Coworking Blue Paper

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Cowork ing

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Coworking: Let the ideas col l ide

What happens when you bring a lot of bright people working on a wide variety

of totally unrelated projects together in one space? Wait before you answer …

there’s more. Throw in a game room, movie nights and some other social events—

anything you can think of to encourage people to mix and mingle. And what you

get is an explosion of innovation and creativity, if coworkers are to be believed.

Coworking spaces bring together people, self-employed and otherwise, in an

office environment where they share not only equipment but also, and more

importantly, ideas and knowledge. The Coworking Manifesto believes that

this new working model will lead to an economy built on community and

collaboration, rather than on the “silos of the past.”

And the idea is catching on. The coworking movement grew by over 400 percent

in the last two years globally.1 And Millennials, those born between the early

‘80s and early 2000s, are really taking to it. This is important to note, because

Millennials make up both our current and future customers and employees. They

will account for around half of the U.S. workforce by 2020.2 So, understanding

how they think and feel about things can only help our businesses. The Seattle

Times’ Thanh Tan sums Millennials up nicely:3 “Any business looking to stay on

the cutting edge should embrace the evolving work habits of these twenty- and

thirty-something entrepreneurs. They’re not unfocused dreamers. They hustle.”

If that’s not enough of a reason to be interested in coworking, how about

this? By 2020, around 40 percent of the U.S. workforce is expected to work

freelance.4 The times they are a changin’, and working with people and

teams based in coworking spaces may very well be a major part of that

change for many companies.

This Blue Paper® will look at the pros, cons and trends of coworking. It will

provide insight into both its facility sharing and community building aspects, as

well as ensure those considering coworking have the resources on hand to make

educated decisions about whether or not they are a good fit.

Let’s start at the very beginning.

1 Ursrey, Lawton. “What Coworking Can Really Do For You.” Forbes.com. Forbes, 25 Feb. 2014. Web. 21 Nov. 2014. <http://www.forbes.com/sites/lawtonursrey/2014/02/25/what-coworking-can-really-do-for-you/>.

2 Tan, Thanh. “Co-working Spaces Feed Innovation in the Millennial Generation.” Co-working Spaces Feed Innovation in the Millennial Generation. Http://seattletimes.com/, 11 Sept. 2013. Web. 20 Nov. 2014. <http://seattletimes.com/html/editorials/2021803853_thanhtancolumncoworkingspaces12xml.html>.

3 Tan, Thanh. “Co-working Spaces Feed Innovation in the Millennial Generation.” Co-working Spaces Feed Innovation in the Millennial Generation. Http://seattletimes.com/, 11 Sept. 2013. Web. 20 Nov. 2014. <http://seattletimes.com/html/editorials/2021803853_thanhtancolumncoworkingspaces12xml.html>.

4 Giang,Vivian. “40 Percent Of Americans Will Be Freelancers By 2020.” Businessinsider.com. Business Insider, 21 Mar. 2013. Web. 21 Nov. 2014. <http://www.businessinsider.com/americans-want-to-work-for-themselves-intuit-2013-3>.


What is coworking?

Coworking is all about sharing; sharing space like kitchens and workspaces, along

with equipment, especially fast Wi-Fi. But it also involves sharing a mindset and

desire to mix with likeminded people. These likeminded folks are not colleagues

in the conventional sense—many don’t work for the same organization.

But all the same, they are interested in supporting one another, exchanging ideas

and maybe even providing a shoulder to cry on, on those bad days. At its heart,

it’s about community.5 Figure 1 shows just how important that community is.

“Casual small talk,” “enjoying others’ company,” and “sharing knowledge and

advice” are by far the most common interactions coworkers have with each other.

Figure 1: Coworking combines company with sharing knowledge and

moral support.6

5 “The Third Global Coworking Survey.” Communityjelly.files.wordpress.com/. Deskmag, 27 Jan. 2014. Web. 6 Nov. 2014. <http://communityjelly.files.wordpress.com/2012/11/3rdglobalcoworkingsurvey-121108034918-phpapp02.pdf>.



And this community typically attracts people who work from home, creative

types, independent contractors, startups and those who travel frequently and

want to work in some company.

Before coworking spaces emerged, these were the people you may have noticed

beavering away in libraries and noisy coffee shops. Or maybe they were the

people you didn’t see as they were isolated in home bedrooms and private offices.

