Newsec Property Outlook Spring 2019: (Co-)working 9 to 5 – is that the new way to make a living?
The total co-working stock in the Nordic and Baltic countries has grown by 36 percent from 2017 to 2018. Following this strong growth, the amount of co-working space will continue to increase by another 24 percent in 2019, up to 680,000 square meters. Co-working as a share of the total office stock will also continue to grow, from 1.5 percent in 2017 to about 2.5 percent in 2019. These figures are available in the latest issue of the Newsec Property Outlook.
A considerable share of the largest new leases in the Nordic and Baltic countries over the past year have been co-working related. Of the capital cities, Stockholm has by far the largest number of co-working locations with close to 70 locations. The rest of the top three are Copenhagen that comes in second place, followed by Oslo.
“Sharing economy initiatives are a driving force for innovation within the real estate industry and right now co-working is the expression on everyone's lips. I welcome this development and believe that the entire industry has a lot to gain from finding creative ways to work together and renew the business model. But I also want to emphasize the importance of profitability and of sustainable business models. I am convinced the sharing economy as a phenomenon is here to stay, but it won't be for everyone”, says Max Barclay, Head of Newsec Advisory.
Is co-working only for young people at tech startups?
Contrary to popular belief, only 19 percent of those working in co-working locations in the Nordic and Baltic countries are freelancers or one-man companies. The majority, 65 percent, consist of smaller companies with two to ten employees. Companies with more than ten employees, of which some are significantly larger organizations such as Microsoft, KPMG, Electrolux and SEB, make up the remaining 16 percent.
With 35 percent, the IT industry boasts the largest share of those using co-working in the Nordic and Baltic countries. However, co-working also attracts companies from a wide range of industries includingdesign, media, food, fashion, charities, finance and many more.
The gender distribution of those working in co-working spaces is even. When looking at co-working members from an age perspective, 32 percent are under 30 years, 55 percent are between 30 to 50 years and 13 percent are over 50 years old.
Though co-working is primarily centered in major cities, many smaller towns have also attracted co-working actors, meaning most towns with a population over 50,000 across the Nordics and Baltics are now home to at least one co-working location.
Find the full Newsec Property Outlook at newsec.com/npo
About the report
The Newsec Property Outlook has been published twice a year since 2012. The free report describes and forecasts the real estate market in Northern Europe, with a focus on the Nordic and Baltic countries. Klas Eklund, the Swedish economist, also paints a picture of the macroeconomic situation. The report has come to be a handy tool for investors, property owners and local users.