUESTIONS. 2019 GLOBAL COWORKING SURVEY ABOUT PARTICULAR CATEGORIES
  30. 30. BACKGROUND PAGE 302019 GLOBAL COWORKING SURVEY PAGE 30 MEASURING & SEPARATING SYSTEM: WE LIKE AND RESPECT DIVERSITY, HOWEVER WE NEEDED TO MAKE THE FOLLOWING DECISIONS TO AVOID REPEATING "TRANSLATIONS" ON COUNTLESS SLIDES: • RESULTS ARE SHOWN IN THE METRIC SYSTEM IF NOT STATED OTHERWISE: E.G. 1 SQUARE METER = 10.7639 SQUARE FEET • A POINT IS USED AS A DECIMAL SEPARATOR & A COMMA FOR MARKING NUMBERS HIGHER THAN ONE THOUSAND OR MORE: E.G. 20.7 MEMBERS = 20,7 MEMBERS OR 1,899.34€ = €1.899,34 HOW IS THE GLOBAL COWORKING SURVEY FINANCED? THE GLOBAL COWORKING SURVEY IS FINANCED THROUGH TWO SOURCES. FIRSTLY, THE MAIN
 SUPPORTERS, AS SHOWN IN THE PUBLISHED MATERIAL, PROVIDE THE FINANCES, WHICH ENABLE US TO PROMOTE THE SURVEY. THEY ALSO ALLOW A BASIC ANALYSIS WHICH IS AVAILABLE FOR FREE. WE ARE VERY GRATEFUL TO THEM! THEY DO NOT INFLUENCE THE ANALYSIS OR THE RESULTS. A MUCH MORE DETAILED ANALYSIS TAKES SIGNIFICANTLY MORE TIME, BUT CATERS TO A SMALLER AUDIENCE. SOUNDS LIKE A BAD CORRELATION, RIGHT? FOR THAT REASON, THE SURVEY ANALYSIS IS ALSO SUPPORTED BY THE PEOPLE WHO PURCHASE THE REPORTS. BUT CRUCIAL FINDINGS ARE ALSO PUBLISHED IN ARTICLES, FREE OF COST. THANKS TO EVERYONE WHO SUPPORTED THE GLOBAL COWORKING SURVEY BY PURCHASING THESE REPORTS, BY DISTRIBUTING THE SURVEY AND ESPECIALLY BY TAKING THE SURVEY!
  31. 31. BACKGROUND OF THE 2019 GLOBAL COWORKING SURVEY THE 2019 GLOBAL COWORKING SURVEY WAS ACTIVE ONLINE FROM JANUARY 24 - MARCH 18, 2019. THE FINAL RESULTS ARE ANALYZED USING IBM SPSS, AND ARE CHECKED USING QUALITY STANDARDS TO REMOVE BOTS OR FAKE PARTICIPANTS. THOSE PEOPLE ARE NOT CONSIDERED IN THE ANALYSIS NOR IN THE COUNTING OF PARTICIPANTS. PARTICIPANTS: 2019: 2668 ❖ 2018: 1980 ❖ 2017: 1876 ❖ 2016: 1679 ❖ 2014: 1270 ❖ 2013: 1206 ❖ 2012: 913 BY GROUPS IN 2019: COWORKING SPACES (OWNERS, FOUNDERS, OPERATORS OR STAFF MEMBERS): N=1240 MEMBERS: N=879 - PLANNED OR FUTURE COWORKING SPACES: N=137 REMAINING PARTICIPANTS ARE PRIMARILY FORMER COWORKING SPACE MEMBERS OR PEOPLE WHO HAVE NEVER WORKED IN A COWORKING SPACE. THE GLOBAL RESULTS OF THIS REPORT ARE BASED ON THE PARTICIPANTS WHO REPRESENT COWORKING SPACES (N=1240). © 2019 DESKMAG - CARSTEN FOERTSCH IT IS NOT ALLOWED TO SELL THIS MATERIAL OR ANY CONTENT OF THE SLIDES. INTERESTED IN REGULAR UPDATES RELATING TO THE GLOBAL COWORKING SURVEY? JOIN OUR NEWSLETTER! 2019 PROFITABILITY OF COWORKING SPACES SELECTED VISUALS FROM THE FINAL 2019 GLOBAL COWORKING SURVEY RESULTS MORE STATISTICS ARE AVAILABLE ON COWORKINGSTATISTICS.COM

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