Phoenix, Arizona Mayor Greg Stanton summed it up nicely why these people have

made the move to coworking. At the opening of a space in his city, the mayor

said: “The whole idea of coworking is to bring bright, creative people together

and let the ideas collide.”7

What wi l l you f ind there?

Coworking spaces provide a lot of what you might expect in a business space:

•Fast wireless Internet

•Long opening hours—more than half of the spaces are open 24/7

•Printers and photocopiers—although a small number of spaces are paperless

•A meeting room for private talks—along with coffee, tea and drinks

• Coworking visa—a growing number of coworking spaces allow members of

other spaces to use their facilities for free through a visa program

•Shared bathrooms and lounges

It is on the social side, however, that coworking spaces really come

into their own. There are happy hours, networking mixers, fundraisers

and all kinds of other events with a very simple aim: bringing people

together. Workantile in Ann Arbor, Michigan, for example, treats its

members to movie screenings, social lunches and chair massages.8

Ensemble in Midtown Manhattan, New York, meanwhile, throws Social

EatiaSM—a daily break with homemade treats for members, who are

encouraged to network.9 Other coworking spaces provide game rooms

to encourage people to get to know one another over—say over a

game of Call of Duty®.

7 Koerth, Kimberly. “Hive @ Central Coworking Space at Burton Barr Library Buzzes with Potential.” Downtowndevil.com. Downtown Devil, 20 Jan. 2014. Web. 4 Nov. 2014. <http://downtowndevil.com/2014/01/20/53402/hive-central-coworking-space-burton-barr-library/>.

8 Langford, Aisha. “Coworking Space: Should You Run Your Business from One?” Freshbooks.com. 2ndSite Inc., 30 Jan. 2014. Web. 10 Nov. 2014. <http://www.freshbooks.com/blog/2014/01/30/coworking-space-should-you-run-your-business-from-one/>.



Behind all of this social activity is a desire to do business in an open, transparent

environment. The Coworking Manifesto says: “We are a group of connected

individuals and small businesses creating an economy of innovation and creativity

in our communities and worldwide. We envision a new economic engine

composed of collaboration and community, in contrast to the silos and secrecy of

the 19th/20th century economy.”10

Intriguing, right? A creative environment with other professionals, freed from

conventional office environments and the option of working with as much

flexibility as you like.

So, where did the idea for coworking come from?

Coworking’s big bang

The term “coworking” was coined in 1999 by Bernard DeKoven when describing a

phenomenon he called “working together as equals.” He was referring to insights

he garnered while designing games and facilitating play and how they could

apply to work.

It really wasn’t until 2005, however, when the “Coworking Movement” began,

that someone ran with his idea and took it further. Launched in San Francisco by

Brad Neuberg and Chris Messina, this movement also used technology to support

collaborative work. But it didn’t stop there. It used “working together as equals”

as the core of a novel approach to work: encouraging people to work together,

as equals, but separately. Everyone could work on their own projects and

business interests. But they could also help one another without worrying about

competitive pressures. And, according to DeKoven, the result was “productivity,

community, and, surprisingly often, deeply shared fun.”11

Neuberg launched the movement while working at a start-up in a rented office

space because he “couldn’t figure out how to have freedom and community

at the same time.”12 He felt renting office space was non-social and he wanted

to work somewhere that encouraged cross-fertilization and communication.

Coworking, he says, has “that extra spark of community.”

10 “Coworking Manifesto (global - for the World).” Wiki.coworking.org. Wiki.coworking.org, 25 Jan. 2011. Web. 4 Nov. 2014. <http://wiki.coworking.org/w/page/35382594/Coworking+Manifesto+(global+-+for+the+world)>.

11 DeKoven, Bernard. “The Coworking Connection.” Deepfun.com. Bernie DeKoven, 5 Aug. 2013. Web. 4 Nov. 2014.

12 Dullroy, Joel. “Coworking Began at Regus... but Not the Way They Think.” Deskmag.com. Deskmag, 4 Apr. 2012. Web. 4 Nov. 2014. <http://www.deskmag.com/en/coworking-did-begin-at-regus-but-not-the-way-they-think-362>.


He started testing his ideas at a women’s community center, Spiral Muse, in San

Francisco’s Mission district during business hours several days a week. Those

who started working with him took his ideas and set up their own facilities. The

coworking universe has been expanding ever since.

