Spaces that provide opportunities for both co-living and co-working are on the rise. Many co-living platforms, such as Ollie and Outpost, integrate co-working spaces into their projects.
What’s the attraction? The “all-in-one” philosophy at play here is extremely attractive to millennial consumers, as it allows them to pay one flat rate that covers both living and office expenses. For instance, Outpost’s newly created Bali location charges a flat monthly rate of $920, which includes a bedroom and access to workstations and other office facilities. Residents also maintain access to the various amenities on offer, which include a pool and communal kitchen, among other options.
“I think these flexible solutions are going to be the future,” João Lopes Raimundo, co-founder of co-working platform LACS, said in an interview given to Via News.
There’s also the notion that placing co-working under the co-living umbrella will remove some of the skittishness that remains in the sector after the WeWork IPO fiasco. Since the failure, WeWork’s leasing activity has slowed to a crawl, which can also be said about other co-working platforms, such as Industrious and Knotel. Industry wide, newly leased space plummeted 75% in the fourth quarter of 2019 to just under 1 million square feet, down from 3.95 million in the prior period.
The merging of co-living and co-working could serve each industry well. Co-working can continue to grow, despite recent set backs, and attach itself to a growth industry that has yet to be marred by something akin to the WeWork debacle. Co-living, on the other hand, can use the addition of communal office spaces to diversify their offerings. In order for the co-living to continue rapid growth, it may need to become open to diverse demographics, which co-working could provide.
“For co-living to escape the label of a trend and mature into a permanent category in the residential vernacular, it’s going to have to prove a broader customer base, overcome the aging out of its primary demographic and survive the vicissitudes of economic cycles,” Jeff Berman, general partner at Washington, D.C.-based venture capital firm Camber Creek, told Forbes.
Co-living and co-working platforms are remarkably similar. They both offer consumers a communal experience that attempt to ease social isolation. They both cater to millennials in a variety of modern industries. They share many of the same contacts in the real estate industry.
“The parallels to co-working are striking. It’s not just a desk, it’s access to connections, people, events, networks,” noted Richard Lustigman, Director of Co-living at JLL’s Living Capital Markets business. “That holistic offer is far more powerful and valuable than traditional shared accommodation or flexible workspaces.”
Looking ahead, Lustigman believes that these mixed-use enterprises will continue to grow unabated.
“Truly functional mixed-use buildings are critically important for the future of our cities. The best cities and the best buildings within them will be measured by how sustainable they are, how flexible they are and how well they work not just for occupants today, but for future generations.”
In addition to Ollie and Outpost, other platforms that offer spaces that combine co-living and co-working.
Nomad House – This company provides mixed-use accommodations throughout the world, which can be perused via search engine. Consider it more of a mixed-use Airbnb instead of a full service provider.
Selina – These co-living and co-working spaces focus on wellness, art, music and culture. As such, locations offer yoga studios and movie theaters, in addition to bedrooms and office suites.
The Outsite – This platform offers mixed-use spaces in a number of exotic locales, including Costa Rica and Hawaii. They provide access to outdoor gear, such as surfboards, in addition to office space. Additionally, the company is interested in creating an enabling environment for female entrepreneurs.
photo credit: coworker