These days, more and more young businesspeople are gravitating toward shared office rentals rather than using the traditional model of buying office space outright. Is this a cost-saving endeavor? A sign that millennials are less likely to stay in one job for very long? Or something else? The truth is that there are many very good market-based reasons for millennials to rent shared office space. Here are just a few of the most common factors.
Long-Term Cost Savings
The potential cost savings of shared office space serves as the biggest reason that all businesspeople, both young and old, consider this model. Shared office rentals can cost $20 per day or less, depending on where you rent them. The cost savings combined with the fact that those who rent shared office space don’t have to pay for a cleaning crew, technical assistance, and utilities means that it takes several years before buying space outright becomes less expensive than renting it from day to day, week to week, or month to month. With many businesses often operating within tight financial models, the rental model frees up space to allow a company to invest capital in other areas that can encourage long-term growth.
Great for Startups
Startup companies and small businesses need a way to save money while also possessing the ability to grow. A shared office provides both of these. The cost savings are discussed above, but the ability to move workspace and expand quickly as a small company grows is also an important factor. The modern working world is not purely ruled by large corporations that employ millions—places like Toronto with a high population of business-savvy millennials also provide fertile ground for smaller, more agile businesses to thrive. As one of these businesses grows, moving from a rented office to a larger space is very easy using the shared office model.
Flexibility for Remote Employees
Employees who normally work remotely or who act as contractors or freelancers don’t always need a physical workstation. For those individuals, companies enjoy the flexibility offered by shared office space. This model allows employees who work remotely to still have a physical workspace when they are on-site, giving them the ability to collaborate in person with others on important projects. Similarly, it means that contract workers and temporary employees have a guaranteed workspace that doesn’t conflict with anybody else’s space but still provides them with easy access to all the office essentials they need. Businesses that employ a lot of millennials need the flexibility to hire nonstandard employees, and the shared office space model does that for them.
Many millennials work as contracted or similarly nonstandard employees. Others build their own businesses or work for companies that need to keep costs low. As such, shared offices work best for this generation of workers. While the facts outlined above are not true for all millennials, they do provide a simple explanation as to why so many younger workers these days are learning about the benefits of shared work spaces.