In 2008, the New York Times finally noticed its meteoric expansion, writing: “The

Hat Factory in San Francisco is a live-work loft that’s home to three technology

workers, who open up during the day to other people. Some companies, like

Citizen Agency, a San Francisco Internet consulting firm that has done the most to

evangelize coworking, have an open-door policy, in which people rent desks but

others are free to drop in and use the Wi-Fi or the conference room.”13

It continued: “Some companies rent out desks to the nomadic workers, hoping

some of their Internet mojo will rub off. Yet others have started coworking spaces

as businesses unto themselves, like a community version of the corporate business

centers operated by the Regus Group.”

And the expansion continued. A 2013 study suggested there were 110,000 people

globally working in nearly 2,500 coworking spaces, 781 of which were in the U.S.

at that time.14 The study found that 4.5 new coworking spaces were being opened

daily and 245 people were joining spaces every working day.

This is a movement that is exploding around the world. And if you are a fan

of timelines, here’s a great one that outlines stellar moments in the history

of coworking.

Different planets: Rental fac i l i t ies , startup incubators and coworking spaces

All startups need space, capital, talent, mentorship and influence. And

there are many options out there that are planets apart.

Coworking sites tend to attract early stage businesses, entrepreneurs, creatives

and other professionals who enjoy collaborating and expanding opportunities

through networking and peer-to-peer mentorship.

Incubators, however, take a different approach. They focus on giving a helpful

push to high-growth, venture-backed startups. They are rated by how well

13 Fost, Dan. “They’re Working on Their Own, Just Side by Side.” Nytimes.com. The New York Times Company, 20 Feb. 2008. Web. 4 Nov. 2014. <http://www.nytimes.com/2008/02/20/business/businessspecial2/20cowork.html?pagewanted=all&_r=0>.

14 Foertsch, Carsten. “4.5 New Coworking Spaces Per Work Day.” Deskmag.com. Deskmag, 4 Mar. 2013. Web. 4 Nov. 2014. <http://www.deskmag.com/en/2500-coworking-spaces-4-5-per-day-741>.


the companies in their centers develop.15 And many of them are subsidized

by government agencies and investment companies interested in economic

development. Companies in these spaces are more likely to work around one

another than together.16

Accelerator spaces are kind of like incubator spaces on caffeine. Companies that

go into these spaces are usually put onto a deadline-driven program, usually three

to four months, that improves their odds of start-up success. Many of the centers

will also invest in the companies in their programs.

Office rental facilities are pretty much the plain vanilla option. They break up a

space into small offices; add some services, such as Internet access and reception

areas; and sublease the space. This model appeals to businesses looking for the

privacy and services of an office but don’t want to lease a space of their own.17

Who are these coworkers?

It probably won’t shock anyone. The average U.S. coworker is young, male,

well-educated, works in tech, lives close to the coworking facility and loves

coworking.18 More women are coming on board though:

Women coworking (percentage of members):19

•2012: 38 percent

•2011: 34 percent

•2010: 32 percent

As already mentioned, the Millennials are dominating this space:20

•41 percent are under the age of 30;

•37 percent are between 30 and 40 years of age;

•14 percent are between 40 and 50 years of age;

•8 percent are over the age of 50.

15 Bacigalupo, Tony. “What Are the Differences between Office Rental Facilities, Startup Incubators, and Coworking Spaces?” Blog.coworking.com/. The Coworking Blog, 8 Nov. 2011. Web. 6 Nov. 2014. <http://blog.coworking.com/what-are-the-differences-between-office-rental-facilities-startup-incubators-and-coworking-spaces/>.

16 Bacigalupo, Tony. “What Are the Differences between Office Rental Facilities, Startup Incubators, and Coworking Spaces?” Blog.coworking.com/. The Coworking Blog, 8 Nov. 2011. Web. 6 Nov. 2014. <http://blog.coworking.com/what-are-the-differences-between-office-rental-facilities-startup-incubators-and-coworking-spaces/>.

17 B acigalupo, Tony. “What Are the Differences between Office Rental Facilities, Startup Incubators, and Coworking Spaces?” Blog.coworking.com/. The Coworking Blog, 8 Nov. 2011. Web. 6 Nov. 2014. <http://blog.coworking.com/what-are-the-differences-between-office-rental-facilities-startup-incubators-and-coworking-spaces/>.

18 King, Carol. “Profiling Coworkers in the United States.” Deskmag.com. Deskmag, 1 Feb. 2011. Web. 6 Nov. 2014. <http://www.deskmag.com/en/coworker-profile-usa-coworking-175>.




