Office sharing is on the rise, especially in locations like NYC and San Francisco where the cost of commercial real estate remains astronomically high, in large part due to demand driven by startups and other SMB’s scrambling for office space. Since starting PivotDesk in 2012, we’ve helped companies in NYC save $3.3 million on office space costs by sharing their unused space. That’s REAL money. In one shining example, host company, Techstars NYC has made over half a million dollars using PivotDesk to share their unused desks.
With many notable “unicorns” faltering, and experts beginning to foresee the burst of the current tech bubble, it’s no wonder smart businesses are re-thinking their office space spend. In early 2016, we’ve already seen demand for shared office space increase by 41% compared to the beginning of 2015.
Often, we focus on stories of guest companies finding their ideal office space with PivotDesk, sometimes in less than a day — but what about the host companies? We’re doing a deep-dive on the perks of office sharing for those companies that choose to make the most of their office space spend by sharing unused desks on our site.
Why it works
It’s pretty simple: Office sharing has tremendous benefits for businesses seeking to build agility into their business plans so they can concentrate on growth. Flexibility, cost savings, and reduced risk make it a great option for companies of all types and sizes. Host companies like Piece & Co. featured above, benefit from making money on their excess space while remaining in complete control over who is in their space and when. And if a host needs their space back, all they need to do is give 30 days notice.
How it works
Often, shared office space services are offered by companies that have leased a space that is larger than they need — which is very common among growing businesses. No one wants to move every 6 months!
Other companies experience downsizing or restructuring and suddenly find themselves with empty desks. Whatever the reason, it’s never ideal to be saddled with the costs of leasing space that’s not being fully utilized. Office sharing is a way for these firms to offset their costs by hosting other companies or individuals in the space.
Of course, there are a number of ways to make money back on unused space, from emailing your network to working with a broker to sublet empty space — but we’re a bit partial to our own service…but only because it works so well for businesses of all sizes and phases!
Sharing space on the PivotDesk platform is designed to be incredibly simple and efficient — think of it as a stand-in office manager. Posting your excess space on the site can be done in a matter of minutes, from there, we’ll help match your space with potential guest companies. Guest companies request tours before booking, so you always have control of who gets to share your space. When you’ve finished vetting potential guest companies and you’re ready to book — we take care of contracts, monthly billing and deposits.
The proof is in the numbers
The idea has really caught on, and hosts are reaping benefits from the office sharing model. Host companies on our platform are making more with PivotDesk than ever before — we’ve already seen a 23% increase in booking value in 2016 compared to early 2015.
And as more and more businesses are realizing the benefits of flexible office sharing, demand for space has continued to increase, especially among larger companies, which now make up 22% of our bookings. As such, it’s not unusual for hosts to earn $40,000 a year or more, just for filling unused space in the office.
So it would appear that the word is out. Not only is office sharing a boon for companies looking for affordable space without long-term commitments; it’s also a great option for the host companies.
The only question left to address is, what are you waiting for? Share your space here.
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