Let’s start with the definition of a co-working space. Per Wikipedia: “Coworking is a style of work that involves a shared working environment, sometimes an office, yet independent activity. Unlike in a typical office environment, those co-working are usually not employed by the same organization. Co-working is the social gathering of a group of people who are still working independently but who share values, and who are interested in the synergy that can happen from working with talented people in the same space.”
At Inman NYC 2012, we learned that 92 percent of successful agents are in their brick-and-mortar offices fewer than 15 hours per month. That equates to a lot of wasted, unused space being paid for and provided by brokerages. Why? What has changed in the past decade (or two) that has decreased the need for a traditional office space?
More importantly, what are brokerages doing to offer spaces their agents will want and use?
Back in November 2011, at a National Association of Realtors conference in Anaheim, Calif., I had the opportunity to sit through a session titled, “How Co-Working Spaces Can Work for You,” presented byJay Thompson, Nobu Hata, Jeff Turner and Bill Risser. What really impressed me: While each presenter was using co-working spaces with success, each was also using them in a completely different manner from the other. Also, it seems that co-working spaces are more about the community using them than the physical space.
Nobu Hata is a practicing real estate agent, Realtor and president of the Young Professionals Network, a group launched by Realtor Magazine in 2006 to benefit young Realtors. He is also an avid “co-worker.” As an offshoot of its local Real Estate BarCamp event, the Minneapolis Association of Realtors decided to dedicate a space in its building just for co-working.
Nobu also works out of CoCo – a co-working and collaborative office space — whenever he is in nearby St. Paul. “I’m surrounded by true, community-based entrepreneurs, and the ideas I get from those guys are amazing!” he said. “It’s also a great opportunity to work amongst potential clientele.”
He’s definitely onto something: Per Deskmag’s “First Global Coworking Survey,” the average age of a co-worker is 34, 80 percent consider themselves to be in the income range of average or higher, and 4 out of 5 have a college education. Eighty-five percent of the respondents to the survey live within 30 minutes of their co-working space. Sounds like a pretty good potential real estate client profile.
Jay Thompson is the broker-owner of Thompson’s Realty in Phoenix. Jay’s brokerage does not have a traditional office space — it uses a co-working space called Real Estate Tech Tank. His agents, as well as other real estate professionals and affiliates in the community, are welcome to use the space at no charge.
TechPad
As Jay explains, “What really sets the co-working space apart from the traditional office is that it pulls in people from multiple real estate disciplines — agents, brokers, lenders, title (insurance workers), inspectors and others — and is a conducive environment that promotes working together and helping each other be better at what we do.”
Co-working spaces can be anything from an organized, professionally managed building designed specifically for co-working, to an empty, old warehouse with some mismatched tables and chairs. Amenities usually include Wi-Fi, printer, phone and conference space. Some offer kitchen facilities, large meeting rooms and even secretarial services.
In keeping with the needs of freelancers and other independent workers, most spaces offer secure access and are open 24/7. Prices to use co-working space vary greatly. Options typically include paying by the hour, by the day, or by the month. Some spaces offer membership plans, and most are free to try for a couple of hours.
Before embarking on your own migration to co-working, it’s important to know co-working etiquette. Rebecca Samuelson, the assistant director of TechPad in Blacksburg, Va., offers the following advice: “Don’t talk on your cell phone during business hours. Co-working spaces usually have conference rooms or secluded areas for phone conversations. If someone has headphones on, don’t approach them.”
Rebecca says she honestly cannot think of any negatives to co-working. “It’s fun, it’s social, it’s productive, it’s creative.”
For more information, or to find a co-working space in your area, check out Coworking.com.
February 15, 2012 at 7:34 am
Great article, Tina. As you know, we use a combination of ‘traditional’ bricks and mortar and co-working space at Nest Realty. In our Charlottesville office, we have enough space for our agents to work efficiently on a regular basis. But during extremely busy times and when we need multiple conference rooms at once, we can zip down the street to utilize a co-working space. It’s the perfect mix because it allows us to keep our fixed overhead low while still having access to the more space (specifically conference rooms) if we need it.
While coffee shops may be great sometimes, there’s something to be said for a professional office environment with access with top-notch networking capabilities. We see a strong role of co-working spaces in our business model moving forward.
February 15, 2012 at 10:34 am
Great article …. I like open .. co-sharing spaces. Key for Broker owners is to make sure there is enough acoustic sound deadening material to keep the noise levels down, so one doesn’t feel like they are working in the middle PfChang’s Restaurant!
This new approach is perfect for controlling cost and operating with a larger number of agents than typical bricks & mortar offices.
This is the future! Those those that embrace early on will have a competitive advantage in recruiting top notch agents.
Thanks Tina
February 15, 2012 at 7:36 pm
Very educational, Tina, thanks for sharing! I have heard the term “co working” before but wasn’t sure really what all that entailed and how that would work in our industry. I enjoyed reading how it worked for other Real Estate professionals. But for me, this is still a spin off of brick and mortar offices, and I favor the privacy and quietness of working out of my office from home. Can’t beat the travel time…
February 16, 2012 at 5:24 am
Makes sense to me – as a person that does 90% of my work from home, home is still not a good place to meet a client and I find places like starbucks distracting. As long as the space had some private conference rooms in addition to some work desks I would be happy.
February 16, 2012 at 5:38 am
I have been thinking alot about this. I see agent who fail because they are not focused enought to WORK at home. I have seen over and over an agent who comes to the office dressed prepped and ready for work is more successful. I dont think every agent needs this but MANY do. I personally can work from home but I learn so much more being around others. I learn from hearing what others are doing and how they are dealing with problems. If an agent does not have a brick and morter then they need something they can go to for a professional enviroment. All good points but I still think a brick and morter store will always be needed. WE do still get WALK INS !
February 18, 2012 at 4:30 am
Well presented. Interesting observations. Trends which appear to be generation II of “by the foot” office suites for small businesses which have become so popular.
February 22, 2012 at 6:11 pm
Two years ago Inman asked me write a piece about what a real estate brokerage will look like in 2020. Writing prediction pieces drive me up a wall so I wrote it like a bit of short fiction instead.
It features co-working space for all the reasons outlined above.
For premium accts: http://lowes.inman.com/buyers-sellers/columnists/gahlorddewald/in-2020-will-process-replace-policy
But the content is also here: http://www.mariechung.com/in-2020-will-process-replace-policy-0
February 23, 2012 at 5:24 am
Very educational, learned something new! I have heard the term “co working” before but wasn’t sure really what all that entailed and how that would work in our industry.