And while they may be young, these coworkers are smart: 75 percent have

completed at least a bachelor’s degree, compared to 27 percent of the general

U.S. population and 50 percent of U.S. small business owners.21

Most coworkers don’t really like to commute, either: More than 30 percent either

walk or bike to work and less than half, 44 percent, drive.22

So what are they doing in these coworking spaces? For now, that answer is easy:

tech, broadly defined; but tech, nonetheless:

•44 percent are Web developers/designers;

•13 percent work in public relations and marketing;

• 43 percent are from a mix of professions including artists, entrepreneurs,

journalists and consultants.

The finding in Figure 2 probably won’t surprise you. It shows that freelancers, 53

percent, and entrepreneurs, 14 percent, account for most coworkers.23

Figure 2: Freelancers continue to account for more than half of all coworkers.24






Back on earth

OK, let’s come back down to earth and take a look at the advantages and

disadvantages of coworking.

Coworking may not be all its cracked up to me. Keep the following considerations

in mind when evaluating whether or not it could work for you:

1. Would you soar in a coworking space? Personality is one of the main things

to take into account when considering coworking.25 This can be a great,

affordable way of working for people who are driven, flexible and sociable.

If you are an introvert who values privacy and quiet, however, this may not

be a good place for you.

2. Can you focus? Coworking spaces can also prove to be a huge distraction

unless you are good at managing your time. Many spaces offer a lot of

networking opportunities and events that can take your focus away from

your project if you let it. So be honest about just how good you are at

managing your time.

3. Do you play well with others? These spaces are all about sharing. So, if

you don’t like helping out here and there, you may do better in another

working environment.

4. It just won’t work for some companies:26 Coworking spaces are just not

going to work for some companies that require privacy and dedicated

space. There are many businesses—legal and health businesses come

straight to mind—that have legitimate reasons for wanting information to

be secure. They might not be comfortable in an environment where

people are looking and listening for opportunities.

5. There’s not much space to put your stuff:27 There really isn’t a lot of

storage space for files, PCs and other stuff you may need for your

business. Some spaces may offer lockers, but that’s not always enough.

25 Eisenberg, Melissa. “To Cowork or Not to Cowork: Is Coworking Right for You?” Venturebeat.com/. Venture Beat, 3 Nov. 2012. Web. 11 Nov. 2014. <http://venturebeat.com/2012/11/03/to-cowork-or-not-to-cowork-is-coworking-right-for-you/>.

26 “The Advantages and Disadvantages of Co-working Offices.” Http://telsec.net/. Telsec.net, n.d. Web. 21 Nov. 2014. <http://telsec.net/blog/the-advantages-and-disadvantages-of-a-coworking-offices/>.



6. Clients may not be impressed:28 If you want to bring clients to where you

work, they might get mixed signals from an office with no dress code.

People come and go, dressed as they please, which can make the space

seem more like a public library—something that some clients may not be

comfortable with.

7. Seats too hot to handle: Many coworking spaces don’t allow you to reserve

seats, so you may be moving around a lot when working in these spaces.

Can you handle being in a new seat every day? Some spaces will allow you

to reserve a seat, but it’ll cost you extra.

8. Sharing space with competitors: Coworking attracts a lot of people working

in the same space. So, if you are not comfortable with potential rivals being

in the same room at the same time, then maybe it just won’t work for you.

Now for the upside:

1. Networking, networking, networking: If the force within you is strong

and you can network effortlessly, you may well thrive in a coworking

space. There can be dozens of interesting projects happening and

fantastic conversations going on at the water cooler. And some spaces

have community organizers, whose job is to introduce members who

may be able to help one another out.29

2. Hang out with potential employees and clients: Coworking spaces are never

short on stories about the connections made in their facilities that lead to

job and business opportunities.

3. Save yourself some time: Time is really precious as we strive for a

work/life balance. And if you are struggling with a business issue, there

is a lot of time to be saved when the person sitting next to you just may

have the answer.

4. Professional meeting places: With coworking spaces, you often get access to

professional meeting rooms—a comfortable place for meeting clients.

5. Go back to school: Many coworking spaces organize regular events and

seminars that are of interest to members. In Good Company, for example,

provides monthly talks with successful female entrepreneurs, classes on case

study growth strategies and expert panels.30


29 Kessler, Sarah. “8 Reasons to Consider a Coworking Space.” Inc.com. Inc.com, n.d. Web. 21 Nov. 2014. <http://www.inc.com/ss/8-reasons-consider-coworking-space>.



Costs of coworking

Coworking facilities come in all sorts of flavors. Cooperatively managed spaces

run by non-profit organizations, for instance, may charge just what it takes for

them to stay in business. Other spaces charge flat-rate memberships or fees for a

single visit or a certain number of days weeks, months or a year.

So, shop around when looking at coworking sites. Costs can vary widely

depending on your location and what access you are after. Monthly memberships

can range from $50 to $450 or more based on the city, amenities and building.31

The charges usually cover a desk and Wi-Fi. There may be additional charges,

however, for unlimited coffee, a locker or office keys for 24/7 access.32

How to land somewhere that works for you

How do you go about finding a space that may work for you? Coworking’s real

value is in the relationships it makes possible, even over the other resources it

provides. So, when looking, keep in mind the associations you are looking to

develop. Here are some other key considerations:

• Find your niche:33 Coworking spaces are opening up to serve just about every

niche you can think of. The Metropolitan Exchange in Brooklyn focuses

on architects, urban planners, and industrial designers; Green Spaces is a

hub for green and socially aware individuals looking for Denver coworking

spaces; and New York City’s In Good Company specializes in serving female

entrepreneurs. So, take some time and look for a coworking space that is a

good fit for your business and business philosophy.

• Places to meet:34 Every business has times when they need privacy,

so make sure the facility offers meeting rooms or a boardroom for

when you need them.


32 Hamburgh, Rin. “Co-working: An Option for Freelancers.” Theguardian.com. Guardian News and Media Limited, 14 Jan. 2014. Web. 21 Nov. 2014. <http://www.theguardian.com/money/2014/jan/14/co-working-freelancers-advantages-disadvantages>.


34 Walker, Ben. “Coworking Checklist: 9 Point Checklist of What to Look for in a Coworking Space.” Http://inspirecafe.com/. Inspire Cafe, 18 June 2014. Web. 21 Nov. 2014. <http://inspirecafe.com/coworking-checklist-9-point-checklist-of-what-to-look-for-in-a-coworking-space/>.


• Is it up to speed?35 Make sure to check out the office facilities, including

Wi-Fi speeds, access to a printer and enough power outlets to charge your

stuff. Or maybe there is some other piece of equipment—possibly even a

fax—that you need. And don’t forget to check out the seating. Furniture

may look cool, but your back may not appreciate the beauty after an eight-

hour day.

• Snacks and refreshments:36 Investigate the kitchen facilities. Do they work

for you? And what kind of drinks and snacks are available?

• Convenient opening hours:37 Many coworking facilities started life keeping

business hours. But 24/7 access is becoming common as flexible working

hours become more important. Make sure the space you are considering has

opening hours that work with your schedule.

• Could you work there?38 Noise can be the enemy of productivity. Spend

some time walking around the space to get a sense of how noisy it gets—

and maybe pick up noise-reducing headphones, just in case.

• Can you get there easily?39 Many coworkers like to be able to walk or

use public transport to get to work. If it’s important to be able to get

to work without taking on an enormous trek, ensure the location is

convenient for you.

• How does it feel?40 When you walk in the door, what impression are you

getting? Do you like the space, lighting, vibe and temperature? Will you be

comfortable working in this space? You may be spending many hours there.

• Can you afford it?41 As mentioned, coworking fees vary widely. Verify that

the place you are looking at fits within your budget.

Finally, here’s a directory to help you start the search. Good luck!






40 “What to Look for in a Coworking Space.” Http://turbinehq.com/. Turbine, n.d. Web. 21 Nov. 2014. <http://turbinehq.com/2013/coworking-what-to-look-for/>.

41 “What to Look for in a Coworking Space.” Http://turbinehq.com/. Turbine, n.d. Web. 21 Nov. 2014. <http://turbinehq.com/2013/coworking-what-to-look-for/>.


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A future in coworking

Coworking promises a new working environment based around community and

synergy. People who are driven, flexible, and sociable may really enjoy working

in these spaces. And if it will work for you, this can be a very affordable option.

As with most things though, this environment will not work for everyone. People

who are introverted or who just want to get on with their jobs may find this

open environment a little uncomfortable. And many businesses will need

more privacy than many of these spaces can offer. Ultimately, choice is good,

and many companies and individuals will thrive in these spaces. And that can

only be a good thing for every community.

Coworking Blue Paper

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